Time To Buy EOG Resources Stock?
EOG Resources (NYSE: EOG) stock looks attractive at its current price of around $120, trading below its historical averages despite solid fundamentals. The company’s stock slid 4% over the past week, underperforming the S&P 500, which gained 3%. Similarly, shares of Chevron Corporation (NYSE: CVX), Exxon Mobil (NYSE: XOM), and ConocoPhillips (NYSE: COP) each declined by 4%, 5%, and 7%, respectively. As tensions in the Middle East eased, oil-linked stocks lost some of their premium. Investors reacted positively to signs of de-escalation, particularly after a fragile ceasefire between Iran and Israel, boosting confidence that the Strait of Hormuz would stay open, and reducing fears of supply disruptions. The result: Brent crude dipped to about $67 per barrel, marking its lowest level in nearly two weeks.
EOG Resources owns a multi-basin, low-cost portfolio with over 10 billion barrels of oil equivalent of accessible resources. In Q1, the company returned approximately $806 million to shareholders through share repurchases—part of a sustained program that has reduced its share count by around 7% over the past three years—while maintaining a rising dividend track. EOG’s $5.6 billion acquisition of Encino Acquisition Partners significantly expands its footprint in the Utica shale, boosting its net acreage to 1.1 million acres. The deal is expected to increase 2025 EBITDA by 10% and free cash flow by 9%. See Buy or Sell EOG Resources Stock?
That said, investors seeking upside with lower volatility than a single stock, might consider the Trefis High Quality portfolio , which has consistently outperformed the S&P 500, delivering over 90% total return since its inception in September 2020. It offers diversified exposure to strong companies with steady performance, offering a smoother ride compared to the commodity‑driven volatility of EOG.
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How Does EOG Resources’ Valuation Look vs. The S&P 500?
Going by what you pay per dollar of sales or profit, EOG stock looks cheap compared to the broader market.
• EOG Resources has a price-to-sales (P/S) ratio of 2.9 vs. a figure of 3.1 for the S&P 500
• Additionally, the company’s price-to-free cash flow (P/FCF) ratio is 12.4 compared to 20.9 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 11.2 vs. the benchmark’s 26.9
How Have EOG Resources’ Revenues Grown Over Recent Years?
EOG Resources’ Revenues have grown marginally over recent years.
• EOG Resources has seen its top line grow at an average rate of 3.0% over the last 3 years (vs. increase of 5.5% for S&P 500)
• Its revenues have declined 0.2% from $23 Bil to $23 Bil in the last 12 months (vs. growth of 5.5% for S&P 500)
• Also, its quarterly revenues fell 7% to $5.7 Bil in the most recent quarter from $5.9 Bil a year ago (vs. 4.8% improvement for S&P 500)
How profitable is EOG Resources?
EOG Resources’ profit margins are considerably higher than most companies in the Trefis coverage universe.
• EOG Resources’ Operating Income over the last four quarters was $8.3 Bil, which represents a considerably high Operating Margin of 35.6%
• EOG Resources’ Operating Cash Flow (OCF) over this period was $12 Bil, pointing to a considerably high OCF Margin of 49.3% (vs. 14.9% for S&P 500)
• For the last four-quarter period, EOG Resources’ Net Income was $6.1 Bil – indicating a considerably high Net Income Margin of 26.0% (vs. 11.6% for S&P 500)
Does EOG Resources look financially stable?
EOG Resources’ balance sheet looks strong.
• EOG Resources’ Debt figure was $4.7 Bil at the end of the most recent quarter, while its market capitalization is $69 Bil (as of 6/22/2025). This implies a strong Debt-to-Equity Ratio of 6.8% (vs. 19.4% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $6.6 Bil of the $47 Bil in Total Assets for EOG Resources. This yields a strong Cash-to-Assets Ratio of 14.0%
How resilient is EOG stock during a downturn?
EOG stock has fared much worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
Inflation Shock (2022)
• EOG stock fell 34.8% from a high of $145.93 on 7 June 2022 to $95.12 on 14 July 2022, vs. 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 increased to a high of $148.26 on 8 November 2022 and currently trades at around $120
Covid Pandemic (2020)
• EOG stock fell 66.7% from a high of $89.29 on 7 January 2020 to $29.76 on 18 March 2020, vs. 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, vs. 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 all the pieces together: What it means for EOG stock
In summary, EOG Resources’ performance across the parameters detailed above is as follows:
• Growth: Neutral
• Profitability: Extremely Strong
• Financial Stability: Very Strong
• Downturn Resilience: Very Weak
• Overall: Strong
Taken together with its very low valuation, this makes the stock look attractive and a good buy at the current price.
While EOG stock looks promising, investing in a single stock can be risky. You could explore the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics.
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