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EOG Resources (EOG) Dips More Than Broader Markets: What You Should Know

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EOG Resources (EOG - Free Report) closed at $121.45 in the latest trading session, marking a -0.91% move from the prior day. This change lagged the S&P 500's 0.72% loss on the day. At the same time, the Dow lost 0.45%, and the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the oil and gas company had gained 3% in the past month. In that same time, the Oils-Energy sector gained 1.38%, while the S&P 500 lost 9.06%.

EOG Resources will be looking to display strength as it nears its next earnings release. In that report, analysts expect EOG Resources to post earnings of $4.41 per share. This would mark year-over-year growth of 104.17%. Meanwhile, our latest consensus estimate is calling for revenue of $7.34 billion, up 54.07% from the prior-year quarter.

EOG's full-year Zacks Consensus Estimates are calling for earnings of $15.89 per share and revenue of $28.3 billion. These results would represent year-over-year changes of +84.55% and +51.81%, respectively.

Investors should also note any recent changes to analyst estimates for EOG Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.14% higher. EOG Resources is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that EOG Resources has a Forward P/E ratio of 7.71 right now. Its industry sports an average Forward P/E of 5.28, so we one might conclude that EOG Resources is trading at a premium comparatively.

Also, we should mention that EOG has a PEG ratio of 0.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.22 as of yesterday's close.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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