Daily Traders Edge

3 Stocks Trading Near 52-Week Highs

August 03
10:05 2022

So far this year, the stock market has flashed more red signs than green due to various macroeconomic and geopolitical concerns. The immense volatility weighed heavily on equities and government bond yields.

The CBOE Volatility Index (VIX) gained 29.5% year-to-date.

However, the major stock indexes rose in the last trading session to end their best month since 2020, slashing some losses from a gloomy first half of the year. The S&P 500 gained 9.1% in July, while the Dow Jones Industrial Average rose 6.7%, reflecting their strongest month since November 2020. The Nasdaq Composite rose 12.4%, marking its best month since April 2020.

Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said, “We are seeing a relief rally in the stock market, as pessimism reached extreme levels, and as longer-term interest rates have been coming back down.”

Optimistic expectations from the upcoming earnings releases have also encouraged investors to take a breather from the idea of a slowing economy and further interest rate hikes.

Occidental Petroleum Corporation (OXY)Molina Healthcare, Inc. (MOH), and Greif, Inc. (GEF) are hovering near their 52-week highs and could be the ideal additions to your watchlist now given their strong fundamentals and momentum.

Occidental Petroleum Corporation (OXY)

OXY is engaged in acquiring, exploring, and developing oil and gas properties in the United States, Middle East, Africa, and Latin America.

The company operates through three segments: Oil and Gas, Chemical, Midstream, and Marketing. It develops, processes, transports, and markets oil and condensate, natural gas liquids (NGLs), and natural gas. It also manufactures basic chemicals.

On June 27, 2022, OXY’s subsidiary, 1PointFive, and Manulife Investment Management entered into a lease agreement for approximately 27,000 acres of timberland in Western Louisiana.

This agreement provides 1PointFive with access to subsurface pore space and surface rights to develop and operate a carbon sequestration hub, with access to permanently store industrial carbon emissions. This is expected to promote the company’s sustainability goals.

OXY’s net sales increased 57.7% year-over-year to $8.35 billion in the fiscal 2022 first quarter ended March 31, 2022. Its income from continuing operations rose 1,530.8% from the prior-year period to $4.88 billion.

The company’s adjusted income attributable to common stockholders and adjusted EPS came in at $2.13 billion and $2.12, up 1,664% and 1,513.3%, respectively, year-over-year.

The consensus EPS estimate of $3.03 for the second quarter (ended June 30, 2022) represents an 846.6% improvement year-over-year. The consensus revenue estimate of $9.81 billion for the to-be-reported quarter indicates a 63.2% increase from the same period last year.

The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.

Over the past year, the stock has gained 145.5% to close the last trading session at $65.75. It is currently trading 11.2% below its 52-week high of $74.04, which it hit on May 31, 2022.

OXY’s POWR Ratings reflect solid prospects. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

It has an A grade for Momentum and a B for Growth and Quality. It is ranked #38 out of 97 stocks in the B-rated Energy – Oil & Gas industry. Click here to learn more about POWR Ratings.

Continue Reading at INO.com

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