APA Corporation Sees Minor Gains in Recent Trading, Eyes Upcoming Earnings Report

On the latest trading day, APA (APA) closed at $25.16, showing a gain of 0.96% from the previous session. This change outpaced the S&P 500’s daily increase of 0.4%. For context, the Dow edged up by 0.09%, while the Nasdaq, which focuses on technology, grew by 0.63% as well.

Recent Performance Highlights

Before today, APA shares had dropped by 1.74% over the past month. This decline was more favorable compared to the Oils-Energy sector, which saw a 7.82% loss, while the S&P 500 gained 3.76% in the same timeframe.

Upcoming Earnings Announcement

Investors are eagerly anticipating APA’s financial results, set to be announced on November 6, 2024. Analysts predict earnings per share (EPS) of $1.06, representing a decrease of 20.3% compared to the same quarter last year. The expected revenue stands at $2.3 billion, indicating a slight decrease of 0.36% from the previous year’s quarter.

Yearly Estimates and Analyst Sentiment

For the full year, the Zacks Consensus Estimates forecast earnings of $4.04 per share and revenue of $9.08 billion. Such figures would reflect year-over-year changes of -10.82% for earnings and a positive 11.12% for revenue.

Importance of Analyst Revisions

Recent updates to analyst estimates for APA are essential for investors to consider. These changes often reflect business trends and influences on stock performance. Positive revisions typically suggest a stronger outlook for the company’s profitability.

Zacks Rank System Insights

Research shows that revisions in estimates strongly correlate with future stock performance. To help investors gauge this, Zacks has created a ranking system ranging from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 ranked stocks have outperformed, averaging a return of +25% annually since 1988. Currently, APA holds a Zacks Rank of #5 (Strong Sell) following a recent 0.11% downward shift in the consensus EPS estimate.

Understanding APA’s Valuation

From a valuation perspective, APA’s Forward P/E ratio is 6.17, which is below the industry average of 10.29. This suggests potential for undervaluation compared to peers within the sector.

Industry Context

APA operates within the Oil and Gas – Exploration and Production – United States sector, presently holding a Zacks Industry Rank of 237. This rank places it in the bottom 6% of over 250 industries assessed, highlighting challenges faced by the sector.

Using Zacks to Track Performance

Investors can use Zacks.com to keep an eye on metrics that may affect stock performance in the upcoming sessions.

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APA Corporation (APA): Free Stock Analysis Report

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The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.