This Day On The Street
Continue to site
ADVERTISEMENT
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

EOG Is Flourishing and So Can You

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 StockCharts.com

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
EOG $94.54 -4.88%
AAPL $125.80 -2.25%
FB $77.56 -1.59%
GOOG $530.80 -1.85%
TSLA $232.95 1.06%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs