Occidental Petroleum (OXY) stuck in a ascending broadening wedge

OXY has a trailing twelve month Price to Earnings (PE) ratio of 8.4. The historical average of roughly 15 shows a good value for OXY stock as investors are paying lower share prices relative to the company's earnings. OXY's low trailing PE ratio shows that the firm has been trading below its fair market value recently. Its trailing 12-month earnings per share (EPS) of 6.90 more than justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings.