Energy Stocks to Sell: EOG Resources (EOG)
Let’s be clear: EOG Resources (EOG) has been one of the most successful unconventional energy stocks in the United States. By tapping the Eagle Ford and Bakken, EOG has become the energy stock to beat when it comes to rising oil production.
It also means that EOG is getting really expensive.
EOG stock managed to produce a hefty 15% return so far this year. That’s on top of the 30% gain it logged in 2013 and the 20% pop it racked-up in 2012. All in all, early investors are sitting on some pretty hefty capital gains. And as they say “pigs get slaughtered. Trimming back some of your EOG stock makes a whole lot of sense after such huge back-to-back-to-back wins.
And besides, EOG is one of the most expensive energy stocks you can buy. Shares are currently trading for a P/E of nearly 24, and forward price-to-earnings metrics are still an industry high at 18. EOG isn’t a bad stock — in fact, it has been great. However, EOG is just getting to be too pricey. Longer-holding investors may want to lighten up a bit and lock in some gains.