Is EOG Resources Stock Underperforming the S&P 500?

Energy - EOG Resources, Inc_ logo and chart- by IgorGolovniov via Shutterstock

EOG Resources, Inc. (EOG), headquartered in Houston, Texas, explores, develops, produces, and markets crude oil, natural gas liquids, and natural gas with proven reserves in the U.S. and Trinidad. Valued at $68.68 billion by market cap, the company is one of the largest crude oil and natural gas exploration and production companies in the U.S.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and EOG perfectly fits into that category, signifying its substantial size, stability, and dominance in its industry.

The energy giant has fallen 14.4% from its 52-week high of $139.67, which it hit on Apr. 12. Shares of EOG are down 3.3% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 6.6% gains over the same time frame.

Longer term, EOG shares have risen 5.4% over the past year, but in 2024, the stock is down 1.2%. By contrast, the SPX is up 15% on a YTD basis and 24.4% over the past 52 weeks.

To confirm the recent bearish price trend, EOG has been trading below its 50-day moving average since late May and 200-day moving average since early June.

On May 2, EOG reported its Q1 results. The company posted an adjusted EPS of $2.82, exceeding the consensus estimates of $2.70. Its revenue stood at $6.12 billion, higher than the Wall Street estimates of $5.91 billion. The stock closed up more than 1% on the day the results were released but has been in a downtrend since then.

Rival Occidental Petroleum Corporation (OXY) has outperformed EOG with 2.6% gains on a YTD basis. 

Despite its recent underperformance compared to SPX, analysts are optimistic about EOG’s prospects. The stock has a consensus rating of “Moderate Buy” from the 26 analysts covering it, and the mean price target of $146.27 is a premium of 22.4% to current levels.

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On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.