EOG Resources (EOG) Stock Sinks As Market Gains: Here's Why
In the latest trading session, EOG Resources (EOG) closed at $120.38, marking a -0.53% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.18%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.1%.
Shares of the oil and gas company have appreciated by 2.26% over the course of the past month, outperforming the Oils-Energy sector's gain of 1.79% and lagging the S&P 500's gain of 2.75%.
Market participants will be closely following the financial results of EOG Resources in its upcoming release. The company is predicted to post an EPS of $3.47, indicating a 5.15% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.38 billion, indicating a 5.07% decrease compared to the same quarter of the previous year.
Investors might also notice recent changes to analyst estimates for EOG Resources. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 1.47% lower within the past month. EOG Resources is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, EOG Resources is currently being traded at a Forward P/E ratio of 8.97. This signifies a premium in comparison to the average Forward P/E of 7.11 for its industry.
Investors should also note that EOG has a PEG ratio of 0.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.4 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 240, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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EOG Resources, Inc. (EOG) : Free Stock Analysis Report
