APA Corporation (APA:NSD) Analysts rate with a Strong Buy

STA Research
by: STA Research
APA Corporation

Barclays Capital just recently initiated the company’s stock with a Overweight rating, with a 12 month target of $53.

The analyst target price for APA Corporation over the next 12 months is USD 41.17, based on 13 analyst’s APA Corporation stock estimates. The average analyst recommendation for APA Corporation is Strong Buy. The stock analysis of APA Corporation by Stock Target Advisor is Neutral, with 8 positive signs and 7 negative signals. The stock price of APA Corporation was USD 43.61 at the latest close. The stock price of APA Corporation has moved by +2.80% in the last week, +4.56% in the last month, and +140.41 percent in the last year.

APA Corporation explores for, develops, and produces oil and gas properties through its subsidiaries. It operates in the United States, Egypt, and the United Kingdom, as well as offshore Suriname, where it conducts exploration. The company also owns four Permian-to-Gulf Coast pipelines and operates gathering, processing, and transmission assets in West Texas. APA Corporation is situated in Houston, Texas, and was formed in 1954. 77056-4000, 2000 Post Oak Boulevard, Houston, TX, United States

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Underpriced on a cashflow basis

APA Corporation stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

APA Corporation stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

APA Corporation stock is trading high compared to its peers’ median on a price to book value basis.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

APA Corporation stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.