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Apache (APA) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Apache (APA) closed at $28.62 in the latest trading session, marking a -0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.42%.

Coming into today, shares of the oil and natural gas producer had lost 7.1% in the past month. In that same time, the Oils-Energy sector lost 1.46%, while the S&P 500 gained 2.2%.

Investors will be hoping for strength from APA as it approaches its next earnings release. On that day, APA is projected to report earnings of $0.22 per share, which would represent a year-over-year decline of 56%. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, down 12.4% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.03 per share and revenue of $6.97 billion, which would represent changes of -41.81% and -6.07%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for APA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.94% lower. APA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, APA is currently trading at a Forward P/E ratio of 27.73. This represents a premium compared to its industry's average Forward P/E of 11.35.

It is also worth noting that APA currently has a PEG ratio of 4.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.76 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 93, which puts it in the top 37% 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.

To follow APA in the coming trading sessions, be sure to utilize Zacks.com.

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