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EOG Resources (EOG) Stock Sinks As Market Gains: What You Should Know

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EOG Resources (EOG - Free Report) closed at $121.29 in the latest trading session, marking a -0.83% move from the prior day. This move lagged the S&P 500's daily gain of 1.33%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 2.94%.

Prior to today's trading, shares of the oil and gas company had gained 20.53% over the past month. This has outpaced the Oils-Energy sector's gain of 3.53% and the S&P 500's gain of 6.11% in that time.

EOG Resources will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2023. The company is expected to report EPS of $2.54, down 36.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.65 billion, up 41.95% from the year-ago period.

EOG's full-year Zacks Consensus Estimates are calling for earnings of $11.96 per share and revenue of $24.06 billion. These results would represent year-over-year changes of -13.08% and -6.37%, respectively.

Any recent changes to analyst estimates for EOG Resources should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. The Zacks Consensus EPS estimate has moved 4.92% lower within the past month. EOG Resources currently has a Zacks Rank of #3 (Hold).

Digging into valuation, EOG Resources currently has a Forward P/E ratio of 10.23. This represents a premium compared to its industry's average Forward P/E of 6.63.

Meanwhile, EOG's PEG ratio is currently 0.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.36 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 238, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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