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Why the Market Dipped But EOG Resources (EOG) Gained Today

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EOG Resources (EOG - Free Report) closed the most recent trading day at $135.76, moving +1.09% from the previous trading session. This move outpaced the S&P 500's daily loss of 1.34%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.62%.

Coming into today, shares of the oil and gas company had gained 4.11% in the past month. In that same time, the Oils-Energy sector gained 0.46%, while the S&P 500 lost 1.57%.

The investment community will be paying close attention to the earnings performance of EOG Resources in its upcoming release. The company is slated to reveal its earnings on November 2, 2023. The company's earnings per share (EPS) are projected to be $2.88, reflecting a 22.37% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.84 billion, down 23.07% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.41 per share and a revenue of $23.38 billion, signifying shifts of -17.08% and -9.03%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for EOG Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.99% higher. Right now, EOG Resources possesses a Zacks Rank of #2 (Buy).

Digging into valuation, EOG Resources currently has a Forward P/E ratio of 11.77. For comparison, its industry has an average Forward P/E of 9.96, which means EOG Resources is trading at a premium to the group.

We can also see that EOG currently has a PEG ratio of 0.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States industry had an average PEG ratio of 0.45 as trading concluded yesterday.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 14, this industry ranks in the top 6% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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