I'm Buying Occidental on This Dip -- Not Because of Oil, but Because of This
Occidental Petroleum isn't just a high oil price story, and that's a good thing for investors.
Overview
High oil prices are a classic tailwind for energy stocks. Thanks to the war in Iran, that's exactly the scenario investors are facing this year, as energy ranks as the best-performing group among the 11 sectors represented in the S&P 500.
Undoubtedly, surging crude prices are playing a pivotal role in the 47% year-to-date gain sported by Occidental Petroleum (NYSE: OXY) shares. Amid a rally like that, you can't count on a dip, but as of Sept. 4, the stock trades 11% below its 52-week high. By definition, that's a correction, but prospective investors should note the shares are up 7.1% over the past month. That may be a sign the correction won't deepen.
Details
As for reasons to buy this dip, oil prices help, but don't lose sight of Occidental's scorched-earth campaign to reduce debt and its efforts to reduce costs.
Source
Originally published at www.fool.com.