EOG Resources (EOG) Dips More Than Broader Markets: What You Should Know
EOG Resources (EOG) closed at $132.10 in the latest trading session, marking a -1.9% move from the prior day. This move lagged the S&P 500's daily loss of 1.3%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 5.51%.
Prior to today's trading, shares of the oil and gas company had gained 3.97% over the past month. This has outpaced the Oils-Energy sector's gain of 2.85% and lagged the S&P 500's gain of 6.41% in that time.
Investors will be hoping for strength from EOG Resources as it approaches its next earnings release, which is expected to be February 23, 2023. On that day, EOG Resources is projected to report earnings of $3.33 per share, which would represent year-over-year growth of 7.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.41 billion, up 6.06% from the year-ago period.
Investors should also note any recent changes to analyst estimates for EOG Resources. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.82% lower. EOG Resources currently has a Zacks Rank of #3 (Hold).
In terms of valuation, EOG Resources is currently trading at a Forward P/E ratio of 9.87. For comparison, its industry has an average Forward P/E of 6.28, which means EOG Resources is trading at a premium to the group.
Investors should also note that EOG has a PEG ratio of 0.35 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 0.24 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 248, which puts it in the bottom 2% 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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