Opinions The Panic-Proof Portfolio (Stockchase Research)
APA CorporationAPATOP PICKMay 26, 2026
Stock price when the opinion was issued
As of Jun 01, 2026. Market Open.
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Premium contentPremium contentPremium contentPremium contentPremium contentPremium 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 contentPremium 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)
We reiterate APA as a TOP PICK. Energy is on the forefront of market interests and the company is well established in the low-cost Permian basin with some international and longer term assets yet to be developed. It trades at 9x earnings, under 2x book and supports a ROE of 20%. We continue to recommend a stop at $34, looking to achieve $45 -- upside potential of 18%. Yield 2.5%
(Analysts’ price target is $41.36)