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

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.

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 $1.84 (-1.2%) to $156.40 on light volume. Throughout the day, 1,267,260 shares of EOG Resources exchanged hands as compared to its average daily volume of 1,724,700 shares. The stock ranged in price between $156.12-$158.90 after having opened the day at $158.05 as compared to the previous trading day's close of $158.24. Other companies within the Basic Materials sector that declined today were: ZaZa Energy ( ZAZA), down 29.0%, GSE ( GSE), down 16.6%, BioFuel Energy Corporation ( BIOF), down 13.5% and GeoPetro Resources Company ( GPR), down 7.8%.

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 $43.2 billion and is part of the energy industry. Shares are up 31.0% year to date as of the close of trading on Tuesday. Currently there are 20 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Andatee China Marine Fuel Services Corporat ( AMCF), up 22.5%, Crosshair Energy ( CXZ), up 14.3%, Golden Star Resources ( GSS), up 13.3% and Cardero Resources Corporation ( CDY), up 13.0% , were all gainers within the basic materials sector with Kinross Gold Corporation ( KGC) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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