On December 31, 2024, Dodge & Cox (Trades, Portfolio) executed a notable transaction involving Occidental Petroleum Corp (OXY, Financial). The firm added 6,244,274 shares to its holdings, marking an 8.00% increase in its position at a trade price of $49.41 per share. This strategic move underscores Dodge & Cox (Trades, Portfolio)'s commitment to investing in undervalued companies with promising long-term prospects. The transaction has increased the firm's total shares in Occidental Petroleum to 84,255,322, representing 8.80% of the firm's holdings.

About Dodge & Cox (Trades, Portfolio)

Founded in 1930 by Van Duyn Dodge and E. Morris Cox, Dodge & Cox (Trades, Portfolio) is renowned for its team research approach in making investment decisions. The firm emphasizes long-term ownership of undervalued companies, steering clear of popular choices that lack superior relative value. The investment decisions are made by the Investment Policy Committees, ensuring continuity in the firm's investing philosophy, research, and culture. Dodge & Cox (Trades, Portfolio)'s top holdings include Fiserv Inc (FI, Financial), Johnson Controls International PLC (JCI, Financial), Charles Schwab Corp (SCHW, Financial), RTX Corp (RTX, Financial), and Wells Fargo & Co (WFC, Financial). The firm manages an equity portfolio valued at $171.84 billion, with a significant focus on the healthcare and financial services sectors.

Overview of Occidental Petroleum Corp

Occidental Petroleum is an independent exploration and production company with operations spanning the United States, Latin America, and the Middle East. As of the end of 2023, the company reported net proved reserves of nearly 4 billion barrels of oil equivalent. The company's operations are divided into segments such as chemical, corporate and eliminations, midstream and marketing, and oil and gas. Occidental Petroleum's market capitalization stands at $44.93 billion, with a price-to-earnings ratio of 12.47. The stock is considered modestly undervalued, with a GF Value of $54.49, indicating a price to GF Value ratio of 0.88.

Impact of the Transaction

The recent acquisition by Dodge & Cox (Trades, Portfolio) has increased Occidental Petroleum's position in the firm's portfolio to 2.35%. This move reflects the firm's confidence in Occidental Petroleum's potential for capital appreciation, given its undervaluation and long-term earnings prospects. The transaction's impact on Dodge & Cox (Trades, Portfolio)'s portfolio is significant, as it aligns with the firm's strategy of investing in undervalued companies with strong growth potential.

Financial Metrics and Valuation

Occidental Petroleum's financial metrics reveal a company with a solid foundation. The stock has a GF Score of 73/100, suggesting likely average performance. The company's revenue growth over the past three years is 14.90%, with a balance sheet rank of 5/10 and a profitability rank of 6/10. The Piotroski F-Score is 4, and the Altman Z score is 1.46, indicating moderate financial health.

Performance and Growth Indicators

Occidental Petroleum's stock has experienced a year-to-date price change of -3.87%, with a momentum rank of 4/10. The company's interest coverage is 6.62, reflecting its ability to meet interest obligations. The growth rank is 4/10, and the GF Value Rank is 9/10, indicating strong potential for future growth.

Comparative Analysis with Other Gurus

In the realm of Occidental Petroleum's investors, Berkshire Hathaway Inc holds the largest share percentage. Other notable investors include Prem Watsa (Trades, Portfolio) and Smead Value Fund (Trades, Portfolio). Dodge & Cox (Trades, Portfolio)'s recent acquisition further solidifies its position among these prominent investors, highlighting the firm's strategic focus on undervalued opportunities in the oil and gas industry.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.