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Is EOG Resources, Inc. (EOG) the Best American Energy Stock to Buy Now?

We recently published a list of 11 Best American Energy Stocks to Buy Now. In this article, we are going to take a look at where EOG Resources, Inc. (NYSE:EOG) stands against other best American energy stocks to buy now.

On Friday, April 4, oil futures reached multiyear lows following China’s response to the tariffs imposed by the Trump administration. This sparks fear of a fall in demand for oil amid a full-blown trade war. The US benchmark for oil prices, West Texas Intermediate (WTI), fell over 7% to close at $61.99 per barrel and Brent crude futures dropped more than 6% to settle at $65.58. Crude has not traded at these levels since 2021.

READ ALSO: 10 Best EV Stocks to Buy Under $50 and 11 Undervalued Chemical Stocks to Buy Now.

Crude losses worsened as China announced it would impose additional tariffs of 34% on US goods. This announcement came as a response to President Trump’s levies, which include increased duties on China-made imports.

President Trump’s tariffs saw financial markets react strongly and crude oil prices sinking as traders assessed the potential impact of a trade war on demand. Energy-related stocks were set to extend losses after dragging the market down with sell-offs in the Dow, S&P 500, and Nasdaq.

Crude losses also accelerated because of a decision by the Organization of Petroleum Exporting Countries and its allies, OPEC+, to increase supply approximately three times more than expected starting in May.

Angie Gildea, KPMG US energy leader, said that markets are still “digesting tariffs” and that the combination of higher oil supply and concerns about a weaker global economy is putting downward pressure on oil prices. She pointed out that this could lead to a new chapter in a volatile market.

Although energy was not included in the latest tariffs announced by the Trump administration on Wednesday, April 2, the escalation of a global trade war could hurt oil demand.

Our Methodology

To compile our list of the 11 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest energy companies. We sorted our results based on market capitalization and picked the top 25 American stocks. Next, we focused on the 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 11 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

An oil rig in action in a vast desert, drilling for natural gas.

EOG Resources, Inc. (NYSE:EOG)

Number of Hedge Fund Holders: 62

EOG Resources, Inc. (NYSE:EOG) is an American energy company that focuses on the exploration, development, and production of crude oil and natural gas. The company has proved reserves in the United States and Trinidad. EOG Resources, Inc. (NYSE:EOG) is one of the best American stocks to buy now.

In 2024, the company generated $5.4 billion of free cash flow and returned $5.3 billion to shareholders through a combination of dividends and share repurchases. EOG Resources, Inc. (NYSE:EOG) also managed to reduce average well costs by 6% across its multi-basin operations in 2024. For 2025, the company announced a capital plan with an aim to grow oil production by 3% and total production by 6%. EOG Resources, Inc. (NYSE:EOG) expects total expenditures for the year to range from $6 to $6.4 billion. The capital plan includes drilling and completing 605 net wells across the company’s high-return multi-basin portfolio. Additionally, the company will also be funding strategic infrastructure projects and international opportunities, including exploration projects in Trinidad and Bahrain. EOG Resources, Inc. (NYSE:EOG) entered into a strategic participation agreement with Bapco Energies in Bahrain to evaluate a natural gas exploration prospect with planned drilling activity in 2025.

Overall, EOG ranks 10th on our list of best mid cap growth stocks. While we acknowledge the potential of EOG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than EOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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