Apache Corporation (APA): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Apache Corporation ( APA) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.5%. By the end of trading, Apache Corporation fell $1.02 (-1.2%) to $84.36 on average volume. Throughout the day, 3.3 million shares of Apache Corporation exchanged hands as compared to its average daily volume of three million shares. The stock ranged in price between $84.21-$86.35 after having opened the day at $85.49 as compared to the previous trading day's close of $85.38. Other companies within the Basic Materials sector that declined today were: BMB Munai ( BMBM), down 18%, Ossen Innovation ( OSN), down 13.1%, Jaguar Mining ( JAG), down 9.7%, and GeoGlobal Resources ( GGR), down 7.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. Apache Corporation has a market cap of $32.76 billion and is part of the energy industry. The company has a P/E ratio of 13.4, below the S&P 500 P/E ratio of 17.7. Shares are up 6.7% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate Apache Corporation a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Apache Corporation as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

On the positive front, Copano Energy ( CPNO), up 14.8%, Polymet Mining ( PLM), up 9.8%, Cubic Energy ( QBC), up 9.1%, and Atlatsa Resources ( ATL), up 8.1%, were all gainers within the basic materials sector with Helmerich & Payne ( HP) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

General Electric Booted From Dow, Replaced by Walgreens

General Electric Booted From Dow, Replaced by Walgreens