Trade-Ideas: EOG Resources (EOG) Is Today's Post-Market Laggard Stock
Trade-Ideas LLC identified
(
) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified EOG Resources as such a stock due to the following factors:
- EOG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $313.9 million.
- EOG is down 2.5% today from today's close.
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More details on EOG:
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil and natural gas. The stock currently has a dividend yield of 0.8%. EOG has a PE ratio of 35. Currently there are 13 analysts that rate EOG Resources a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for EOG Resources has been 5.1 million shares per day over the past 30 days. EOG has a market cap of $48.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.87 and a short float of 2.5% with 3.69 days to cover. Shares are down 6.1% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates EOG Resources as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.19, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for EOG RESOURCES INC is currently very high, coming in at 73.31%. Regardless of EOG's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.21% trails the industry average.
- EOG, with its decline in revenue, slightly underperformed the industry average of 33.1%. Since the same quarter one year prior, revenues fell by 41.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has significantly decreased to $887.37 million or 54.13% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, EOG RESOURCES INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full EOG Resources Ratings Report.
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