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 0.9%. By the end of trading, Apache Corporation fell $1.02 (-1.4%) to $72.73 on average volume. Throughout the day, 3.9 million shares of Apache Corporation exchanged hands as compared to its average daily volume of 3.3 million shares. The stock ranged in price between $72.20-$73.85 after having opened the day at $73.45 as compared to the previous trading day's close of $73.75. Other companies within the Basic Materials sector that declined today were: GMX Resources ( GMXR), down 18.4%, Northern Dynasty Minerals ( NAK), down 13.6%, Hecla Mining Company ( HL), down 12.3%, and Golden Minerals ( AUMN), down 12%.
  • 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 $29.06 billion and is part of the energy industry. The company has a P/E ratio of 7.8, below the S&P 500 P/E ratio of 17.7. Shares are down 5.4% year to date as of the close of trading on Friday. Currently there are 13 analysts that rate Apache Corporation a buy, no analysts rate it a sell, and 10 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 revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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, Ferro ( FOE), up 30.8%, American Pacific Corporation ( APFC), up 9.6%, Gasco Energy ( GSX), up 9.1%, and American Vanguard Corporation ( AVD), up 8.6%, were all gainers within the basic materials sector with SandRidge Energy ( SD) 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.