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EOG Resources (EOG): Reassessing Valuation After Raymond James’ Bullish Call and Strong Q3 Execution

Simply Wall St · 2d ago

Raymond James is doubling down on its upbeat stance toward EOG Resources (EOG) after third quarter results showed production, EBITDA, and free cash flow all meeting or beating expectations, supported by leaner costs and lower cash taxes.

See our latest analysis for EOG Resources.

Even with that stronger third quarter story and new international wells in Bahrain and soon the UAE, EOG’s share price return is still negative year to date. Its five year total shareholder return near 166 percent shows the longer term compounding story is intact, and current momentum looks more like a pause than a breakdown.

If EOG’s mixed near term moves have you thinking about diversification, this could be a good moment to explore aerospace and defense stocks as another pocket of potential opportunity.

With earnings still growing, a sizable discount to analyst targets, and fresh international optionality, is EOG Resources quietly undervalued today, or is the market already pricing in its next leg of production-led growth?

Most Popular Narrative: 20.9% Undervalued

Against EOG Resources last close of $109.06, the most followed narrative is anchored on a higher fair value rooted in sustained cash generation and disciplined growth.

Ongoing advancements in proprietary drilling technology, high-frequency sensors, and generative AI are driving greater operational efficiencies, stronger well performance, and meaningful reductions in drilling and completion costs across EOG's portfolio, expanding net margins and supporting sustainable earnings growth.

Read the complete narrative.

Want to see the math behind this optimism? The narrative leans on steady revenue expansion, resilient margins, and a richer earnings multiple than today. Curious which levers matter most?

Result: Fair Value of $137.81 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, accelerating renewables adoption and misfired Encino integration could pressure long term demand, margins, and ultimately challenge this undervaluation thesis.

Find out about the key risks to this EOG Resources narrative.

Build Your Own EOG Resources Narrative

If this perspective does not fully align with your own view, you can dive into the numbers, shape your own thesis in minutes, and Do it your way.

A great starting point for your EOG Resources research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.