Interesting chart on EOG Resources (EOG) as bearish signal generated ahead of earnings
Oil and natural gas producer EOG Resources (NYSE: EOG) is an interest stock. The chart shows a downward trend with an interesting trend line and the company’s fundamentals are unusual as well.
Looking at the daily chart we see that the stock gapped lower back on October 23. By connecting the opening price from that day with high on December 4, you get a downward sloped trend line and the stock has just found resistance at that trend line within the last few days.
We also see that the daily stochastic readings were in overbought territory and made a bearish crossover on February 21. The drop in the stock on that day caused the stock to drop below its 50-day moving average.
The Tickeron AI Prediction tool generated a bearish signal on the stock on February 19 and that signal came with a confidence level of 65%. The signal calls for a drop in EOG’s stock of at least 4% over the next month and previous predictions have been accurate 70% of the time.
Looking at EOG’s fundamentals, we see some confusing readings on different indicators. The company has seen flat earnings over the last three years, but the most recent quarterly report showed earnings growth of 821%. The company has seen sales grow by an average of 20% per year over the last three years.
The return on equity is below average at 4.3% and the profit margin is on the low side as well at 9.2%.
The company is set to announce earnings on February 26.
EOG sees MACD Histogram just turned negative
EOG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 15, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for EOG moved out of overbought territory on April 12, 2024. 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 30 similar instances where the indicator moved out of overbought territory. In of the 30 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 April 17, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on EOG as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 April 01, 2024. 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.
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 64 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 50-day moving average for EOG moved above the 200-day moving average on April 17, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EOG advanced for three days, in of 300 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 254 cases where EOG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 75, placing this stock better than average.
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 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 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 (5.854). P/E Ratio (9.982) is within average values for comparable stocks, (18.621). EOG's Projected Growth (PEG Ratio) (44.472) is very high in comparison to the industry average of (5.068). Dividend Yield (0.026) settles around the average of (0.083) among similar stocks. P/S Ratio (3.269) is also within normal values, averaging (148.486).
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Fundamental Analysis Ratings
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General Information
a developer of natural gas and crude oil
Industry OilGasProduction