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 0.4%. By the end of trading, EOG Resources fell $1.47 (-1.1%) to $133.22 on average volume. Throughout the day, 1,973,541 shares of EOG Resources exchanged hands as compared to its average daily volume of 2,042,100 shares. The stock ranged in price between $132.74-$134.92 after having opened the day at $134.51 as compared to the previous trading day's close of $134.69. Other companies within the Basic Materials sector that declined today were: Pure Bioscience ( PURE), down 17.0%, Houston American Energy Corporation ( HUSA), down 14.8%, Mines Management ( MGN), down 13.9% and Quest Rare Minerals ( QRM), down 10.9%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $37.2 billion and is part of the energy industry. The company has a P/E ratio of 50.1, above the S&P 500 P/E ratio of 17.7. Shares are up 11.5% year to date as of the close of trading on Wednesday. Currently there are 22 analysts that rate EOG Resources a buy, no analysts rate 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 positive front, Crosshair Energy ( CXZ), down 19.6%, Saratoga Resources ( SARA), down 14.2%, Andatee China Marine Fuel Services Corporat ( AMCF), down 13.5% and TransAtlantic Petroleum ( TAT), down 10.6% , were all gainers within the basic materials sector with Helmerich & Payne ( HP) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you liked this article you might like

Learn From My Portfolio Mistakes: Cramer's 'Mad Money' Recap (Friday 9/1/17)

Oil Will Turn Soon, But Not All Oil Companies Will Follow

Jim Cramer Reveals What to Do When You're Hung on Oil Stocks

Slipping EOG Resources Likely Needs to Build a New Base

Cramer: You Could Short Oil Stocks by Throwing Darts at Them