Occidental Petroleum stock soars 61% in a year despite revenue decline
Occidental Petroleum (OXY) stock has climbed sharply over the past year, rising 23.1% since late February. The company's shares now trade at around $65.32, marking a 43.6% jump since mid-February. This surge follows broader market trends tied to oil prices and investor strategies like covered calls. The stock's strong performance began after Russia's invasion of Ukraine in February 2022. By March 2026, OXY reached approximately $65, delivering a one-year gain of 61.88%. Year-to-date, it has risen 58.85%, despite falling revenues—from $36.6 billion in 2022 to $21.6 billion in 2025—due to lower commodity prices.
OXY's price moves closely with West Texas Intermediate oil, reinforcing its volatility. On Friday, shares closed up 1.49%, continuing the upward trend. Analysts, however, consider the stock overvalued, with average price targets of $59.11 and $60.28. For investors, selling out-of-the-money covered calls offers short-term gains. The May 1, 2026, options chain shows a $70.00 call contract with a $1.80 midpoint premium, yielding 2.76% over a month. A $73.00 call contract, with a $1.12 premium, implies a 1.715% one-month return.
OXY's stock has surged alongside oil market shifts, rewarding investors with significant gains. While analysts caution about overvaluation, strategies like covered calls provide immediate income opportunities. The stock's trajectory remains tied to oil prices and broader energy sector movements.
