EOG Resources (EOG): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

EOG Resources ( EOG) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day down 0.5%. By the end of trading, EOG Resources fell $2.71 (-2.2%) to $123 on heavy volume. Throughout the day, 2.8 million shares of EOG Resources exchanged hands as compared to its average daily volume of 1.6 million shares. The stock ranged in price between $122.23-$125.35 after having opened the day at $124.87 as compared to the previous trading day's close of $125.71. Other companies within the Basic Materials sector that declined today were: Lightbridge ( LTBR), down 17.4%, Noranda Aluminum ( NOR), down 13%, PostRock Energy ( PSTR), down 13%, and Tanzanian Royalty Exploration Corporation ( TRX), down 8.5%.
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EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas and crude oil primarily in the United States, Canada, the Republic of Trinidad and Tobago, the United Kingdom, and the People's Republic of China. EOG Resources has a market cap of $34.49 billion and is part of the energy industry. The company has a P/E ratio of 60.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.1% year to date as of the close of trading on Thursday. Currently there are 20 analysts that rate EOG Resources a buy, one analyst rates it a sell, and three rate it a hold.

TheStreet Ratings rates EOG Resources as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, GMX Resources ( GMXR), up 28.6%, Turquoise Hill Resources ( TRQ), up 11%, BPZ Resources ( BPZ), up 10.6%, and General Steel Holdings ( GSI), up 9.9%, were all gainers within the basic materials sector with Cabot Oil & Gas Corporation ( COG) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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