We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is EOG Resources (EOG) Stock Undervalued Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
EOG Resources (EOG - Free Report) is a stock many investors are watching right now. EOG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is EOG's P/B ratio of 2.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.99. EOG's P/B has been as high as 2.65 and as low as 1.93, with a median of 2.32, over the past year.
Finally, we should also recognize that EOG has a P/CF ratio of 6.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EOG's P/CF compares to its industry's average P/CF of 11.74. Over the past 52 weeks, EOG's P/CF has been as high as 7.37 and as low as 5.71, with a median of 6.59.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Matador Resources (MTDR - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Additionally, Matador Resources has a P/B ratio of 0.99 while its industry's price-to-book ratio sits at 2.99. For MTDR, this valuation metric has been as high as 1.49, as low as 0.81, with a median of 1.14 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EOG Resources and Matador Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EOG and MTDR feels like a great value stock at the moment.
View the Zacks #1 Rank List
Image: Bigstock
Is EOG Resources (EOG) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
EOG Resources (EOG - Free Report) is a stock many investors are watching right now. EOG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is EOG's P/B ratio of 2.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.99. EOG's P/B has been as high as 2.65 and as low as 1.93, with a median of 2.32, over the past year.
Finally, we should also recognize that EOG has a P/CF ratio of 6.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EOG's P/CF compares to its industry's average P/CF of 11.74. Over the past 52 weeks, EOG's P/CF has been as high as 7.37 and as low as 5.71, with a median of 6.59.
Another great Oil and Gas - Exploration and Production - United States stock you could consider is Matador Resources (MTDR - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Additionally, Matador Resources has a P/B ratio of 0.99 while its industry's price-to-book ratio sits at 2.99. For MTDR, this valuation metric has been as high as 1.49, as low as 0.81, with a median of 1.14 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EOG Resources and Matador Resources are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EOG and MTDR feels like a great value stock at the moment.