Energy stocks are still cheap. These 13 make effective use of stock buybacks.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2024
0mins
Should l Buy APA?
Source: MarketWatch
Stock Market Performance: Following Donald Trump's re-election, the S&P 500 saw a modest increase of 3% in early November, driven by expectations of a favorable regulatory environment and declining interest rates, particularly benefiting the financial sector.
Energy Sector Outlook: The energy sector has underperformed compared to the broader market over the past two years but is considered undervalued relative to expected earnings, making it an attractive option for long-term investors focusing on efficiency and shareholder returns.
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Analyst Views on APA
Wall Street analysts forecast APA stock price to fall
19 Analyst Rating
4 Buy
10 Hold
5 Sell
Hold
Current: 41.320
Low
21.00
Averages
26.17
High
40.00
Current: 41.320
Low
21.00
Averages
26.17
High
40.00
About APA
APA Corporation is an independent energy company. The Company owns subsidiaries that explore for and produce oil and natural gas in the United States, Egypt, and the United Kingdom, and that explore for oil and natural gas offshore Suriname. The Company’s upstream business has oil and gas operations in three geographic areas: the United States, Egypt and offshore the United Kingdom in the North Sea (North Sea). It also has active exploration and appraisal operations ongoing in Suriname, as well as interests in Uruguay and other international locations. It maintains a diversified asset portfolio, including conventional and unconventional, onshore and offshore, oil and natural gas exploration and production interests. In the United States, operations are primarily focused on the Permian Basin of West Texas. The Company has conventional onshore assets in Egypt’s Western Desert, and offshore assets on the United Kingdom’s Continental Shelf.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
APA Corp. Discovers New Natural Gas in Egypt
- New Gas Discovery: APA Corp. has made a new natural gas discovery in Egypt's Western Desert with the SKAL-1X exploratory well, showing preliminary production rates of 26 million cubic feet per day and 2,700 barrels per day of condensate, significantly enhancing the company's resource base.
- Accelerated Production Potential: The discovery is located near existing infrastructure and production facilities, which is expected to accelerate the production launch while reducing capital expenditures, thereby improving the company's operational efficiency and profitability in the region.
- Collaborative Development Progress: This discovery marks the latest achievement in the collaboration between APA Corp. and the state-owned Egyptian General Petroleum Corp. to develop gas resources, following last November's discovery from the Gomana-1 exploration well, further solidifying their partnership.
- Optimistic Market Outlook: With the increasing global demand for natural gas, APA Corp.'s discovery in Egypt is poised to enhance its market competitiveness and potentially provide strong support for future investments and expansion.
See More
U.S. Stocks Plummet Amid Rising Oil Prices and Iran Negotiation Concerns
- Nasdaq Index Plunge: The Nasdaq 100 experienced its worst one-day drop since October, while the S&P 500 and Nasdaq Composite recorded their worst performance since January 20, indicating heightened market concerns over economic outlook.
- Sector Performance Divergence: Tech stocks have fallen 15.5% from their October highs, whereas the energy sector has risen 10.5% since the onset of the Iran conflict, suggesting a potential reevaluation of asset allocation by investors based on sector resilience.
- Oversold Stocks: Only five stocks in the Nasdaq 100 are considered 'oversold' with an RSI of 30, indicating a bearish market sentiment that may lead to selling pressure, particularly affecting well-known companies like Microsoft and Disney.
- Cruise Line Performance Decline: Carnival Cruise Line's shares have dropped 17.6% over the past three months and 25% since the February 6 high, reflecting a sluggish recovery in the travel industry that could undermine future investor confidence.
See More
US Stocks Plunge Amid Soaring Oil Prices
- Market Weakness: The S&P 500 index fell by 1.74%, the Dow Jones Industrial Average dropped by 1.01%, and the Nasdaq 100 hit a 6.5-month low, reflecting investor concerns about future economic prospects amid rising oil prices.
- Surging Oil Prices: WTI crude oil prices surged over 4% due to reports of potential military action against Iran by the Pentagon, which heightened inflation expectations and increased pressure on the stock market.
- Strong Labor Market Data: Initial jobless claims rose by 5,000 to 210,000, in line with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, indicating labor market strength that could influence Federal Reserve policy.
- International Economic Impact: The OECD raised its G-20 inflation forecast for 2026 to 4.0%, reflecting the potential global economic impact of the Iran war, with increasing market concerns about escalating tensions in the Middle East that could disrupt global supply chains.
See More
Iran Conflict and U.S. Shale Production Surge Prompt Oil Giants to Explore Distant Markets
- Oil and Gas Companies' Strategy: Companies in the oil and gas sector are increasingly looking for new opportunities beyond the U.S. market.
- Impact of Global Events: The ongoing war in Iran is expected to further accelerate the search for resources in distant regions.
See More
Applovin Shares Plunge 41.4% Year-to-Date
- Poor Stock Performance: Applovin's shares are down 9.5% today, making it the worst performer in the S&P 500, indicating market concerns about its future prospects, which could undermine investor confidence.
- Disappointing Year-to-Date: Year-to-date, Applovin's stock has plummeted 41.4%, reflecting significant challenges the company faces in a competitive market environment, potentially leading to capital outflows and valuation declines.
- Other Component Movements: In contrast, Lam Research's stock fell 5.3%, while APA's shares rose 2.6%, highlighting differing market reactions to various companies, which may influence investor asset allocation decisions.
- Market Sentiment Fluctuations: Today's increased market volatility, particularly Applovin's performance, may draw attention to the entire tech sector, prompting investors to carefully assess risks and opportunities.
See More
Meta Faces New Lawsuit with $6 Million in Damages
- Meta Lawsuit Loss: Meta was found negligent in a social media addiction case in Los Angeles, resulting in $3 million in compensatory damages, with 70% borne by Meta and 30% by YouTube, highlighting the legal risks social media platforms face.
- Punitive Damages: Additionally, Meta must pay $2.1 million in punitive damages, which, while not substantial for the company, could set legal precedents for future similar cases, potentially impacting its reputation and operational strategies.
- Strong Energy Stock Performance: Since February 28, APA Corp's stock has surged 36%, reaching a 30-month high, indicating strong market demand for energy stocks amid geopolitical tensions.
- Coca-Cola CEO Departure: Coca-Cola's CEO James Quincey will leave on March 31, with the stock rising 75% since he took over in May 2017, significantly outperforming the S&P Consumer Staples index, although shares have recently fallen 8% from last month's peak.
See More
APA Corp. Discovers New Natural Gas in Egypt
- New Gas Discovery: APA Corp. has made a new natural gas discovery in Egypt's Western Desert with the SKAL-1X exploratory well, showing preliminary production rates of 26 million cubic feet per day and 2,700 barrels per day of condensate, significantly enhancing the company's resource base.
- Accelerated Production Potential: The discovery is located near existing infrastructure and production facilities, which is expected to accelerate the production launch while reducing capital expenditures, thereby improving the company's operational efficiency and profitability in the region.
- Collaborative Development Progress: This discovery marks the latest achievement in the collaboration between APA Corp. and the state-owned Egyptian General Petroleum Corp. to develop gas resources, following last November's discovery from the Gomana-1 exploration well, further solidifying their partnership.
- Optimistic Market Outlook: With the increasing global demand for natural gas, APA Corp.'s discovery in Egypt is poised to enhance its market competitiveness and potentially provide strong support for future investments and expansion.
See More
U.S. Stocks Plummet Amid Rising Oil Prices and Iran Negotiation Concerns
- Nasdaq Index Plunge: The Nasdaq 100 experienced its worst one-day drop since October, while the S&P 500 and Nasdaq Composite recorded their worst performance since January 20, indicating heightened market concerns over economic outlook.
- Sector Performance Divergence: Tech stocks have fallen 15.5% from their October highs, whereas the energy sector has risen 10.5% since the onset of the Iran conflict, suggesting a potential reevaluation of asset allocation by investors based on sector resilience.
- Oversold Stocks: Only five stocks in the Nasdaq 100 are considered 'oversold' with an RSI of 30, indicating a bearish market sentiment that may lead to selling pressure, particularly affecting well-known companies like Microsoft and Disney.
- Cruise Line Performance Decline: Carnival Cruise Line's shares have dropped 17.6% over the past three months and 25% since the February 6 high, reflecting a sluggish recovery in the travel industry that could undermine future investor confidence.
See More
US Stocks Plunge Amid Soaring Oil Prices
- Market Weakness: The S&P 500 index fell by 1.74%, the Dow Jones Industrial Average dropped by 1.01%, and the Nasdaq 100 hit a 6.5-month low, reflecting investor concerns about future economic prospects amid rising oil prices.
- Surging Oil Prices: WTI crude oil prices surged over 4% due to reports of potential military action against Iran by the Pentagon, which heightened inflation expectations and increased pressure on the stock market.
- Strong Labor Market Data: Initial jobless claims rose by 5,000 to 210,000, in line with expectations, while continuing claims fell by 32,000 to a 1.75-year low of 1.819 million, indicating labor market strength that could influence Federal Reserve policy.
- International Economic Impact: The OECD raised its G-20 inflation forecast for 2026 to 4.0%, reflecting the potential global economic impact of the Iran war, with increasing market concerns about escalating tensions in the Middle East that could disrupt global supply chains.
See More
Iran Conflict and U.S. Shale Production Surge Prompt Oil Giants to Explore Distant Markets
- Oil and Gas Companies' Strategy: Companies in the oil and gas sector are increasingly looking for new opportunities beyond the U.S. market.
- Impact of Global Events: The ongoing war in Iran is expected to further accelerate the search for resources in distant regions.
See More
Applovin Shares Plunge 41.4% Year-to-Date
- Poor Stock Performance: Applovin's shares are down 9.5% today, making it the worst performer in the S&P 500, indicating market concerns about its future prospects, which could undermine investor confidence.
- Disappointing Year-to-Date: Year-to-date, Applovin's stock has plummeted 41.4%, reflecting significant challenges the company faces in a competitive market environment, potentially leading to capital outflows and valuation declines.
- Other Component Movements: In contrast, Lam Research's stock fell 5.3%, while APA's shares rose 2.6%, highlighting differing market reactions to various companies, which may influence investor asset allocation decisions.
- Market Sentiment Fluctuations: Today's increased market volatility, particularly Applovin's performance, may draw attention to the entire tech sector, prompting investors to carefully assess risks and opportunities.
See More
Meta Faces New Lawsuit with $6 Million in Damages
- Meta Lawsuit Loss: Meta was found negligent in a social media addiction case in Los Angeles, resulting in $3 million in compensatory damages, with 70% borne by Meta and 30% by YouTube, highlighting the legal risks social media platforms face.
- Punitive Damages: Additionally, Meta must pay $2.1 million in punitive damages, which, while not substantial for the company, could set legal precedents for future similar cases, potentially impacting its reputation and operational strategies.
- Strong Energy Stock Performance: Since February 28, APA Corp's stock has surged 36%, reaching a 30-month high, indicating strong market demand for energy stocks amid geopolitical tensions.
- Coca-Cola CEO Departure: Coca-Cola's CEO James Quincey will leave on March 31, with the stock rising 75% since he took over in May 2017, significantly outperforming the S&P Consumer Staples index, although shares have recently fallen 8% from last month's peak.
See More
