EOG Resources, Inc. (EOG), headquartered in Houston, Texas, is a leading independent exploration and production company focusing on the oil and gas industry.  With a market cap of $72.8 billion, the company explores, develops, produces, and markets crude oil, natural gas liquids, and natural gas, primarily in producing basins. The leading oil and gas producer is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Thursday, Nov. 7.

Ahead of the event, analysts expect EOG to report a profit of $2.94 per share on a diluted basis, down 14.5% from $3.44 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect EOG to report EPS of $11.79, up marginally from $11.69 in fiscal 2023. Its EPS is expected to rise marginally year over year to $11.80 in fiscal 2025. 

EOG stock has significantly underperformed the S&P 500’s ($SPX) 38.6% gains over the past 52 weeks, with shares down 5.6% during this period. Similarly, it underperformed the Energy Select Sector SPDR Fund’s (XLE) marginal losses over the same time frame.

EOG's struggles can be traced back to the difficult macroeconomic conditions it has faced, such as slower growth in domestic oil supply and volatile natural gas prices. These factors have created uncertainty for EOG's businesses, particularly when commodity prices were low. Moreover, geopolitical tensions in the Middle East, concerns about weakening demand in China, and predictions of a crude surplus in the coming year are key factors contributing to this challenging environment.

On Aug. 1, EOG shares closed down more than 2% after reporting its Q2 results. Its adjusted EPS of $3.16 topped Wall Street expectations of $2.98. The company’s revenue was $6 billion, missing Wall Street forecasts of $6.1 billion.

Analysts’ consensus opinion on EOG stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 27 analysts covering the stock, 14 advise a “Strong Buy” rating, and 13 give a “Hold.” EOG’s average analyst price target is $141.89, indicating a potential upside of 12.9% from the current levels.

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