Back to top

Image: Bigstock

EOG Resources (EOG) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, EOG Resources (EOG - Free Report) closed at $127.16, marking a -1.15% move from the previous day. This move lagged the S&P 500's daily loss of 0.88%. Elsewhere, the Dow lost 0.73%, while the tech-heavy Nasdaq lost 4.59%.

Prior to today's trading, shares of the oil and gas company had gained 1.41% over the past month. This has lagged the Oils-Energy sector's gain of 2% and the S&P 500's gain of 5.83% in that time.

Investors will be hoping for strength from EOG Resources as it approaches its next earnings release, which is expected to be February 23, 2023. In that report, analysts expect EOG Resources to post earnings of $3.31 per share. This would mark year-over-year growth of 7.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.39 billion, up 5.8% from the year-ago period.

It is also important to note the recent changes to analyst estimates for EOG Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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. Within the past 30 days, our consensus EPS projection has moved 4.76% lower. EOG Resources currently has a Zacks Rank of #3 (Hold).

Digging into valuation, EOG Resources currently has a Forward P/E ratio of 9.53. This valuation marks a premium compared to its industry's average Forward P/E of 6.03.

We can also see that EOG currently has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.22 at yesterday's closing price.

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 245, which puts it in the bottom 3% 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.

To follow EOG in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


EOG Resources, Inc. (EOG) - free report >>

Published in