Anadarko’s stock performance
Following Anadarko Petroleum’s (APC) 1Q17 earnings release on May 2, 2017, APC stock fell ~0.70%. In after-market trading, the stock continued to fall and was trading as much as ~8.4% lower in the early part of May 3, 2017. The stock has fallen ~20.0% YoY (year-over-year).
In this part of the series, we’ll analyze Anadarko’s stock performance with respect to movements in the broader industry and the broader market.
As you can see in the above graph, Anadarko Petroleum’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (UCO). Crude oil and natural gas prices (UGAZ) have also been driving the Energy Select Sector SPDR ETF (XLE).
Energy sector comparison
The energy sector as a whole has also been weak, as you can see in the above graph.
Since January 2017, Anadarko stock has underperformed XLE, which has fallen ~12.0% since the beginning of the year.
Both XLE and Anadarko Petroleum have underperformed the SPDR S&P 500 ETF (SPY) (SPX-INDEX), which rose 6.0% during the period. The energy sector makes up ~7.0% of SPY.
Anadarko Petroleum stock fell on May 2, 2017. That could have been due to its lower-than-expected earnings in 1Q17, which offset its significant revenue beat. Read Part 1 of this series for more insights into APC’s 1Q17 performance. Weak crude oil prices have likely been pulling down the stock. On May 2, 2017, crude oil prices fell 2.4% compared to the previous day’s close.