APA -- Buyback Machine With a Monster Discovery

Energy has been one of the hottest sectors of the past year, with the Energy Select Sector SPDR ETF (NYSEMKT: XLE) posting a scintillating 26% year-to-date (YTD) gain (compared to a 7% loss for the S&P 500) and a 60% gain over a one-year timeframe (versus a 12% gain for the S&P 500). While some investors may feel like it is "too late" to invest in energy and others are expecting the hot sector to cool down, remember that due to a decade of underperformance and underinvestment, energy still only makes up about 3% of the total market cap of the S&P 500.

Many investors are still avoiding oil. Some investors will not invest in the sector at all due to Environmental, Social and Governance (ESG) concerns. For these reasons, I think energy stocks still have plenty of room to run. One great example is APA Corp. (NASDAQ: APA), formerly known as Apache. APA has gained 100% off of its 52-week low but could just be getting started. Here's why.

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