Occidental Petroleum (OXY) and Magnolia Oil & Gas (MGY) are falling 4% and 3%, respectively, after Goldman Sachs downgraded its ratings on the fossil fuel exploration firms. Why Goldman Downgraded OXY to Sell Goldman cut its rating on OXY to Sell from Neutral. The bank noted that oil prices have been stable recently. Additionally, Goldman expects OXY to underperform its peers because the bank believes that the company will be reluctant to repurchase its shares when oil prices decline. Further, Goldman does not expect OXY to repurchase its preferred stock for an extended period of time. A row of massive oil rigs in a desert landscape, against a setting sun. The bank slashed its price target on the name to $45 from $54. Why Goldman Downgraded MGY to Neutral Goldman does not expect MGY to reduce its operational costs over the next two years, and the bank expects the company to maintain its exploration costs below 55% of its EBITDAX going forward. Given these points, Goldman does not anticipate that there will be new, meaningful, positive catalysts for MGY stock in the foreseeable future. The bank also suggested that oil prices will remain relatively stable going forward. The Recent Price Action of OXY and MGY In the last month, OXY has dropped 7%, while it is down 5% in the last three months. In the last month, MGY is down 1%, while it has fallen 5% in the last three months. While we acknowledge the potential of OXY, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OXY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock Disclosure: None. This article is originally published at Insider Monkey.