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Is this Warren Buffett stock ready for take-off after $400 million buying spree?
OXYOXY(OXY) Finbold·2025-01-06 10:33

Warren Buffett's Investment in Occidental Petroleum - Warren Buffett's Berkshire Hathaway invested approximately 405millioninOccidentalPetroleum(OXY)sharesduring2024,despitethestocktradingbelow405 million in Occidental Petroleum (OXY) shares during 2024, despite the stock trading below 50 [1] - OXY stock has shown signs of recovery, currently trading at 50.51,up1.4150.51, up 1.41% in the last trading session and 4.6% on a weekly basis [2] Technical Analysis and Potential Breakout - OXY stock is forming a bullish technical pattern, pushing above a descending wedge, with a bullish MACD cross indicating positive momentum [4][5] - Key resistance levels to watch are 55 and 62.50,withapotentialbreakoutpavingthewayforhigherpriceranges[6]FinancialRecoveryandStrategicMoves−OccidentalPetroleumhasreduceditsdebtby6062.50, with a potential breakout paving the way for higher price ranges [6] Financial Recovery and Strategic Moves - Occidental Petroleum has reduced its debt by 60% since its 2019 acquisition of Anadarko Petroleum, leveraging 23.6 billion in free cash flow from the 2022 oil surge [7] - The company redeemed 15% of Berkshire's preferred stock, saving 120millionannuallyininterestcosts[7]Long−TermGrowthOpportunities−Occidental′sinvestmentindirectaircapture(DAC)technologypositionsitforlong−termgrowth,withMicrosoftpurchasing500,000metrictonsofcarboncreditsandtheU.S.governmentinvesting120 million annually in interest costs [7] Long-Term Growth Opportunities - Occidental's investment in direct air capture (DAC) technology positions it for long-term growth, with Microsoft purchasing 500,000 metric tons of carbon credits and the U.S. government investing 500 million in its carbon capture projects [8] Revenue Outlook - Occidental's revenue is expected to decline by 6.65% in Q4 2024 to 7.03billion,butreboundby14.967.03 billion, but rebound by 14.96% in Q1 2025 to 6.91 billion [9][10] - Full-year 2024 revenue is estimated at 27.15billion,down6.127.15 billion, down 6.1% from 2023, with a forecasted rebound to 28.44 billion in 2025, marking a 4.75% year-over-year growth [10] Analyst Projections - Wall Street analysts project OXY stock to trade at an average price of 60.45inthenext12months,withthehighestforecastat60.45 in the next 12 months, with the highest forecast at 78 [11]