Investor Confidence is Falling for EOG Resources Inc. (NYSE:EOG)

Investor Confidence is Falling for EOG Resources Inc. (NYSE:EOG)


The EOG Resources Inc. (EOG) shares are trading at lower $46.58 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $64.97.

To add more color to this target, the company’s high over the last year is $89.54 and the low is $27.00. Over the last 52 weeks, EOG is down -47.98% while the S&P 500 is down -0.36%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, EOG reported a profit of $57.59 million. EOG Resources Inc. also saw revenues increase to $4.72 billion. In addition, EOG has free cash flow of $896.09 million as of 03-2020. The company’s EBITDA came in at $1.06 billion which compares well with its peers.

EOG booked profit margins of 11.80%, its Return on Equity (ROE) is 9.90%, and its Return on Assets is 5.70%. All told, it is clear that, EOG needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EOG has a short ratio of 2.05 and outstanding shares of 582.05M.

Company Outlook

EOG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.42 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.64. EOG Resources Inc. EOG also noted assets of $37.63 billion at the end of the last quarter. Investors should also keep an eye on sector updates as EOG has historically followed its peers on positive news.

All told, EOG Resources Inc. EOG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EOG represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

EOG Resources Inc. EOG is now commanding a market cap of 27.01B and a float of 579.23M. EOG is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EOG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in EOG, either long or short, and we have not been compensated for this article.