What Makes EOG Resources (EOG) a Strong Momentum Stock: Buy Now?

Momentum investing revolves around the idea of ​​following a stock’s recent trend in one direction or the other. In a “long context,” investors will “buy high, but hope to sell even higher.” With this methodology, it is essential to take advantage of trends in a stock’s price; Once a stock sets a course, it is more than likely to continue moving in that direction. The goal is that once a stock follows a fixed trajectory, it results in timely and profitable trades.

Although many investors like to look for stock momentum, it can be very difficult to define. There is much debate around which metrics are best to focus on and which are poor indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps us solve this problem.

Below we look at EOG $EOG Resources (EOG)a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It’s also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. EOG Resources currently has a Zacks Rank of #2 (Buy). Our research shows that stocks with Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of “A or B” outperform the market over the following month.

You can see the current list of Zacks #1 Rank stocks here >>>

Ready to beat the market?

Let’s discuss some of the components of the Momentum Style Score for EOG this shows why this oil and gas company looks promising as a solid choice.

Looking at a stock’s short-term price activity is a great way to determine if it has momentum, as this can reflect both current interest in a stock and whether buyers or sellers have the upper hand at the time. It’s also useful to compare a stock to its industry; this can show investors the best companies in a particular area.

For EOGshares are up 7.81% over the past week, while the Zacks Oil and Gas – Exploration and Production – United States industry is up 4.45% over the same period. The stock also looks pretty good over a longer time frame, as the monthly price change of 16.51% also compares favorably to the industry’s performance of 6.62%.

While any stock can see its price rise, it takes a real winner to consistently beat the market. This is why it can also be useful to look at longer-term price indicators, such as performance over the last three months or the past year. Actions of EOG Resources increased by 41.14% in the last quarter and 16.88% in the last year. In comparison, the S&P 500 moved only -7.71% and 15.21%, respectively.

Investors should also pay attention to EOGThe average trading volume over 20 days. Volume is a useful element in many ways, and the 20-day average establishes a good price/volume benchmark; a rising stock with above-average volume is usually a bullish sign, while a falling stock with above-average volume is usually a bearish sign. EOG currently averages 5,821,782 shares over the last 20 days.

Profit outlook

The Zacks Momentum Style Score encompasses many elements, including estimate revisions and changes in a stock’s price. Investors should note that earnings estimates are also important to the Zacks Rank, and a good run here can be promising. We recently noticed this with EOG.

Over the past two months, 7 earnings estimates have moved up, compared to 2 down for the full year. These revisions helped to stimulate EOGThe consensus estimate of , rising from $9.05 to $12.87 over the past 60 days. Looking ahead to the next financial year, 5 estimates have increased, while there has been 1 downward revision over the same period.

Conclusion

Considering all these elements, it is not surprising that EOG is a #2 (Buy) Stock with a Momentum Score of A. If you’re looking for a new pick that’s expected to rise in the near term, be sure to hold EOG Resources on your short list.

Research chief names ‘best choice to double down’

From thousands of stocks, 5 Zacks experts have each chosen their favorite to skyrocket +100% or more in the months to come. From these 5, Research Director Sheraz Mian chooses one that has the most explosive advantage of all.

This company targets the millennial and generation Z audience, generating nearly $1 billion in revenue last quarter alone. A recent setback makes now the perfect time to jump on board. Of course, not all of our elite picks are winners, but this one could far outperform Zacks’ previous stocks, which are expected to double like Nano’sX $TWTR Imaging which has climbed +129.6% in just over 9 months.

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This article was originally published on Zacks Investment Research (zacks.com).

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