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Should You Get Rid of Apache (APA) Now?

Zacks Equity Research

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Apache Corporation APA, which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in APA.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen three estimates moving down in the past 30 days, compared with just one upward revision. This trend has caused the consensus estimate to trend lower, going from $2.01 a share a month ago to its current level of $1.96.

Also, for the current quarter, Apache has seen two downward estimate revisions versus no revision in the opposite direction, dragging the consensus estimate down to 48 cents a share from 55 cents over the past 30 days.   

The stock also has seen some pretty dismal trading lately, as the share price has dropped 16.5% in the past month.

Apache Corporation Price and Consensus

Apache Corporation Price and Consensus | Apache Corporation Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.

If you are still interested in the Oil and Gas – Exploration and Production industry, you may instead consider a better-ranked stock - Bonanza Creek Energy, Inc. BCEI. The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Bonanza Creek Energy, Inc. (BCEI) : Free Stock Analysis Report
 
Apache Corporation (APA) : Free Stock Analysis Report
 
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Zacks Investment Research