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 0.8%. By the end of trading, Apache Corporation fell $1.14 (-1.4%) to $81.89 on average volume. Throughout the day, 3,241,782 shares of Apache Corporation exchanged hands as compared to its average daily volume of 3,647,800 shares. The stock ranged in price between $80.85-$82.81 after having opened the day at $82.73 as compared to the previous trading day's close of $83.03. Other companies within the Basic Materials sector that declined today were: Crosshair Energy ( CXZ), down 20.8%, Cubic Energy ( QBC), down 17.3%, Tasman Metals ( TAS), down 15.1% and Lake Shore Gold ( LSG), down 14.4%.
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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 $32.6 billion and is part of the energy industry. The company has a P/E ratio of 17.8, above the S&P 500 P/E ratio of 17.7. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 5.8% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Apache Corporation a buy, no analysts rate it a sell, and 12 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, attractive 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, New Concept Energy ( GBR), down 25.7%, Cal Dive International ( DVR), down 19.4%, L & L Energy ( LLEN), down 15.4% and Ikonics Corporation ( IKNX), down 14.4% , were all gainers within the basic materials sector with Southwestern Energy Company ( SWN) 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).

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