EOG Resources (NYSE: EOG) stock appears appealing at its present price of approximately $120, trading below its historical averages despite robust fundamentals. The company’s stock dropped 4% in the last week, underperforming the S&P 500, which increased by 3%. Likewise, shares of Chevron Corporation (NYSE: CVX), Exxon Mobil (NYSE: XOM), and ConocoPhillips (NYSE: COP) each decreased by 4%, 5%, and 7%, respectively. As tensions in the Middle East subsided, oil-linked stocks lost some of their premium. Investors responded positively to indications of de-escalation, notably following a fragile ceasefire between Iran and Israel, which enhanced confidence that the Strait of Hormuz would remain open and alleviated concerns regarding supply disruptions. The outcome: Brent crude fell to approximately $67 per barrel, representing its lowest price in almost two weeks.
EOG Resources possesses a multi-basin, low-cost portfolio containing over 10 billion barrels of oil equivalent of accessible resources. In Q1, the company returned roughly $806 million to its shareholders through share buybacks—part of a consistent program that has decreased its share count by approximately 7% over the last three years—while sustaining a growing dividend trajectory. EOG’s $5.6 billion acquisition of Encino Acquisition Partners significantly broadens its footprint in the Utica shale, expanding its net acreage to 1.1 million acres. The transaction is expected to enhance 2025 EBITDA by 10% and free cash flow by 9%. See Buy or Sell EOG Resources Stock?
That said, investors looking for upside with less volatility than a single stock, may want to consider the Trefis High Quality portfolio , which has routinely outperformed the S&P 500, achieving more than 90%total return since its launch in September 2020. It provides diversified exposure to strong companies with consistent performance, offering a smoother experience compared to the volatility driven by commodities in EOG.
How Does EOG Resources’ Valuation Compare to The S&P 500?
Based on what you pay per dollar of sales or profit, EOG stock appears inexpensive when compared to the broader market.
• EOG Resources has a price-to-sales (P/S) ratio of 2.9 compared to a figure of 3.1 for the S&P 500
• Furthermore, the company’s price-to-free cash flow (P/FCF) ratio is 12.4 in contrast to 20.9 for the S&P 500
• Additionally, it has a price-to-earnings (P/E) ratio of 11.2 against the benchmark’s 26.9
How Have EOG Resources’ Revenues Changed Over Recent Years?
EOG Resources’ Revenues have seen a slight increase over recent years.
• EOG Resources has experienced its top line grow at an average rate of 3.0% over the last 3 years (compared to an increase of 5.5% for the S&P 500)
• Its revenues have diminished by 0.2% from $23 Billion to $23 Billion in the last 12 months (compared to growth of 5.5% for the S&P 500)
• Moreover, its quarterly revenues decreased by 7% to $5.7 Billion in the latest quarter from $5.9 Billion a year prior (compared to a 4.8% improvement for the S&P 500)
How profitable is EOG Resources?
EOG Resources’ profit margins are significantly higher than most companies within the Trefis coverage universe.
• EOG Resources’ Operating Income for the past four quarters was $8.3 Billion, representing a considerably high Operating Margin of 35.6%
• EOG Resources’ Operating Cash Flow (OCF) during this period was $12 Billion, indicating a considerably high OCF Margin of 49.3% (compared to 14.9% for the S&P 500)
• For the last four-quarter period, EOG Resources’ Net Income stood at $6.1 Billion – suggesting a considerably high Net Income Margin of 26.0% (compared to 11.6% for the S&P 500)
Is EOG Resources financially stable?
EOG Resources’ balance sheet appears robust.
• EOG Resources’ Debt stood at $4.7 Billion at the end of the most recent quarter, while its market capitalization is $69 Billion (as of 6/22/2025). This indicates a strong Debt-to-Equity Ratio of 6.8% (compared to 19.4% for the S&P 500). [Note: A low Debt-to-Equity Ratio is preferable]
• Cash (including cash equivalents) constitutes $6.6 Billion of the $47 Billion in Total Assets for EOG Resources. This results in a strong Cash-to-Assets Ratio of 14.0%
How resilient is EOG stock during a downturn?
EOG stock has performed significantly worse than the benchmark S&P 500 index during some recent downturns. While investors are hoping for a soft landing in the U.S. economy, how severe might the outcome be if another recession occurs? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes.
Inflation Shock (2022)
• EOG stock decreased 34.8% from a high of $145.93 on 7 June 2022 to $95.12 on 14 July 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 7 November 2022
• Since then, the stock has risen to a high of $148.26 on 8 November 2022 and is currently trading at around $120
Covid Pandemic (2020)
• EOG stock dropped 66.7% from a high of $89.29 on 7 January 2020 to $29.76 on 18 March 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 8 October 2021
Global Financial Crisis (2008)
• EOG stock fell 68.2% from a high of $71.70 on 20 May 2008 to $22.80 on 2 March 2009, compared to a peak-to-trough decline of 56.8% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 11 July 2013
Putting It All Together: Implications for EOG Stock
In conclusion, EOG Resources’ performance across the aforementioned parameters can be summarized as follows:
• Growth: Neutral
• Profitability: Extremely Strong
• Financial Stability: Very Strong
• Downturn Resilience: Very Weak
• Overall: Strong
Together with its very low valuation, this positions the stock as attractive and a good buy at the current price.
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