With a market cap of $16.3 billion, EQT Corporation (EQT) is a leading player in the natural gas production industry, primarily focused on the Appalachian Basin. Based in Pittsburgh, Pennsylvania, the company specializes in natural gas exploration, production, and marketing, serving a wide range of customers across the United States.
Shares of the natural gas producer have significantly underperformed the broader market over the past 52 weeks. EQT has dipped 16.1% over this time frame, while the broader S&P 500 Index ($SPX) has increased 32.7%. In 2024, shares of EQT are down 2.9%, compared to SPX’s 21.2% gain on a YTD basis.
Looking further, EQT has also lagged behind the Energy Select Sector SPDR Fund’s (XLE) 4% gain over the past 52 weeks and 7.6% YTD return.
EQT Corporation has underperformed due to low natural gas prices and rising interest expenses. However, despite a slight revenue miss, the stock surged 3.4% following its better-than-expected Q3 adjusted EPS of $0.12 on Oct. 29. Additionally, the company exceeded sales volume guidance with 581 Bcfe, driven by operational efficiency and strong performance, while reducing capital expenditures below the low-end guidance. Additionally, EQT made significant headway in integrating Equitrans Midstream, achieving 60% of integration tasks and capturing $145 million in annualized synergies, strengthening investor confidence.
For the current fiscal year, ending in December, analysts expect EQT’s EPS to decline 39.3% year-over-year to $1.39 per share. However, the company’s earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
On Nov. 4, EQT stock rose 3.3% after UBS raised its price target to $42 and Piper Sandler lifted its target to $34, both maintaining “Neutral" ratings. This followed the company’s stronger-than-expected Q3 profitability and increased Q4 volume guidance, supported by higher capital expenditures, which are expected to decrease in 2025 due to cost-saving measures.
As of writing, EQT is trading below the mean price target of $42.48. The Street-high price target of $55 implies a potential upside of 46.5% from the current price.
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