December 28, 2023
Top 10 Stock EOG Resources Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View EOG Resources Buy

360 METRICS	December 28, 2023
VALUE
VALUE	18
GROWTH
GROWTH	65
SAFETY
SAFETY	98
SENTIMENT
SENTIMENT	60
360° VIEW
360° VIEW	73

ANALYSIS: With an Obermatt 360° View of 73 (better than 73% compared with alternatives), overall professional sentiment and financial characteristics for the stock EOG Resources are above average. The 360° View is based on consolidating four consolidated indicators, with all but one indicator above average for EOG Resources. The consolidated Growth Rank has a good rank of 65, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth, as well as stock returns. This means that growth is higher than for 65% of competitors in the same industry. The consolidated Safety Rank at 98 means that the company has a financing structure that is safer than 98% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. Finally, the consolidated Sentiment Rank has a good rank of 60, which means that professional investors are more optimistic about the stock than for 60% of alternative investment opportunities. But the consolidated Value Rank is less desirable at 18, meaning that the share price of EOG Resources is on the higher side compared with indicators such as revenues, profits, and invested capital. This means the stock price is higher than for 82% of alternative stocks in the same industry. ...read more

RECOMMENDATION: With a consolidated 360° View of 73, EOG Resources is better positioned than 73% of all alternative stock investment opportunities based on the Obermatt Method. As three out of four consolidated Obermatt Ranks exhibit excellent performance, such as above-average growth (Growth Rank of 65), a safe financing structure (Safety Rank of 98), and positive professional market sentiment (Sentiment Rank of 60), it is a solid stock investment where growth may be the strongest driver of the investment rationale, also reflected by institutional investors. It is typical for growth companies to have low value, as is the case here. Investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of EOG Resources compared with alternatives? You can use the following rule of thumb: The growth rank measures the growth momentum of the company (65% better than peers). The value rank could be the reverse reflection of that (35%). A Value Rank below that level may be assessed as expensive, a rank above that is still good value. Sometimes market sentiment just reflects the past, sometimes the reality. You pay more than the market average for this stock, but it may be worth it. ...read more

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Sentiment Strategy: Professional Market Sentiment for EOG Resources positive

SENTIMENT METRICS	December 28, 2023
ANALYST OPINION
ANALYST OPINION	66
OPINIONS CHANGE
OPINIONS CHANGE	24
PRO HOLDINGS
PRO HOLDINGS	42
MARKET PULSE
MARKET PULSE	91
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	60

ANALYSIS: With an Obermatt Sentiment Rank of 60 (better than 60% compared with alternatives), overall professional sentiment and engagement for the stock EOG Resources is above average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and half above average for EOG Resources. Analyst Opinions are at a rank of 66 (better than 66% of alternative investments), which means that currently, stock research analysts tend to recommend a stock investment in the company. Market Pulse is also positive with a rank of 91, which means that the current professional news and professional social networks are positive when discussing this company (more positive news than for 91% of competitors). But Analyst Opinions Change is negative with a below 50 rank of 24, which means that stock research experts are changing their opinions for the worse in recommending the company. In other words, they are getting more critical of investments in EOG Resources. There are also only so many institutional investors holding company stock with a Professional Investors rank of 42, which means that, currently, professional investors hold less stock in this company than in 58% of alternative investment opportunities. Pros tend to invest in other companies. ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 60 (more positive than 60% compared with investment alternatives), EOG Resources has a reputation among professional investors that is above-average compared with that of its competitors. The signals are ambivalent. The positive news in the market contradicts the negative change in analyst recommendations. Since the overall analyst recommendations are still above average, the stock may be safer for investing, especially if it is not an extra-large company where Pros tend to be less present. In such a case, the Pro Investor rank is not a problem. ...read more

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Value Strategy: EOG Resources Stock Price Value low

VALUE METRICS	December 28, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	17
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	31
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	23
DIVIDEND YIELD
DIVIDEND YIELD	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	18

ANALYSIS: With an Obermatt Value Rank of 18 (worse than 82% compared with alternatives), EOG Resources shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for EOG Resources. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 65% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 17 which means that the stock price compared with what market professionals expect for future profits is higher than 83% of comparable companies, indicating a low value concerning EOG Resources's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 31 which means that the stock price compared with what market professionals expect for future profit levels is higher than 69% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 23 is also low. Compared with invested capital, the stock price is higher than for 77% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 18, is a sell recommendation based on EOG Resources's stock price compared with the company's operational size and dividend yields. Should dividend investors pick EOG Resources? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose EOG Resources only if they reasonably expect the low current profit levels to be transitory. ...read more

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Growth Strategy: EOG Resources Growth Momentum good

GROWTH METRICS	December 28, 2023
REVENUE GROWTH
REVENUE GROWTH	46
PROFIT GROWTH
PROFIT GROWTH	82
CAPITAL GROWTH
CAPITAL GROWTH	42
STOCK RETURNS
STOCK RETURNS	57
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	65

ANALYSIS: With an Obermatt Growth Rank of 65 (better than 65% compared with alternatives), EOG Resources shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for EOG Resources. Profit Growth has a rank of 82, which means that currently professionals expect the company to grow its profits more than 82% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 57 (above 57% of alternative investments). But Sales Growth has a below the median rank of 46, which means that, currently, professionals expect the company to grow less than 54% of its competitors, and Capital Growth also has a lower rank of 42. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 65, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for EOG Resources. ...read more

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Safety Strategy: EOG Resources Debt Financing Safety very solid

SAFETY METRICS	December 28, 2023
LEVERAGE
LEVERAGE	78
REFINANCING
REFINANCING	96
LIQUIDITY
LIQUIDITY	89
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	98

ANALYSIS: With an Obermatt Safety Rank of 98 (better than 98% compared with alternatives) for 2023, the company EOG Resources has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of EOG Resources is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for EOG Resources. Leverage is at 78, meaning the company has a below-average debt-to-equity ratio. It has less debt than 78% of its competitors. Refinancing is at a rank of 96, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 96% of its competitors. Finally, Liquidity is also good at a rank of 89, which means that the company generates more profit to service its debt than 89% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 98 (better than 98% compared with alternatives), EOG Resources has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. ...read more

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Combined financial peformance: EOG Resources Top Financial Performance

COMBINED PERFORMANCE	December 28, 2023
VALUE
VALUE	18
GROWTH
GROWTH	65
SAFETY
SAFETY	89
COMBINED
COMBINED	82

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), EOG Resources (Oil & Gas Production, USA) shares have much better financial characteristics than comparable stocks. Shares of EOG Resources are low in value (priced high) with a consolidated Value Rank of 18 (worse than 82% of alternatives). But they show above-average growth (Growth Rank of 65) and are safely financed (Safety Rank of 98, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on EOG Resources's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company EOG Resources exhibits low value (Obermatt Value Rank of 18), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 65). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 98) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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