Based in Pittsburgh, Pennsylvania, EQT Corporation (EQT), with a market cap of $13.5 billion, is a leading player in the natural gas industry. Specializing in exploration and production in the Appalachian Basin, EQT is known for its commitment to maximizing output and minimizing costs through efficient drilling and resource management strategies.
Shares of this natural gas producer have significantly underperformed the broader market over the past 52 weeks. EQT has dipped 27.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 18.2%. In 2024, EQT saw a YTD decline of 19.6%, lagging behind SPX's 11.5% rise.
Zooming in further, EQT has also fallen short of the US Oil & Gas Explor & Prod iShares ETF's (IEO) 1.3% loss over the past year and a 1.9% gain on a YTD basis.
EQT's underperformance over the past year is primarily due to a sharp drop in commodity price realizations and rising operating expenses, both of which have significantly weakened its profitability. Moreover, the stock fell 1.7% on Jul. 23 due to concerns over the company's weaker-than-expected Q2 performance despite higher sales volumes. Additionally, competition fears emerged as Chesapeake Energy is poised to overtake EQT after its merger with Southwestern Energy.
For the current fiscal year, ending in December, analysts expect EQT's EPS to decline 37.1% year over year to $1.44. However, the company's earnings surprise history is promising. It beat or met the consensus estimates in each of the last four quarters.
Out of the 21 analysts assessing EQT stock, the consensus rating is "Moderate Buy." That's based on 11 "Strong Buy" ratings, one "Moderate Buy," and nine "Holds.”
This configuration is slightly more bullish than three months before, with 10 analysts suggesting a "Strong Buy."
On Aug. 5, Jefferies analyst Lloyd Byrne reiterated a "Buy" rating on EQT, setting a price target of $48, which implies a potential upside of 55.3% from the current price levels.
The mean price target of $43.95 represents a premium of 42.2% to EQT's current levels. The Street-high price target of $55, implying a potential upside of around 78% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
