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APA (APA) Outpaces Stock Market Gains: What You Should Know
APA (APA - Free Report) closed the most recent trading day at $45.73, moving +0.82% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq gained 7.26%.
Heading into today, shares of the oil and natural gas producer had lost 1.2% over the past month, lagging the Oils-Energy sector's gain of 4.55% and the S&P 500's gain of 5.73% in that time.
APA will be looking to display strength as it nears its next earnings release, which is expected to be February 22, 2023. The company is expected to report EPS of $1.55, up 20.16% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 2.23% from the year-ago period.
Investors should also note any recent changes to analyst estimates for APA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 21.2% lower within the past month. APA is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, APA is currently trading at a Forward P/E ratio of 6.51. This represents a premium compared to its industry's average Forward P/E of 5.63.
We can also see that APA currently has a PEG ratio of 0.19. 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. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.23 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 244, which puts it in the bottom 4% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.