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

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EOG Resources (EOG - Free Report) closed the most recent trading day at $132.18, moving -1.84% from the previous trading session. This move lagged the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.

Prior to today's trading, shares of the oil and gas company had gained 3.8% over the past month. This has lagged the Oils-Energy sector's gain of 4.83% and outpaced the S&P 500's gain of 0.54% in that time.

Investors will be hoping for strength from EOG Resources as it approaches its next earnings release. In that report, analysts expect EOG Resources to post earnings of $2.79 per share. This would mark a year-over-year decline of 24.8%. Meanwhile, our latest consensus estimate is calling for revenue of $5.77 billion, down 24.02% from the prior-year quarter.

EOG's full-year Zacks Consensus Estimates are calling for earnings of $11.08 per share and revenue of $23.2 billion. These results would represent year-over-year changes of -19.48% and -9.75%, respectively.

Investors should also note any recent changes to analyst estimates for EOG Resources. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 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 3.86% higher within the past month. EOG Resources is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, EOG Resources currently has a Forward P/E ratio of 12.16. Its industry sports an average Forward P/E of 10.04, so we one might conclude that EOG Resources is trading at a premium comparatively.

Also, we should mention that EOG has a PEG ratio of 0.42. 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. EOG's industry had an average PEG ratio of 0.5 as of yesterday's close.

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 193, which puts it in the bottom 24% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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