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

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EOG Resources (EOG - Free Report) closed the most recent trading day at $124.38, moving +0.02% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.17%. Elsewhere, the Dow lost 1.02%, while the tech-heavy Nasdaq lost 2.45%.

Heading into today, shares of the oil and gas company had lost 1.43% over the past month, outpacing the Oils-Energy sector's loss of 6.76% and the S&P 500's loss of 5.25% in that time.

EOG Resources will be looking to display strength as it nears its next earnings release. On that day, EOG Resources is projected to report earnings of $3.60 per share, which would represent year-over-year growth of 16.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.54 billion, up 8.27% from the year-ago period.

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. The Zacks Consensus EPS estimate has moved 1.15% lower within the past month. EOG Resources is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note EOG Resources's current valuation metrics, including its Forward P/E ratio of 8.49. This represents a premium compared to its industry's average Forward P/E of 4.54.

We can also see that EOG currently has a PEG ratio of 0.3. 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. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.21 based on yesterday's closing prices.

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 159, putting it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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