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Here's Why APA (APA) Fell More Than Broader Market
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In the latest trading session, APA (APA - Free Report) closed at $44.79, marking a -5.53% move from the previous day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the oil and natural gas producer had gained 11.91% over the past month, outpacing the Oils-Energy sector's gain of 3.72% and the S&P 500's loss of 2.43%.
The upcoming earnings release of APA will be of great interest to investors. In that report, analysts expect APA to post earnings of $1.18 per share. This would mark year-over-year growth of 26.88%. In the meantime, our current consensus estimate forecasts the revenue to be $2.17 billion, indicating a 7.48% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.7 per share and revenue of $8.94 billion, which would represent changes of +51.19% and -3.02%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for APA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 8.55% higher. APA is currently a Zacks Rank #3 (Hold).
In terms of valuation, APA is currently trading at a Forward P/E ratio of 8.32. Its industry sports an average Forward P/E of 10.31, so one might conclude that APA is trading at a discount comparatively.
It is also worth noting that APA currently has a PEG ratio of 0.83. 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. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.83 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why APA (APA) Fell More Than Broader Market
In the latest trading session, APA (APA - Free Report) closed at $44.79, marking a -5.53% move from the previous day. This change lagged the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 1.21%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Heading into today, shares of the oil and natural gas producer had gained 11.91% over the past month, outpacing the Oils-Energy sector's gain of 3.72% and the S&P 500's loss of 2.43%.
The upcoming earnings release of APA will be of great interest to investors. In that report, analysts expect APA to post earnings of $1.18 per share. This would mark year-over-year growth of 26.88%. In the meantime, our current consensus estimate forecasts the revenue to be $2.17 billion, indicating a 7.48% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.7 per share and revenue of $8.94 billion, which would represent changes of +51.19% and -3.02%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for APA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 8.55% higher. APA is currently a Zacks Rank #3 (Hold).
In terms of valuation, APA is currently trading at a Forward P/E ratio of 8.32. Its industry sports an average Forward P/E of 10.31, so one might conclude that APA is trading at a discount comparatively.
It is also worth noting that APA currently has a PEG ratio of 0.83. 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. The average PEG ratio for the Oil and Gas - Exploration and Production - United States industry stood at 0.83 at the close of the market yesterday.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 104, this industry ranks in the top 43% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.