We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EQT Beats Industry While Trading Cheaply: What Investors Should Know
Read MoreHide Full Article
Key Takeaways
EQT stock rose 24.6% in six months, beating the energy sector and broader market declines.
Analysts expect 2025 EPS to jump 116.2% and revenue to climb 32.4% year over year.
EQT's price-to-book ratio of 1.36X reflects a deep discount versus the industry average.
Shares of EQT Corporation (EQT - Free Report) have gained 24.6% in the past six months, outperforming the oil-energy sector and the Zacks S&P 500 composite’s declines of 15.6% and 0.9%, respectively. The company has a market capitalization of $32.3 billion.
Image Source: Zacks Investment Research
Positive Outlook on EQT’s Growth Trajectory
The Zacks Consensus Estimate for EQT Corp’s 2025 earnings per share indicates a year-over-year increase of 116.2%. The consensus estimate for revenues is pegged at $8.1 billion, suggesting a 32.4% year-over-year improvement.
Long-term earnings growth is expected to be 46.3%, better than the industry average of 16.9%. EQT has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.
Average Target Price for EQT Suggests Upside
Based on short-term price targets offered by 21 analysts, the Zacks average price target is $60.14 per share. The average suggests an 11.4% upside from the last closing price.
Image Source: Zacks Investment Research
EQT Shares Are Cheap
EQT shares are trading at a discount to the industry. Its price-to-book value of 1.36X is lower than the industry average of 3.28X. Shares of other energy companies like Antero Resources (AR - Free Report) , Permian Resources Corporation (PR - Free Report) and Northern Oil and Gas (NOG - Free Report) are also trading at a multiple lower than the industry average.
Image Source: Zacks Investment Research
Factors to Consider
With a primary focus on the Appalachian Basin, EQT Corp is the largest natural gas producer in the United States. The company employs advanced technologies, such as horizontal drilling, to operate in the prolific gas basin. It has several untapped premium oil and natural gas drilling locations in the core Appalachian Basin, contributing to an optimistic production outlook.
EQT’s $1.8-billion acquisition of Olympus Energy is expected to yield an attractive 15% unlevered free cash flow yield and a 3.4X adjusted EBITDA multiple over 2025-2027. The bolt-on acquisition adds 90,000 net acres adjacent to the company’s core footprint, 500 MMcf/d of production, and long-term breakevens aligned with the company’s already low-cost profile.
The company also stands out for its environmental leadership, having achieved its Scope 1 and 2 net-zero goal ahead of schedule. Emission reductions from pneumatic device replacements, frac fleet electrification, and offset projects, such as a 10-million-ton carbon sequestration initiative with West Virginia, demonstrate a scalable ESG model at low cost.
In the first quarter of 2025, EQT generated more than $1.04 billion in free cash flow, nearly double that of its closest peer, demonstrating the strength of its vertically integrated platform and disciplined cost structure. Operating costs and capital expenditures were significantly below guidance, and average realized pricing was enhanced through tactical production maneuvers that responded effectively to favorable winter market dynamics.
EQT Corp has investment-grade credit ratings from S&P and Fitch with a stable outlook. Notably, the exploration and production company is diligently working to lower its debt burden, evident in the continuous strides toward achieving a long-term debt target of $5-7 billion.
Risks
One significant risk factor of EQT Corp relates to commodity price volatility, particularly in the natural gas market. EQT highlights that fluctuations in natural gas prices can significantly impact their business operations. These price swings are influenced by various external forces, including global energy demand, weather patterns, supply disruptions, geopolitical events and regulatory developments.
The company acknowledges that natural gas markets have entered an era of heightened volatility, characterized by “fat tail” price distributions post-2020, where prices can rapidly oscillate between extreme lows and highs due to tighter infrastructure, globalized demand, and limited storage relative to consumption needs. This elevated unpredictability can challenge EQT’s ability to forecast revenues, manage costs, and make long-term capital allocation decisions effectively.
Image: Shutterstock
EQT Beats Industry While Trading Cheaply: What Investors Should Know
Key Takeaways
Shares of EQT Corporation (EQT - Free Report) have gained 24.6% in the past six months, outperforming the oil-energy sector and the Zacks S&P 500 composite’s declines of 15.6% and 0.9%, respectively. The company has a market capitalization of $32.3 billion.
Image Source: Zacks Investment Research
Positive Outlook on EQT’s Growth Trajectory
The Zacks Consensus Estimate for EQT Corp’s 2025 earnings per share indicates a year-over-year increase of 116.2%. The consensus estimate for revenues is pegged at $8.1 billion, suggesting a 32.4% year-over-year improvement.
Long-term earnings growth is expected to be 46.3%, better than the industry average of 16.9%. EQT has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.
Average Target Price for EQT Suggests Upside
Based on short-term price targets offered by 21 analysts, the Zacks average price target is $60.14 per share. The average suggests an 11.4% upside from the last closing price.
Image Source: Zacks Investment Research
EQT Shares Are Cheap
EQT shares are trading at a discount to the industry. Its price-to-book value of 1.36X is lower than the industry average of 3.28X. Shares of other energy companies like Antero Resources (AR - Free Report) , Permian Resources Corporation (PR - Free Report) and Northern Oil and Gas (NOG - Free Report) are also trading at a multiple lower than the industry average.
Image Source: Zacks Investment Research
Factors to Consider
With a primary focus on the Appalachian Basin, EQT Corp is the largest natural gas producer in the United States. The company employs advanced technologies, such as horizontal drilling, to operate in the prolific gas basin. It has several untapped premium oil and natural gas drilling locations in the core Appalachian Basin, contributing to an optimistic production outlook.
EQT’s $1.8-billion acquisition of Olympus Energy is expected to yield an attractive 15% unlevered free cash flow yield and a 3.4X adjusted EBITDA multiple over 2025-2027. The bolt-on acquisition adds 90,000 net acres adjacent to the company’s core footprint, 500 MMcf/d of production, and long-term breakevens aligned with the company’s already low-cost profile.
The company also stands out for its environmental leadership, having achieved its Scope 1 and 2 net-zero goal ahead of schedule. Emission reductions from pneumatic device replacements, frac fleet electrification, and offset projects, such as a 10-million-ton carbon sequestration initiative with West Virginia, demonstrate a scalable ESG model at low cost.
In the first quarter of 2025, EQT generated more than $1.04 billion in free cash flow, nearly double that of its closest peer, demonstrating the strength of its vertically integrated platform and disciplined cost structure. Operating costs and capital expenditures were significantly below guidance, and average realized pricing was enhanced through tactical production maneuvers that responded effectively to favorable winter market dynamics.
EQT Corp has investment-grade credit ratings from S&P and Fitch with a stable outlook. Notably, the exploration and production company is diligently working to lower its debt burden, evident in the continuous strides toward achieving a long-term debt target of $5-7 billion.
Risks
One significant risk factor of EQT Corp relates to commodity price volatility, particularly in the natural gas market. EQT highlights that fluctuations in natural gas prices can significantly impact their business operations. These price swings are influenced by various external forces, including global energy demand, weather patterns, supply disruptions, geopolitical events and regulatory developments.
The company acknowledges that natural gas markets have entered an era of heightened volatility, characterized by “fat tail” price distributions post-2020, where prices can rapidly oscillate between extreme lows and highs due to tighter infrastructure, globalized demand, and limited storage relative to consumption needs. This elevated unpredictability can challenge EQT’s ability to forecast revenues, manage costs, and make long-term capital allocation decisions effectively.
Hence, it is better to stay cautious about this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.