Anadarko Petroleum (APC) closed at $71.77 in the latest trading session, marking a +0.52% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.51%, and the Nasdaq, a tech-heavy index, added 0.21%.
Prior to today's trading, shares of the oil company had gained 60.45% over the past month. This has outpaced the Oils-Energy sector's gain of 0.47% and the S&P 500's gain of 4.65% in that time.
APC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.30, down 42.31% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.99 billion, down 1.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2 per share and revenue of $12.96 billion, which would represent changes of -11.5% and -3.12%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for APC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 22.12% higher. APC is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, APC is currently trading at a Forward P/E ratio of 35.62. This valuation marks a premium compared to its industry's average Forward P/E of 13.89.
Also, we should mention that APC has a PEG ratio of 6.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 1.04 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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