GrowthTurtle
Data Science PhD & IEEE Fellow, Ex-Two Sigma
EOG Resources is cheap against its sales, with fair value at $221.66 to $282.12, or 5x mid-cycle sales give or take 12%. At $141.31 it trades 36% below the low end of fair, with a pullback zone at $115.65. This is a levels-only read off reported earnings and revenue estimates, with no fundamental work. x.comÂ
EOG Resources is deeply undervalued on EV/EBITDA, a big discount given where oil prices are now, and the chart looks strong. x.comÂ
EQT, Range Resources, Expand Energy, Magnolia Oil & Gas and EOG Resources are cyclicals catching an earnings tailwind before the crowd notices, the setup Peter Lynch loved. They passed a screen alongside Coterra, all natural gas or oil producers with disciplined balance sheets and forward P/Es of 9-12. x.comÂ
Occidental Petroleum is mispriced at about 8.4x trailing earnings and an 8.7% free cash flow yield during an oil shock. Eight times earnings in an oil shock is not a valuation but a clerical error with a ticker symbol. Iran cannot beat the US Navy, so it is waiting out America's vote in 49 days, since Iran does not vote until 2028; owning Occidental beats hiding in Treasuries. x.comÂ
