With a market cap of $76.6 billion, EOG Resources, Inc. (EOG) is an energy company engaged in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. Its operations span major producing basins across the United States, as well as the Republic of Trinidad and Tobago and other international locations.
Companies valued at $10 billion or more are generally considered "large-cap" stocks and EOG Resources fits this criterion perfectly. In addition to upstream activities, the company provides crude oil and condensate services, along with gathering, processing, and marketing operations.
Shares of the leading oil and gas producer have slipped 5.5% from its 52-week high of $153.67. EOG stock has risen 3.2% over the past three months, lagging behind the State Street SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 11.7% increase over the same time frame.
The stock is up 38.5% on a YTD basis, underperforming XOP's 51.3% surge. Longer term, shares of the Houston, Texas-based company have soared 19.6% over the past 52 weeks, compared to XOP’s 44.5% gain over the same time frame.
Yet, EOG stock has been trading above its 50-day moving average since January.
EOG Resources has underperformed due to oil-price volatility, geopolitical uncertainty, commodity-price risks, delayed overseas exploration projects, and a cautious approach to increasing capital spending have also limited enthusiasm for the stock.
In comparison, rival Occidental Petroleum Corporation (OXY) has outpaced EOG stock. OXY stock has soared 46.4% on a YTD basis and 29.1% over the past year.
Despite EOG's underperformance, analysts are moderately optimistic about its prospects. The stock has a consensus “Moderate Buy” rating overall from the 31 analysts covering it and the mean price target of $160.04 is a premium of 10.2% to current levels.
On the date of publication, Sohini Mondal 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.