Analysts rate EOG Resources Inc. (EOG:NYE) with a Strong Buy, $119 Target

STA Research
by: STA Research

Analysts rate EOG Resources Inc. with a consensus Strong Buy rating and a 12-month average target price of $119.35 per share.

Barclays maintained the Overweight rating on EOG Resources Inc. and raised the target from $116 to $139 on the company’s stock.

Based on the EOG Resources Inc. stock forecasts from 16 analysts, the average analyst target price for EOG Resources Inc. is USD 119.35 over the next 12 months. EOG Resources Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of EOG Resources Inc. is Slightly Bullish, which is based on 7 positive signals and 5 negative signals. At the last closing, EOG Resources Inc.’s stock price was USD 115.80. EOG Resources Inc.’s stock price has changed by -0.88% over the past week, +4.18% over the past month and +65.24% over the last year.

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas and natural gas liquids. Its principal producing areas are in New Mexico and Texas in the United States and the Republic of Trinidad and Tobago. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Compared to its sector, this stock has shown top quartile earnings growth in the previous 5 years.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median total returns

The company has underperformed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price to book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

 

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