Sometimes, the most boring stocks can be the most exciting.
Look at Occidental Petroleum (OXY).
Days ago, the Warren Buffett-loved stock gapped lower. All after the company missed non-GAAP EPS by 22 cents. EPS of $1.61 on sales of $8.3 billion, was below expectations for $1.83 on sales of $8.7 billion.
However, there’s still a lot to like about the downed stock. For one, on the pullback, there was speculation that Buffett would add to his stake. After all, the billionaire loves the stock, especially after it announced a new $3 billion share buyback program and increased its dividend by 38% to 18 cents a share. Then, as expected, speculation became fact.
Over the last few days, Berkshire Hathaway bought another 5.8 million shares of OXY, paying between $59.80. and $61.90. Now, investors want to know if Berkshire will just buy Occidental outright at some point in the future.
According to CNBC, “The latest purchase, totaling more than $350 million, marked the first time the “Oracle of Omaha” hiked his bet since September. Berkshire now owns 200.2 million shares of Occidental, worth $12.2 billion based on Tuesday’s close of $60.85. The conglomerate now holds 22.2% of the oil company, up from 21.4% previously.”
Technically, OXY is oversold at support dating back to early 2022. From current prices, if OXY can break above $75, it could see higher highs. With Buffett a big fan of the company, it’s well worth watching, even if it does fall apart again.
OXY last traded at $61.04 a share.