Why Apple, Southwest Airlines & Three Other Stocks Are in Spotlight

Analysts Give Thumbs Up to Caterpillar

Caterpillar Inc. (NYSE:CAT) is 1.33% in the green this morning after analysts at Deutsche Bank initiated a ‘Buy’ rating on the stock, setting a $98 price target. Although they don’t think Caterpillar’s EPS will undergo a V-shaped recovery, the analysts think 2016 will be the cyclical bottom for Caterpillar’s earnings as various beaten-up industries such as mining and Brazilian construction recover. Due to those beliefs and management’s progress in cutting costs, the analysts estimate Caterpillar will earn $4.03 per share for 2017, or over 13% above the current average estimate. The number of investors tracked by us with holdings in Caterpillar Inc. (NYSE:CAT) fell by six quarter-over-quarter to 31 at the end of June.

ConocoPhillips Upgraded

ConocoPhillips (NYSE:COP)’s shares have edged up by around 1% out of the gate after analysts at Jefferies upgraded the stock to ‘Hold’ from ‘Underperform’. The analysts like how management is cutting costs and capital expenditures to preserve the company’s balance sheet in the low oil price environment. Shares of ConocoPhillips are also in the green due to slightly higher crude prices. A total of 43 funds from our database owned shares of ConocoPhillips (NYSE:COP) heading into the third quarter, down by two from the previous quarter.

Apache Makes a Discovery

Apache Corporation (NYSE:APA) shares have surged over 10% after the oil and gas E&P announced discovering a significant new resource play, ‘the Alpine High’ in the Southern Delaware Basin. According to the company, Apache estimates the hydrocarbons in place on its positions hold 75 trillion cubic feet of rich gas and 3 billion barrels of oil in the Barnett and Woodford formation alone. Analysts estimate the new discovery could be worth $8 billion or more. Apache will dedicate more than a quarter of its capex budget to developing the resources this year. At the end of the second quarter, 33 investors tracked by Insider Monkey owned shares of Apache Corporation (NYSE:APA).

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