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 up 0.5%. By the end of trading, EOG Resources fell $1.87 (-1.6%) to $113.44 on average volume. Throughout the day, 2,451,323 shares of EOG Resources exchanged hands as compared to its average daily volume of 1,797,600 shares. The stock ranged in price between $112.93-$116.28 after having opened the day at $116.18 as compared to the previous trading day's close of $115.31. Other companies within the Basic Materials sector that declined today were: GeoGlobal Resources ( GGR), down 25.1%, GeoPetro Resources Company ( GPR), down 12.5%, Harry Winston Diamond ( HWD), down 10.7% and Pure Bioscience ( PURE), down 10.3%.
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EOG Resources, Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of crude oil and natural gas. EOG Resources has a market cap of $31.2 billion and is part of the energy industry. The company has a P/E ratio of 54.4, above the S&P 500 P/E ratio of 17.7. Shares are down 4.5% year to date as of the close of trading on Thursday.

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 solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, China Shen Zhou Mining & Resources ( SHZ), down 17.6%, Rentech ( RTK), down 11.8%, Celanese Corporation ( CE), down 11.5% and Rentech Nitrogen Partners ( RNF), down 11.5% , were all gainers within the basic materials sector with Marathon Petroleum ( MPC) 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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