APA (NASDAQ:APA) Stock Rating Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded APA from “Hold” to “Strong Buy” and raised several 2026–2028 earnings estimates, citing improved medium-term profitability expectations.
• Analyst sentiment remains mixed: APA has a consensus “Hold” rating and an average price target of $43.14, despite recent “Buy” ratings and targets as high as $62.
• APA authorized a 40 million-share repurchase program, while its latest quarter slightly missed earnings and revenue expectations. Institutional investors own approximately 83% of the stock.

APA (NASDAQ:APA - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Monday, Zacks reports. Zacks Research also issued estimates for APA's Q3 2026 earnings at $0.68 EPS, Q4 2026 earnings at $0.59 EPS, FY2026 earnings at $4.53 EPS, Q1 2027 earnings at $1.01 EPS, Q2 2027 earnings at $0.94 EPS, Q3 2027 earnings at $0.82 EPS, Q4 2027 earnings at $0.95 EPS, FY2027 earnings at $3.72 EPS, Q1 2028 earnings at $0.75 EPS, Q2 2028 earnings at $0.73 EPS, Q3 2028 earnings at $0.46 EPS and FY2028 earnings at $3.83 EPS.

A number of other brokerages have also weighed in on APA. Benchmark increased their target price on shares of APA from $40.00 to $46.00 and gave the stock a "buy" rating in a research report on Wednesday, August 12th. Wells Fargo & Company upped their price target on APA from $49.00 to $50.00 and gave the company an "equal weight" rating in a research report on Wednesday, September 2nd. Stifel Nicolaus began coverage on shares of APA in a report on Wednesday, September 9th. They issued a "buy" rating and a $62.00 price target on the stock. UBS Group raised their price objective on shares of APA from $41.00 to $47.00 and gave the company a "neutral" rating in a research report on Monday, September 14th. Finally, Morgan Stanley cut their price objective on APA from $44.00 to $41.00 and set an "underweight" rating for the company in a report on Friday, June 26th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $43.14.

APA Stock Performance

Shares of APA stock opened at $44.10 on Monday. The business's fifty day simple moving average is $42.08 and its 200 day simple moving average is $38.89. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.47. APA has a 12 month low of $21.63 and a 12 month high of $47.44. The firm has a market capitalization of $15.45 billion, a P/E ratio of 9.32, a price-to-earnings-growth ratio of 0.76 and a beta of 0.42.

APA (NASDAQ:APA - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $1.89 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.90 by ($0.01). The business had revenue of $2.37 billion for the quarter, compared to analysts' expectations of $2.46 billion. APA had a net margin of 19.48% and a return on equity of 24.84%. During the same period in the prior year, the business earned $0.87 earnings per share. As a group, analysts anticipate that APA will post 5.8 EPS for the current year.

APA announced that its Board of Directors has initiated a share repurchase program on Wednesday, September 16th that permits the company to repurchase 40,000,000 outstanding shares. This repurchase authorization permits the company to buy shares of its stock through open market purchases. Shares repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Hedge Funds Weigh In On APA

Hedge funds and other institutional investors have recently modified their holdings of the company. Parkside Financial Bank & Trust raised its holdings in APA by 9.8% during the second quarter. Parkside Financial Bank & Trust now owns 3,206 shares of the company's stock valued at $104,000 after acquiring an additional 285 shares during the period. Altshuler Shaham Ltd boosted its stake in shares of APA by 36.7% in the first quarter. Altshuler Shaham Ltd now owns 1,229 shares of the company's stock worth $52,000 after acquiring an additional 330 shares during the period. Rockefeller Capital Management L.P. grew its position in shares of APA by 0.4% during the fourth quarter. Rockefeller Capital Management L.P. now owns 106,667 shares of the company's stock worth $2,609,000 after purchasing an additional 375 shares in the last quarter. Waverly Advisors LLC raised its stake in APA by 4.3% during the 2nd quarter. Waverly Advisors LLC now owns 9,849 shares of the company's stock valued at $321,000 after purchasing an additional 405 shares during the period. Finally, Fortitude Family Office LLC lifted its holdings in APA by 37.9% in the 2nd quarter. Fortitude Family Office LLC now owns 1,489 shares of the company's stock worth $48,000 after purchasing an additional 409 shares in the last quarter. 83.01% of the stock is owned by institutional investors.

More APA News

Here are the key news stories impacting APA this week:

• Positive Sentiment: Zacks raised its estimates for APA’s third-quarter 2026 EPS to $0.68 from $0.66, fourth-quarter 2026 EPS to $0.59 from $0.53, and full-year 2026 EPS to $4.53 from $4.47. It also lifted full-year 2027 EPS to $3.72 from $3.59 and full-year 2028 EPS to $3.83 from $3.61, signaling improved expectations for medium-term profitability.
• Positive Sentiment: Additional quarterly increases included first-quarter 2027 EPS to $1.01 from $0.99, second-quarter 2027 EPS to $0.94 from $0.93, third-quarter 2027 EPS to $0.82 from $0.79, and fourth-quarter 2027 EPS to $0.95 from $0.88.
• Positive Sentiment: APA was included on Zacks’ October 6 list of Rank #1 (Strong Buy) value stocks, reinforcing the stock’s appeal to value-focused investors. Best Value Stocks to Buy for October 6th
• Positive Sentiment: Zacks also identified APA as a top-ranked value stock, highlighting its valuation profile for investors seeking potentially undervalued energy companies. APA Is a Top-Ranked Value Stock
• Neutral Sentiment: The current full-year consensus EPS estimate remains $5.80. The Zacks changes are analyst-model revisions rather than new company guidance, so investors may continue to focus on energy prices and APA’s upcoming operating results.
• Negative Sentiment: Zacks lowered its estimates for first-quarter 2028 EPS to $0.75 from $0.79, second-quarter 2028 EPS to $0.73 from $0.75, and third-quarter 2028 EPS to $0.46 from $0.60. These cuts point to some longer-term earnings pressure.

About APA

APA Corporation NASDAQ: APA is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids. The company's activities include identifying prospective resources, drilling and completing wells, and managing producing assets across multiple international markets.

APA's operations have historically been concentrated in the Permian Basin of the United States and in Egypt's Western Desert, where it participates in exploration and production activities through joint ventures.

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