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APA (APA) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, APA (APA - Free Report) closed at $45.09, marking a -0.16% move from the previous day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Heading into today, shares of the oil and natural gas producer had gained 1.05% over the past month, lagging the Oils-Energy sector's gain of 5.98% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from APA as it approaches its next earnings release, which is expected to be February 22, 2023. On that day, APA is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 45.74%. Meanwhile, our latest consensus estimate is calling for revenue of $2.51 billion, up 9.38% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for APA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 12.45% lower within the past month. APA is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, APA is currently trading at a Forward P/E ratio of 5.83. This represents a premium compared to its industry's average Forward P/E of 5.23.
We can also see that APA currently has a PEG ratio of 0.17. 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. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.2 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 233, putting it in the bottom 8% 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.
To follow APA in the coming trading sessions, be sure to utilize Zacks.com.