EOG Resources (EOG) Stock Sinks As Market Gains: What You Should Know
EOG Resources (EOG) closed at $104.78 in the latest trading session, marking a -0.9% move from the prior day. This change lagged the S&P 500's 0.3% gain on the day. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.
Heading into today, shares of the oil and gas company had lost 10.07% over the past month, lagging the Oils-Energy sector's loss of 5.47% and the S&P 500's loss of 1.21% in that time.
Wall Street will be looking for positivity from EOG Resources as it approaches its next earnings report date. This is expected to be May 4, 2023. The company is expected to report EPS of $2.64, down 34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.69 billion, up 42.76% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.54 per share and revenue of $24.69 billion, which would represent changes of -8.87% and -3.94%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for EOG Resources. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 7.12% lower. EOG Resources is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that EOG Resources has a Forward P/E ratio of 8.43 right now. Its industry sports an average Forward P/E of 5.32, so we one might conclude that EOG Resources is trading at a premium comparatively.
Investors should also note that EOG has a PEG ratio of 0.29 right now. 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 industry currently had an average PEG ratio of 0.29 as of yesterday's close.
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 221, putting it in the bottom 13% 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.
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