We recently published a list of 11 Worst-Performing Blue Chip Stocks So Far in 2025. In this article, we are going to take a look at where Occidental Petroleum Corporation (NYSE:OXY) stands against other worst-performing blue chip stocks so far in 2025.
Blue chip stocks are under immense pressure amid the evolving trade tensions and tariff announcements around the globe. The stocks are down by more than 15%, with some plummeting into bearish territory on shedding more than 20% in market value year to date.
The selloff has come on trading volumes reaching levels not seen in 18 years; investors are increasingly exiting positions. As the US implements sweeping tariffs and China retaliates, fears of a global trade war and recession concerns continue to dent the market outlook.
“The president is losing the confidence of business leaders around the globe…this is not what we voted for,” wrote Bill Ackman, the billionaire head of Pershing Square, on X. “The President has an opportunity on Monday to call a timeout and have the time to execute on fixing an unfair tariff system. Alternatively, we are heading for a self-induced, economic nuclear winter and should start hunkering down.”
While blue-chip stocks come from well-known, established companies with a strong performance history, they are the most susceptible to changes in trade policies and tariffs. That’s because their business operations span various borders. This might explain why the stocks come under pressure every time the US imposes tariffs, followed by retaliatory measures from other nations.
Similarly, the prospects of the US Federal Reserve sticking with high interest rates to try and tame inflationary pressure from getting out of hand amid the trade war is another major headwind taking a toll on large-cap companies. Last year, the stocks exploded on expectations that the Central Bank would cut interest rates on inflation, dropping to acceptable levels.
Likewise, blue chip stocks exploded on the artificial intelligence-driven run amid growing expectations of multibillion-dollar opportunities around revolutionary technologies. Fast forward, interest rate cut expectations have faded, and investors have started questioning opportunities around AI. The development of low-cost AI models is one factor that has significantly affected sentiments in the semiconductor sector, triggering a recalibration of the long-term outlook.
According to analysts at research firm Citi, President Donald Trump’s tariff push could plunge the U.S. economy into a recession. In return, chip stocks could plunge by over 20% as they remain the most susceptible.
“We believe the biggest risk to the semi sector is a recession resulting from tariffs,” Chris Danely, a managing director at the bank, wrote to clients in a recent note. “If the tariffs continue for another month, we believe is it highly likely the supply chain will ‘freeze up’ given uncertainty, drastically lower order rates/inventory, and result in lower guidance across the board – similar to Covid.”
On the other hand, semiconductor stocks are not the only ones under pressure amid the escalating trade wars. Energy, industrials, and healthcare stocks are also feeling the brunt, resulting in some of the worst-performing blue chip stocks so far in 2025.
Our Methodology
To prepare this article, we began by listing all the holdings of the various blue chip ETFs like E.A. Bridgeway Blue Chip ETF and Vanguard Mega Cap ETF, among others. We then sourced the year-to-date share price returns for each company and selected the worst performers, as of April 25. We have also mentioned the hedge fund sentiment around each stock, as of Q4 2024. The stocks are ranked in descending order of their year-to-date performance.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Oil derricks in the background with a few workers in the foreground, emphasizing the company’s oil and gas production activities.
Occidental Petroleum Corporation (NYSE:OXY)
Year To Date Share Price Return as of April 25: -18.97%
Number of Hedge Fund Holders: 68
Occidental Petroleum Corporation (NYSE:OXY) is an integrated energy company exploring, producing, processing, and marketing oil and gas. It also has a significant presence in chemicals and is a leader in carbon management. It is one of the companies that have felt the full brunt of oil prices plunging below $70 a barrel. The stock is already down by 18.97% for the year.
Analysts at Barclays have already cut their price target to $46 from $58 while maintaining an Equal Weight. The price cut comes amid a negative oil and exploration outlook due to the deteriorating economic climate. The bank expects oil prices to average $60 a barrel in 2025, which could significantly affect Occidental petroleum earnings.
While Occidental Petroleum Corporation (NYSE:OXY) rewards investors with a modest 2.5% yield, it is still relatively low compared to the energy industry average of 3.1%. The company’s dividend was cut dramatically when oil prices imploded in 2020. The prospects of the company cutting its dividend payouts amid the current low oil price environment continue to weigh significantly on its sentiments. Another significant headwind weighing on Occidental Petroleum Corporation (NYSE:OXY) is its high debt load, having funded the $12 billion acquisition of CrownRock through debt. With oil prices plummeting, the company could experience significant financial pressure as it repays the debt.
Overall, OXY ranks 7th on our list of worst-performing blue chip stocks so far in 2025. While we acknowledge the potential of OXY as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OXY but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
