Apache (APA), one of the largest independent oil-and-gas exploration and production companies in the world, is one of six of Barclays' energy picks.
With a market value of about $46 billion, Apache still manages to go toe-to-toe with some of the oil industry's giants 10 times its size. Apache went on an acquisition binge that built up its backlog of developed sites and created a balanced portfolio of onshore and offshore oil and gas properties throughout the world.In the first quarter, earnings surged 61% to $1.13 billion, or $2.86 per share. Barclays' analysts say "we believe Apache has successfully 'reloaded' its development portfolio in 2010 with about $12 billion in acquisitions. Production mix remains attractive with almost 50% liquids and another roughly 20% international gas. Discounted valuation is compelling, and strong performance could help the multiple converge toward the group average." Apache's shares are currently trading at $123, about 27% below Barclays' price target of $157 set April 29. The stock is up 7.6% this year and 31% over the past 12 months.
Qualcomm (QCOM) is one of seven of Barclays' technology stock picks. The company develops and licenses wireless technology and makes semiconductors for mobile phones. The company's key patents are based on code division multiple access (CDMA) technology, which is a standard in wireless communications and is licensed by most major handset makers. Barclays' analysts say: "We believe Qualcomm may be well-positioned to benefit from secular growth trends in mobile data, with impressive positioning in its licensing and chipset businesses; leverage to the accelerated global embrace of smartphones, 3G and connected devices; and commitment to delivering double-digit revenue and earnings growth for the next five years." The company is in good financial shape, as it has a solid balance sheet with about $18 billion in cash and investments, and strong cash-flow generation. Qualcomm shares are up 15% this year and 54% over the past year. The stock is trading at $56 now, a 14% discount to Barclays' target price of $64 set April 21.
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