This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EOG Is Flourishing and So Can You

Stocks in this article: EOG CVX XOM

Over the last 12 months EOG is up 49.2% while the market is up 16.7%.

In fact, over the past three months, this stock is up 18.5% while the market is down 1.3%. So EOG gets very good momentum and performance grades as compared to other 3,500 investments that I track on a daily basis.

I love stocks that are performing for its shareholders because that tells me there is probably good management at the company.

While the CEO is probably doing quite well himself, he's also doing quite well for his shareholders. It's hard to be an angry shareholder when the CEO is making money for you! In my mind that's the number one job of a CEO--to treat their shareholders with some good returns over the years.

Valuation: How about the valuation of EOG? Just like I've seen a lot of cheap stocks that don't have good performance, I've also seen a lot of stocks flying around with great performance, but trading at astronomical prices. This scares me!

I was around in 2000 when the high-flying dot-com stocks were trading at triple-digit PE ratios and crashing back to earth, so I pay keen attention to valuation.

Data from Best Stocks Now App

EOG is currently trading at 17.8 times forward earnings. The market is currently trading at an average of about 18 time's forward earnings, so EOG is trading at a slight discount to the overall market.

When I take EOG's earnings estimates of $8.83 per share for the next year, extrapolate that out over the next five years at annual estimated growth rate of 18%, and apply a multiple that I think is appropriate, I find a stock that still has 85% upside potential!

Stock chart: Lastly, let's not forget to check EOG's one-year stock chart. I'm looking for a stock that is not falling, in a sideways trend, or starting to rollover! When we look at EOG, we see a very strong stock chart!

Courtesy of

It is very important to always be in the right area of the market at the right time. I don't think there is anyone out there who has been an investor and hasn't been caught in the wrong place at the wrong time. With oil prices rising fast, the energy stocks look very good once again!

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs