Pittsburgh, Pennsylvania-based EQT Corporation (EQT) produces, gathers, and transmits natural gas. Valued at a market cap of $32 billion, the company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers. It also provides marketing and contractual pipeline capacity management services.
This energy company has considerably outpaced the broader market over the past 52 weeks. Shares of EQT have surged 65.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 20.1%. Moreover, the stock is up 11.7%, compared to SPX’s 8.6% YTD rise.
Zooming in further, EQT’s outperformance looks even more pronounced when compared to the SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 9.4% downtick over the past 52 weeks and 6.6% loss on a YTD basis.
EQT delivered its Q2 results on Jul. 22. The company’s overall revenue grew by a notable 168.5% year-over-year to $2.6 billion, with natural gas, natural gas liquids and oil sales increasing by 91.2%. Higher sales volume and increased average realized prices supported its top-line growth. Moreover, its adjusted EPS came in at $0.45, up from an adjusted loss of $0.08 recorded in the year-ago quarter and 2.3% above the consensus estimates. Despite this, its shares plunged 4.4% in the following trading session.
For the current fiscal year, ending in December, analysts expect EQT’s EPS to grow 105.6% year over year to $3.31. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a "Strong Buy” which is based on 18 “Strong Buy,” one "Moderate Buy,” and four “Hold” ratings.
This configuration is more bullish than two months ago, with 15 analysts suggesting a “Strong Buy” rating.
On Aug. 2, Jefferies Financial Group Inc. (JEF) analyst Lloyd Byrne maintained a "Buy" rating on EQT and set a price target of $70, implying a 36.5% potential upside from the current levels.
The mean price target of $64.39 represents a 25.5% premium from EQT’s current price levels, while the Street-high price target of $75 suggests an ambitious upside potential of 46.2%.
On the date of publication, Neharika Jain 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.
