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EOG Resources (EOG) Gains But Lags Market: What You Should Know
EOG Resources (EOG - Free Report) closed at $109.20 in the latest trading session, marking a +0.09% move from the prior day. The stock lagged the S&P 500's daily gain of 1.68%. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq lost 1.7%.
Prior to today's trading, shares of the oil and gas company had lost 18.14% over the past month. This has lagged the Oils-Energy sector's loss of 8.65% and the S&P 500's loss of 6.68% in that time.
Investors will be hoping for strength from EOG Resources as it approaches its next earnings release. On that day, EOG Resources is projected to report earnings of $2.67 per share, which would represent a year-over-year decline of 33.25%. Our most recent consensus estimate is calling for quarterly revenue of $5.69 billion, up 42.82% from the year-ago period.
EOG's full-year Zacks Consensus Estimates are calling for earnings of $12.58 per share and revenue of $24.66 billion. These results would represent year-over-year changes of -8.58% and -4.07%, respectively.
Investors might also notice recent changes to analyst estimates for EOG Resources. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.83% lower. EOG Resources is currently a Zacks Rank #3 (Hold).
In terms of valuation, EOG Resources is currently trading at a Forward P/E ratio of 8.67. For comparison, its industry has an average Forward P/E of 5.66, which means EOG Resources is trading at a premium to the group.
Also, we should mention that EOG has a PEG ratio of 0.3. 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 0.29 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.