Yahoo Finance CXO or EOG: Which Is the Better Value Stock Right Now?
Investors with an interest in Oil and Gas - Exploration and Production - United States stocks have likely encountered both Concho Resources (CXO) and EOG Resources (EOG). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Concho Resources has a Zacks Rank of #2 (Buy), while EOG Resources has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CXO has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CXO currently has a forward P/E ratio of 29.87, while EOG has a forward P/E of 425.98. We also note that CXO has a PEG ratio of 6.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EOG currently has a PEG ratio of 45.44.
Another notable valuation metric for CXO is its P/B ratio of 1.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, EOG has a P/B of 1.42.
These metrics, and several others, help CXO earn a Value grade of B, while EOG has been given a Value grade of C.
CXO sticks out from EOG in both our Zacks Rank and Style Scores models, so value investors will likely feel that CXO is the better option right now.
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Concho Resources Inc. (CXO) : Free Stock Analysis Report
EOG Resources, Inc. (EOG) : Free Stock Analysis Report
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