APA: Watch This Stock
Here is a natural gas stock that I like. If you look at the above weekly chart of Apache Corporation , you'll notice how the stock has been making higher swing lows which obviously is bullish.
In the lower panel is the P/E ratio for this stock. Notice when the P/E ratio gets below 9 the stock tends to rally. Right now the ratio is a little over 8 making this stock a good buy relative to past levels for this ratio.
On Thursday before the open APA reports earnings. Reuters estimates 1.66 while Zacks is estimating 1.67. I don't like to trade a stock right before earnings because anything can happen, but assuming APA doesn't have a large gap on Thursday, I'll be watching this stock to buy.
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1 comment:
Buying right now doesn't seem to give a good risk:reward ratio. But buying on a break-out above 75 would be a good play. Certainly one to watch.
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