5 Oil Stocks to Sell Before Recession Begins

2. Occidental Petroleum Corporation (NYSE:OXY)

Number of Hedge Fund Holders: 67

Stock Price as of July 7: $59.11

Occidental Petroleum Corporation (NYSE:OXY) is a Houston, Texas-based oil and gas E&P company.

Although Occidental Petroleum Corporation (NYSE:OXY) has been receiving great attention from Warren Buffet’s Berkshire Hathaway Inc., the consensus forecast is that the company will see an 11.6% decline in revenue growth in FY23. This will be followed by a further 7.6% decline in FY24. JR Research predicts Occidental Petroleum Corporation (NYSE:OXY) to underperform the market over the next four years.

On June 7, Stephen Richardson at Evercore ISI downgraded Occidental Petroleum Corporation (NYSE:OXY) stock from an Outperform to an In-Line rating with a price target of $74. The analyst highlighted that the tailwinds of the stock have already been priced in, and there is limited room for differentiation.

In its Q3 2021 investor letter, Smead Capital Management discussed its outlook on Occidental Petroleum Corporation (NYSE:OXY). Here’s what the firm said:

“Oil stocks dominated our winners for the quarter. We showed that we have unlimited ability to tempt fate by buying into Occidental Petroleum (OXY) this year after it was our biggest loser of 2020. It gained 16.64% during the third quarter.”

At the end of Q1 2022, Occidental Petroleum Corporation (NYSE:OXY) was held by 67 hedge funds.