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

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 higher today making it today's featured basic materials winner. The sector as a whole closed the day up 1.3%. By the end of trading, EOG Resources rose $2.21 (1.6%) to $137.90 on heavy volume. Throughout the day, 3,157,672 shares of EOG Resources exchanged hands as compared to its average daily volume of 1,972,400 shares. The stock ranged in a price between $135.92-$138.78 after having opened the day at $136.83 as compared to the previous trading day's close of $135.69. Other companies within the Basic Materials sector that increased today were: Syntroleum Corporation ( SYNM), up 32.5%, Gold Standard Ventures ( GSV), up 30.6%, Pioneer Southwest Energy Partners ( PSE), up 23.6% and Pretium Resources ( PVG), up 16.9%.
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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 $34.3 billion and is part of the energy industry. The company has a P/E ratio of 46.2, above the S&P 500 P/E ratio of 17.7. Shares are up 12.3% year to date as of the close of trading on Tuesday. Currently there are 20 analysts that rate EOG Resources a buy, 1 analyst rates it a sell, and 4 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 negative front, Axiall ( AXLL), down 16.3%, Resolute Energy ( REN), down 15.9%, China Natural Resources ( CHNR), down 10.1% and Compressco Partners ( GSJK), down 8.0% , were all laggards within the basic materials sector with Williams Companies ( WMB) being today's basic materials sector laggard.

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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