EOG Resources (EOG) saw a positive improvement to its Relative Strength (RS) Rating on Thursday, with an upgrade from 72 to 81. The upgrade is especially significant because market research shows that the best stocks typically have an RS Rating north of 80 in the early stages of their moves. EOG stock slid 1% to 74.56 Thursday afternoon.
The 81 RS Rating means that EOG stock outperformed 81% of all stocks, regardless of industry group, over the past year. The energy group as a whole is rising fast amid rising oil and gas prices. Shale oil play Devon Energy is the IBD Stock Of The Day today.
EOG Stock Among Top 5% On Composite
Among other key ratings, EOG Resources touts a 92 EPS Rating, of a best-possible 99. The 92 rating puts it in the top 8% of stocks in terms of recent and long-term profit growth. Additionally, EOG stock has a powerful 95 IBD Composite Rating, putting it in the top 5% in that category.
The Composite Rating compiles scores on five key fundamental and technical metrics: earnings growth and sales growth, profit margins, return on equity, and relative price performance.
Taking a look at top and bottom line numbers, EOG Resources has posted four quarters of increasing earnings growth. Sales gains have also increased over the same time frame. Last quarter, EOG Resources recorded an 852% rise in EPS to $1.73, reversing from a 23-cent loss a year ago. Revenue in its most recent quarter grew 275% to $4.14 billion. From a 31.22 low on Oct. 29 last year, EOG stock has more than doubled to above 74.
EOG stock holds the No. 8 rank among its peers in the Oil&Gas-U.S. Exploration & Production industry group. Diamondback Energy (FANG) and Cimarex Energy (XEC) are also among the group’s highest-rated stocks. The group is ranked a healthy No. 40 from the top of IBD’s list of 197 industry groups. CAN SLIM investors seek stocks like EOG that are in the top quartile of industry groups.
EOG stock is building a consolidation with an 88.09 buy point. See if the stock can clear the breakout price in volume at least 40% above average.
When you’re researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD’s unique Relative Strength Rating measures share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock’s price performance over the last 52 weeks stacks up against all the other stocks in our database.
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