Why Occidental Is Poised to Outperform

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and gas giant Occidental Petroleum has earned a respected four-star ranking.

With that in mind, let's take a closer look at Occidental, and see what CAPS investors are saying about the stock right now.

Occidental facts

Headquarters (founded)

Los Angeles (1920)

Market Cap

$71.5 billion

Industry

Integrated oil and gas

Trailing-12-Month Revenue

$24.2 billion

Management

CEO Stephen Chazen (since 2011)

CFO Cynthia Walker (since 2012)

Return on Equity (average, past 3 years)

15.3%

Cash / Debt

$3.8 billion / $7.6 billion

Dividend Yield

2.6%

Competitors

Anadarko Petroleum

Chevron

Devon Energy


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,398 members who have rated Occidental believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, hend6, succinctly summed up the Occidental bull case for our community:

Very strong and consistent earnings, at 6%+ net income to gross revenues. Balance sheet is strong, too, with a significant asset-to-liabilities ratio. Share repurchases are continual over at least the past three years, showing internal confidence. A decent dividend yield, and a diversified business model. Should stay strong for a long time.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Occidental may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why Occidental Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Chevron. The Motley Fool owns shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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