Occidental Petroleum Is Crushing the Market in 2026. Is It the Smartest Buy Right Now?

By Keith Speights – Apr 17, 2026 at 4:40AM ESTKey PointsOccidental Petroleum's shares have soared due to the war with Iran.The stock has outperformed many of its peers for several reasons, including its ties with Berkshire Hathaway.However, Occidental's impressive run has driven its valuation to a lofty level.Occidental Petroleum (OXY +1.86%) is crushing the market so far this year. Shares of the oil and gas producer have skyrocketed nearly 40%, even with a pullback over the last few weeks. Meanwhile, the S&P 500 (^GSPC +0.26%) index has clawed its way back to a low single-digit percentage gain. Most energy stocks have moved significantly higher in 2026. Occidental, though, ranks among the biggest winners year to date. But is it the smartest stock to buy right now? ExpandNYSE: OXYOccidental PetroleumToday's Change(1.86%) $1.04Current Price$56.87Key Data PointsMarket Cap$56BDay's Range$55.61 - $57.0552wk Range$38.36 - $67.45Volume77KAvg Vol17MGross Margin31.94%Dividend Yield1.72% Why Occidental is winning The easy answer for why Occidental's shares have performed so well this year is the U.S. war with Iran. The conflict has rattled global energy markets, driving up demand for U.S. oil and gas. As a major producer in the Permian Basin, the Rocky Mountain region, and the Gulf of Mexico, Occidental has been an immediate beneficiary of the Middle East supply disruption. However, the Iran war has helped most energy stocks. Why has Occidental risen more than its peers? I think four reasons stand out in particular. First, Occidental's fortunes hinge more on oil prices than giant integrated oil companies such as Chevron (CVX +1.75%) and ExxonMobil (XOM +1.99%). Second, Oxy is producing record levels of oil -- 1,434 Mboed (thousand barrels of oil equivalent per day). The other two factors behind Occidental's appeal to investors are directly related to Berkshire Hathaway (BRKA +0.21%) (BRKB +0.22%). In January, Berkshire bought OxyChem for $9.7 billion. This deal enabled Occidental to slash its debt, thereby greatly improving the company's balance sheet. Berkshire Hathaway also owns a 26.7% stake in Oxy. Such a stamp of approval from Warren Buffett can do wonders for any stock. Image source: Getty Images. The smartest choice for investors? Do all of these positives make Occidental Petroleum's stock the smartest choice for investors? Not necessarily. It's also important to consider valuation. After its impressive run, Occidental's shares trade at roughly 40 times forward earnings, well above most of its peers. Wall Street appears hesitant to buy the stock, too. Of the 26 analysts surveyed by S&P Global (SPGI +1.44%) in April, eight rated Occidental as a "buy" or "strong buy." Fifteen analysts recommended holding Oxy. The remaining three analysts rated the stock as an "underperform" or "sell." I don't think Occidental's high multiple is a reason for long-term investors to sell the oil stock. However, I don't view the stock as the smartest pick for investors. Other stocks (including some in the energy sector) offer better risk-reward propositions than Occidental does right now. Read NextApr 14, 2026 •By Billy DubersteinWhy Occidental Petroleum Fell TodayApr 13, 2026 •By Ryan VanzoOccidental Petroleum Is Getting a New CEO in 2026. Here's What Investors Can Expect From Richard Jackson Once Vicki Hollub Retires.Apr 13, 2026 •By Keith SpeightsPrediction: Occidental Petroleum Stock Is a Buy Before May 6Apr 10, 2026 •By Leo SunThe Energy Rally Has Cooled for Occidental Petroleum. Here's Whether to Buy the Dip.Apr 9, 2026 •By Bram BerkowitzOccidental Petroleum Just Discovered Oil in an Exploratory Well Off the Gulf of America. Here Are 2 More Stocks That Could Soar as a Result.Apr 8, 2026 •By Matt DiLalloHere's What Could Happen to These 2 Oil Stocks if the Iran War Ceasefire HoldsAbout the AuthorKeith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.TMFFishBizStocks MentionedOccidental PetroleumNYSE: OXY$56.80(+1.74%)+$0.97Berkshire HathawayNYSE: BRKA$712,700.00(+0.21%)+$1,465.47Berkshire HathawayNYSE: BRKB$475.10(+0.21%)+$1.01S&P 500 IndexSNPINDEX: ^GSPC$7,041.28(+0.26%)+$18.33ChevronNYSE: CVX$187.98(+1.66%)+$3.07ExxonMobilNYSE: XOM$151.98(+1.99%)+$2.97S&P GlobalNYSE: SPGI$436.79(+1.44%)+$6.21*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.