6 Jun

Apache Outperformed Oil-Weighted Stocks

WRITTEN BY Rabindra Samanta

Oil-weighted stocks’ returns

On May 29–June 5, our list of oil-weighted stocks fell 6.3%—compared to the 12.1% fall in US crude oil July futures. On average, our list of oil-weighted stocks outperformed US crude oil prices.

Apache Outperformed Oil-Weighted Stocks

Apache outperformed oil-weighted stocks

Let’s take a look at the oil-weighted stocks that either rose the most or fell the least in the last five trading sessions:

  • Apache (APA) rose 5.2%.
  • Concho Resources (CXO) fell 2.1%.
  • Oasis Petroleum (OAS) fell 3.4%.

Despite a higher correlation, Apache’s share prices ignored the fall in US crude oil prices. On June 5, Apache’s share prices rose 5.4%, while US crude oil prices rose 0.4%. On the same day, the S&P 500 Index (SPY) rose 2.1%. The rise in the broader market could have been behind the upside in Apache’s stock prices. In the second quarter, based on analysts’ consensus estimates, Apache’s earnings might double on a sequential basis.

On May 30, Stephens reduced its target price on Apache by $2 to $44. On June 5, Apache’s share prices closed 3.9%, 13.4%, 14%, and 21.4% below its 20-day, 50-day, 100-day, and 200-day moving averages.

Underperformers among oil-weighted stocks

Now, we’ll discuss the oil-weighted stocks that underperformed their peers and US crude oil prices in the last four trading sessions:

  • California Resources (CRC) fell 11.2%.
  • Whiting Petroleum (WLL) fell 11.3%.
  • Denbury Resources (DNR) fell 15.6%.

These three stocks had correlations of at least 66% with US crude oil active futures. All of these oil-weighted stocks are part of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). They operate with production mixes of at least 60% in liquids based on the latest quarterly production data.

Latest articles

With over 38,000 restaurants, McDonald's doesn’t make any of its products. Instead, it contracts with suppliers to meet its massive requirements.

In Q3, T-Mobile’s (TMUS) strong momentum continued. The telecom giant gained postpaid phone customers and reported strong earnings.

Energy Transfer stock (ET) has been under pressure due to a weak earnings season from MLPs, but its fundamentals are stronger than ever.

Former HBO CEO Richard Plepler is in "advanced talks" over a deal with Apple TV+ (AAPL), the Wall Street Journal reported on Tuesday.

At 11:46 AM ET, US crude oil prices were up 0.7% from the last trading session. The EIA plans to release its inventory report tomorrow.

Footwear and apparel giant Nike (NKE) has decided to stop selling its products on Amazon (AMZN), ending a program that's run since 2017.