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EOG Resources (EOG) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest trading session, EOG Resources (EOG - Free Report) closed at $111.03, marking a -1.61% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 1.37% for the day. On the other hand, the Dow registered a loss of 1.35%, and the technology-centric Nasdaq decreased by 1.8%.

Shares of the oil and gas company have depreciated by 2.76% over the course of the past month, underperforming the Oils-Energy sector's gain of 0.81% and the S&P 500's gain of 5.1%.

Market participants will be closely following the financial results of EOG Resources in its upcoming release. The company plans to announce its earnings on February 22, 2024. On that day, EOG Resources is projected to report earnings of $3.14 per share, which would represent a year-over-year decline of 4.85%. Simultaneously, our latest consensus estimate expects the revenue to be $6.22 billion, showing a 7.36% drop compared to the year-ago quarter.

It's also important for investors to be aware of any recent modifications to analyst estimates for EOG Resources. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.74% lower within the past month. Currently, EOG Resources is carrying a Zacks Rank of #4 (Sell).

Looking at its valuation, EOG Resources is holding a Forward P/E ratio of 9.37. This signifies a premium in comparison to the average Forward P/E of 8.72 for its industry.

Meanwhile, EOG's PEG ratio is currently 0.33. 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 had an average PEG ratio of 0.67 as trading concluded yesterday.

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 247, putting it in the bottom 2% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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