Why Occidental Petroleum, Callon Petroleum, and Kosmos Energy Rallied Over 70% Each in November
Shares of $14-billion-market-cap exploration and production company Occidental Petroleum (NYSE: OXY) rose a dramatic 72% in November, according to data from S&P Global Market Intelligence. That massive increase, however, was smaller than what relatively-tiny $740-million-market-cap offshore driller Kosmos Energy (NYSE: KOS) saw, with its stock rallying 77%. Even smaller Callon Petroleum (NYSE: CPE), with a $420 million market cap, witnessed a nearly-82% share price gain in the month. Those are astronomical numbers for such a short period of time -- but not a whole lot has actually changed at these energy companies.
The big story in November was the release of upbeat coronavirus vaccine news. Specifically, vaccine offerings from Pfizer and BioNTech, AstraZeneca, and Moderna all achieved high rates of success in fighting off the scourge behind the global pandemic. Investors, seeing these results, looked forward to a time when the world would move past the coronavirus. And thus names that were facing material headwinds because of COVID-19 rallied. To some degree that makes complete sense, but investors also have a habit of letting their emotions get ahead of the actual events taking place on the ground.
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Source Fool.com
