Opinions
The Panic-Proof Portfolio (Stockchase Research)
Apache Corp
APA-Q
TOP PICK
Aug 07, 2025
Stock price when the opinion was issued
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Premium contentThe 400,000 boed oil and gas producer with production in the US Permian, Egypt, and the North Sea recently reported a 42% increase in net income. It trades at 6x earnings, under 2x book and supports a robust 79% ROE. Its dividend is backed by a payout ratio under 15% of cash flow. We recommend setting a stop-loss at $22, looking to achieve $39 -- upside potential of 36%. Yield 3.7%
(Analysts’ price target is $39.08)Premium contentPremium contentIn recently reported earnings, APA indicated they expect operational efficiencies to result in $130 million in cost savings. The company has been prudently using cash reserves to aggressively retire debt and buy back shares -- all while providing a good dividend supported by a payout ratio under 50% of cash flow. It trades at 6x earnings, 1.1x book and supports a 25% ROE. We recommend setting a stop-loss at $13, looking to achieve $23 -- upside potential of 33%. Yield 5.8%
(Analysts’ price target is $22.89)Premium content
APA recently surprised analysts with revenues beating expectations by 26% and EPS beating by 93%. Revenues were over $500 million higher, allowing an aggressive amount of debt to be retired. It trades at 6x earnings, 1.2x book and supports a ROE of 26%. We recommend trailing up the stop (from $15.00) to $16.50, looking to achieve $23.50 -- upside potential of 20%. Yield 5.5%
(Analysts’ price target is $23.25)