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Is it Worth Holding EOG Resources (EOG) in Your Portfolio?
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We issued an updated research report on upstream energy company EOG Resources Inc. (EOG - Free Report) on May 16, 2017. The firm’s growth profile is attractive and it has a huge inventory of drilling opportunities. However, the company’s increasing exploration costs raise concerns.
EOG Resources currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
The company has huge acreages in oil shale plays like Permian, Bakken and Eagle Ford. Most importantly, EOG Resources is among the leading players in the Bakken play and the largest in the Eagle Ford.
Given that shale players are gathering at domestic oil resources over the last few months and ramping up production following the oil price recovery from the mid-Feb 2016 lows, we expect EOG Resources to benefit considerably. During first-quarter 2017, the company’s earnings met the Zacks Consensus Estimate but the top line beat estimates. The results were supported by increased liquid production as well as higher oil and gas price realizations.
Moreover, the pricing chart of EOG Resources shows significant strength. The company’s shares outperformed the Zacks categorized Oil & Gas-U.S Exploration and Production industry over the last one year. During the aforesaid period, EOG Resources’ shares gained 16.7% while the broader industry declined 7.9%.
However, we are concerned with the increase in exploration expenses during the first three months of this year. If the trend continues, EOG Resources' financial and operational performances could be hurt in the coming quarters.
Also, the Zacks Consensus Estimate for EOG Resources’ second-quarter 2017 earnings has been revised downward over the last 30 days. The Zacks Consensus Estimate for full-year 2017 has also moved revised south over the same time span.
Stocks to Consider
Some better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Canadian Natural and McDermott sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth for Canadian Natural to be 720% for the current year.
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Is it Worth Holding EOG Resources (EOG) in Your Portfolio?
We issued an updated research report on upstream energy company EOG Resources Inc. (EOG - Free Report) on May 16, 2017. The firm’s growth profile is attractive and it has a huge inventory of drilling opportunities. However, the company’s increasing exploration costs raise concerns.
EOG Resources currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
The company has huge acreages in oil shale plays like Permian, Bakken and Eagle Ford. Most importantly, EOG Resources is among the leading players in the Bakken play and the largest in the Eagle Ford.
Given that shale players are gathering at domestic oil resources over the last few months and ramping up production following the oil price recovery from the mid-Feb 2016 lows, we expect EOG Resources to benefit considerably. During first-quarter 2017, the company’s earnings met the Zacks Consensus Estimate but the top line beat estimates. The results were supported by increased liquid production as well as higher oil and gas price realizations.
Moreover, the pricing chart of EOG Resources shows significant strength. The company’s shares outperformed the Zacks categorized Oil & Gas-U.S Exploration and Production industry over the last one year. During the aforesaid period, EOG Resources’ shares gained 16.7% while the broader industry declined 7.9%.
However, we are concerned with the increase in exploration expenses during the first three months of this year. If the trend continues, EOG Resources' financial and operational performances could be hurt in the coming quarters.
Also, the Zacks Consensus Estimate for EOG Resources’ second-quarter 2017 earnings has been revised downward over the last 30 days. The Zacks Consensus Estimate for full-year 2017 has also moved revised south over the same time span.
Stocks to Consider
Some better-ranked players in the energy sector include Canadian Natural Resources Limited (CNQ - Free Report) , McDermott International Inc. and W&T Offshore Inc. (WTI - Free Report) . Canadian Natural and McDermott sport a Zacks Rank #1 (Strong Buy), while W&T Offshore carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
We expect year-over-year earnings growth for Canadian Natural to be 720% for the current year.
McDermott beat the Zacks Consensus Estimate in each of the trailing four quarters with an average positive surprise of 387.50%.
W&T Offshore had an average positive earnings surprise of 69.21% in the last four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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