Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

EOG Resources (EOG)

Headquartered in Houston, TX, EOG Resources Inc. is primarily involved in exploring and producing oil and natural gas. The leading upstream energy player’s operations are spread across the United States, China and Trinidad. For evaluating wells in the prolific oil and gas plays, EOG Resources calculates the rate of return. In other words, the company evaluates profitability of the wells to produce optimum oil and gas volumes while minimizing operating costs.

EOG is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 7.6X for the current fiscal year compared to the Oil and Gas - Exploration and Production - United States industry's P/E of 5.3X. Additionally, EOG has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 8.6X. Value investors should also note EOG's Price/Sales ratio of 4X.

A company's earnings performance is important for value investors as well. For fiscal 2022, 10 analysts revised their earnings estimate higher in the last 60 days for EOG, while the Zacks Consensus Estimate has increased $4.23 to $16.82 per share. EOG also holds an average earnings surprise of 6.1%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EOG to their portfolios.

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EOG Resources, Inc. (EOG) : Free Stock Analysis Report
 
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