Occidental Petroleum: A Contrarian Buy
Portfolio Pulse from
Warren Buffett's Berkshire Hathaway has increased its stake in Occidental Petroleum to over 28%. Occidental is focused on reducing debt and has strong free cash flow profitability. The company's valuation is attractive with a forward P/E ratio of 12.5X, suggesting a potential 20% upside based on FY 2026 earnings estimates.
January 14, 2025 | 6:45 am
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POSITIVE IMPACT
Occidental Petroleum's stock is likely to see positive movement as Berkshire Hathaway increases its stake to over 28%. The company's focus on deleveraging and strong free cash flow profitability, combined with an attractive valuation, suggests a potential 20% upside.
Berkshire Hathaway's increased stake in Occidental Petroleum signals confidence in the company's future performance. Occidental's focus on reducing debt and maintaining high free cash flow profitability, along with an attractive valuation, supports a positive outlook. The potential 20% upside based on FY 2026 earnings estimates further enhances the stock's appeal.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100