Rating Change #2
Apache Corporation (APA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, expanding profit margins, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- APA's revenue growth has slightly outpaced the industry average of 36.2%. Since the same quarter one year prior, revenues rose by 40.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- APACHE CORP has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APACHE CORP turned its bottom line around by earning $8.50 versus -$0.92 in the prior year. This year, the market expects an improvement in earnings ($11.88 versus $8.50).
- The gross profit margin for APACHE CORP is currently very high, coming in at 77.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.40% significantly outperformed against the industry average.
- Net operating cash flow has increased to $2,447.00 million or 42.70% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 29.70%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 28.7% when compared to the same quarter one year prior, rising from $778.27 million to $1,002.00 million.
Apache Corporation, together with its subsidiaries, operates as an independent energy company. It engages in the exploration, development, and production of natural gas, crude oil, and natural gas liquids (NGLs). The company has a P/E ratio of 9.5, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Apache has a market cap of $37.27 billion and is part of the basic materials sector and energy industry. Shares are up 9.1% year to date as of the close of trading on Tuesday.You can view the full Apache Ratings Report or get investment ideas from our investment research center.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV