Bearish signal on EOG Resources with earnings on the horizon
Oil & gas exploration company EOG Resources (NYSE: EOG) is set to report earnings next week and analysts expect the company to report earnings of $1.13. That is a sharp decline from the $1.75 the company earned in the same period last year, in fact it’s a drop of 35.4% that analysts expect. Earnings fell 4% in the second quarter and analysts expect earnings to fall by 12% for 2019 as a whole.
Other fundamental indicators aren’t near as bad as the earnings growth. Sales have grown at a rate of 43% per year over the last three years and they were up by 11% in the second quarter. The company sports a return on equity of 18.1% and a profit margin of 23.9%, both of which are slightly above average.
Despite what seem to be decent fundamentals, the company doesn’t score very well with Tickeron’s Fundamental Ratings. None of the various ratings are in the top half of readings when compared to other companies. The PE Growth Rating for EOG is 56. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents. A rating of 1 indicates highest PE growth while a rating of 100 indicates lowest PE growth.
The Tickeron SMR rating for the company is 62. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 89 indicates that the company is significantly overvalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization.
The Tickeron Price Growth Rating for this company is 92, indicating slightly worse than average price growth. EOG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents. A rating of 1 points to highest price growth (largest percent return), while a rating of 100 points to lowest price growth (smallest percent return).
The Tickeron Profit vs. Risk Rating for the company is 100, indicating that the returns do not compensate for the risks. EOG’s unstable profits reported over time resulted in significant drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating for the industry is 99, placing this stock worse than average.
In addition to the fundamental shortcomings, the stock has been trending lower over the last six months and a trend channel has formed that defines the various cycles within the overall trend. The stock isn’t quite up to the upper rail of the downward sloped channel, but it seems to finding resistance at its 50-day moving average.
Something else that stands out about the chart is the daily stochastic readings being in overbought territory and making a bearish crossover on October 28. In the last three instances where this has happened, the stock has fallen at least 25% in the next few months.
If the bearish crossover from the stochastics wasn’t scary enough for you, the Tickeron Trend Prediction Engine generated a bearish signal for EOG on October 25. The signal calls for a decline of at least 4% over the next month and it shows a confidence level of 77%. Past predictions on EOG have been successful 74% of the time.
Even as EOG has struggled fundamentally and as the stock has been trending lower, the sentiment toward the stock is still rather bullish. There are 38 analysts following the stock with 30 “buy” ratings and eight “hold” ratings. This puts the buy percentage at 78.9% and that is above average.
The short interest ratio is below average at 2.4 and the number of shares sold short fell by 890K in the first half of October. The drop in the number of shares sold short is indicative of increasing optimism.
EOG in upward trend: price rose above 50-day moving average on June 06, 2025
EOG moved above its 50-day moving average on June 06, 2025 date and that indicates a change from a downward trend to an upward trend. In of 41 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 61 cases where EOG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 10-day moving average for EOG crossed bullishly above the 50-day moving average on June 11, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EOG advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 259 cases where EOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EOG moved out of overbought territory on June 23, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 30, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on EOG as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for EOG turned negative on June 27, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EOG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EOG broke above its upper Bollinger Band on June 10, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EOG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.680) is normal, around the industry mean (4.654). P/E Ratio (9.982) is within average values for comparable stocks, (19.615). EOG's Projected Growth (PEG Ratio) (44.472) is very high in comparison to the industry average of (4.890). Dividend Yield (0.026) settles around the average of (0.085) among similar stocks. P/S Ratio (3.269) is also within normal values, averaging (164.964).
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General Information
a developer of natural gas and crude oil
Industry OilGasProduction
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