Opportunity or Value Trap? – Occidental Petroleum Corporation (OXY), Discovery Communications, Inc. (DISCA)

Occidental Petroleum Corporation (NYSE:OXY)‘s price-to-sales ratio of 4.48 is creating a long-term opportunity in the value in its stock. The broad Independent Oil & Gas industry has an average P/S ratio of 77.28, which is significantly worse than the sector’s 15.55. In the past 13-year record, this ratio went down as low as 1.33 and as high as 5.68. Also, it is down from 59% of the total 398 rivals across the globe.

OXY traded at an unexpectedly low level on 06/12/2017 when the stock experienced a -1.04% loss to a closing price of $69.27. The company saw 3.3 million shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 4.06 million shares a day, this signifies a pretty significant change over the norm.

Occidental Petroleum Corporation (OXY) Analyst Gushes

Analysts are speculating a 15.49% move, based on the high target price ($80) for the shares that is set to reach in the next 12 months. The analysts, on average, are forecasting a $67.65 price target, but the stock is already up 21.1% from its recent lows. However, the stock is trading at -5.77% versus recent highs ($73.51). Analysts believe that we could see stock price minimum in the $47 range (lowest target price), allowing for another -32.15% drop from its current position. Leading up to this report, we have seen a 0.65% rise in the stock price over the last 30 days and a 11.98% increase over the past 3 months. Overall, the share price is down -2.75% so far this year. Additionally, OXY had a day price range of $68.98 to $70.04.

Occidental Petroleum Corporation (OXY) Price Potential

Heading into the stock price potential, Occidental Petroleum Corporation by far traveled -1.83% after crossing its median price target of $68. In order to determine directional movement, the 50-day and 200-day moving averages for Occidental Petroleum Corporation (NYSE:OXY) are $67.34 and $62.7. Given that liquidity is king in short-term, OXY is a stock with 765.5 million shares outstanding that normally trades 1.18% of its float. The stock price recently experienced a 5-day loss of -0.9% with 0.98 average true range (ATR). OXY has a beta of 0.67 and RSI is 59.12.

Investors also need to beware of the Discovery Communications, Inc. (NASDAQ:DISCA) valuations. The stock trades on a P/S of 1.08, which suggests that the shares are attractive compared with peers. The broad CATV Systems industry has an average P/S ratio of 6.16, which is significantly better than the sector’s 2936.87. In the past 13-year record, this ratio went down as low as 1.18 and as high as 19.01. Also, it is up from 50% of the total 407 rivals across the globe.

Discovery Communications, Inc. (DISCA)’s Lead Over its Technicals

Discovery Communications, Inc. by far traveled 21.58% versus a 1-year low price of $15.99. The share price was last seen -2.11% lower, reaching at $19.44 on Jun. 12, 2017. At recent session, the prices were hovering between $19.39 and $20.14. This company shares are 13.58% off its target price of $22.08 and the current market capitalization stands at $7.07B. The recent change has given its price a 2.05% lead over SMA 50 and -35.74% deficit over its 52-week high. The stock witnessed 13.68% gains, -8.9% declines and -25.43% declines for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found DISCA’s volatility during a week at 4.86% and during a month it has been found around 4.08%.

Discovery Communications, Inc. (NASDAQ:DISCA) Intraday Metrics

Discovery Communications, Inc. (DISCA) exchanged hands at an unexpectedly high level of 5.96 million shares over the course of the day. Noting its average daily volume at 5.29 million shares each day over the month, this signifies a pretty significant change over the norm.

Discovery Communications, Inc. Target Levels

The market experts are predicting a 59.47% rally, based on the high target price ($31) for Discovery Communications, Inc. shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $15 range (lowest target price). If faced, it would be a -22.84% drop from its current position. Overall, the share price is down -29.08% year to date.

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