Equifax (EFX) is the stock to watch after shares lost 8.47% on Thursday. The stock dropped after Fair Isaac (also known as FICO) sought ways to bypass Equifax, TransUnion (TRU), and Experian (EXPN).
FICO’s shift would enable the firm to pass down up to 50% less in score reports.
Occidental Petroleum (OXY) lost 7.31% to close at $44.23. Shareholders do not get a good deal from Berkshire Hathaway’s (BRK-B) proposal to buy the OxyChem unit. Occidental agreed to sell OxyChem, a chemicals unit, to Berkshire for $9.7 billion. It would use the proceeds to cut down its debt and to lower operating costs. Unfortunately, the company is selling its prized asset at the bottom of the cycle. After heavy expenses in the unit, Occidental would not realize the strong free cash flow growth when the business rebounds.
AES is giving back some of its recent gains. The stock jumped from below $13 to as high as over $15. It closed at $14.29 on Thursday, down 7.03%. Speculators bet that AES would fetch $18 a share if BlackRock’s Global Infrastructure Partners were to acquire the utility firm.
At $18, AES would have a buyout price of 8 times price-to-earnings in 2026. A bid is hardly guaranteed. AES has around $26.5 billion in long-term recourse debt.
