Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a momo momentum 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 $365.9 million.
- EOG has a PE ratio of 43.8.
- EOG is currently in the upper 30% of its 1-year range.
- EOG is in the upper 25% of its 20-day range.
- EOG is in the upper 35% of its 5-day range.
- EOG is currently trading above yesterday's high.
- EOG has experienced a gap between today's open and yesterday's close of 1.4%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on EOG:
EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of crude oil and natural gas. The stock currently has a dividend yield of 0.4%. EOG has a PE ratio of 43.8. Currently there are 19 analysts that rate EOG Resources a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for EOG Resources has been 1.9 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 1.46 and a short float of 1.2% with 1.56 days to cover. Shares are up 7.5% year-to-date as of the close of trading on Monday.
rates EOG Resources as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 22.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 30.1% when compared to the same quarter one year prior, rising from $355.49 million to $462.50 million.
- Net operating cash flow has increased to $2,012.47 million or 40.10% when compared to the same quarter last year. In addition, EOG RESOURCES INC has also vastly surpassed the industry average cash flow growth rate of -51.05%.
- Powered by its strong earnings growth of 29.00% and other important driving factors, this stock has surged by 41.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- EOG RESOURCES INC has improved earnings per share by 29.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EOG RESOURCES INC reported lower earnings of $2.10 versus $4.08 in the prior year. This year, the market expects an improvement in earnings ($8.17 versus $2.10).
- You can view the full EOG Resources Ratings Report.