EOG Resources (EOG) Stock Sinks As Market Gains: What You Should Know
EOG Resources (EOG) closed at $124.75 in the latest trading session, marking a -2% move from the prior day. This change lagged the S&P 500's daily gain of 1.47%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq added 7.94%.
Prior to today's trading, shares of the oil and gas company had gained 2.36% over the past month. This has outpaced the Oils-Energy sector's gain of 1.59% and lagged the S&P 500's gain of 7.41% in that time.
EOG Resources will be looking to display strength as it nears 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%. Our most recent consensus estimate is calling for quarterly revenue of $6.39 billion, up 5.8% from the year-ago period.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 8.3% lower. EOG Resources is currently a Zacks Rank #3 (Hold).
Investors should also note EOG Resources's current valuation metrics, including its Forward P/E ratio of 9.48. Its industry sports an average Forward P/E of 5.99, 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 0.34 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 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 individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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