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APA (APA) Gains As Market Dips: What You Should Know

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In the latest trading session, APA (APA - Free Report) closed at $34.95, marking a +0.81% move from the previous day. The stock outpaced the S&P 500's daily loss of 2.11%. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Prior to today's trading, shares of the oil and natural gas producer had lost 11.35% over the past month. This has was narrower than the Oils-Energy sector's loss of 11.61% and lagged the S&P 500's loss of 8.19% in that time.

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 $2.56 per share, which would represent year-over-year growth of 161.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.76 billion, up 67.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.81 per share and revenue of $11.22 billion. These totals would mark changes of +151.54% and +43.44%, respectively, from last year.

Any recent changes to analyst estimates for APA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 3.89% higher. APA is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note APA's current valuation metrics, including its Forward P/E ratio of 3.54. This valuation marks a discount compared to its industry's average Forward P/E of 4.5.

Meanwhile, APA's PEG ratio is currently 0.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. APA's industry had an average PEG ratio of 0.21 as of yesterday's close.

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 28, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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