EQT Corporation

Based on a balanced assessment, EQT presents a compelling case primarily driven by valuation and improving fundamentals, though with some caution due to its recent price run-up.

From a technical perspective, the stock shows strong recent momentum with a 14.5% gain over the past month, pushing it is now approaching its 52-week high, which may act as a near-term resistance level. Fundamentally, EQT demonstrated impressive profitability improvement in Q4, with net income margin expanding significantly and robust EPS growth, indicating stronger operational performance. The company's solid interest coverage ratio also points to healthy debt-servicing capability. Most notably, valuation metrics are highly attractive; the forward P/E of 11.2 and an exceptionally low PEG ratio of 0.06 suggest the stock is substantially undervalued relative to its earnings growth prospects.

Recommendation: BUY

EQT represents a compelling investment opportunity based on its attractive valuation and strengthened profitability. The significant discount implied by its low PEG ratio, coupled with improving operational efficiency and manageable risk profile, provides a favorable risk-reward setup. While investors should be mindful of near-term resistance as the stock approaches its 52-week high and inherent commodity price volatility, the fundamental and valuation case supports a positive outlook for medium to long-term growth. For reference only; not investment advice.

RockFlow Model Forecast: Three Scenarios for 2026

Based on a balanced assessment, EQT's 12-month outlook is positive, supported by its compelling valuation and strong operational improvements. The primary catalysts are the company's significantly improved profitability, as evidenced by robust Q4 earnings growth, and its exceptionally low PEG ratio of 0.06, which suggests substantial undervaluation relative to its growth trajectory. Key risks include near-term technical resistance as the stock approaches its 52-week high and the inherent volatility of natural gas prices, which could impact cash flows. Given the lack of a specific analyst target, a conservative target price range of $65-$75 is reasonable, representing a 12-30% upside from the current price of $57.87, contingent on stable commodity prices and the company's ability to maintain its operational momentum.

Wall Street Consensus

Most Wall Street analysts are optimistic about EQT Corporation's 12-month outlook, with consensus target around $59.77, indicating expected upside potential.

Overall, EQT has investment potential but also faces challenges. Here are key factors to weigh before investing.

EQT has delivered moderate performance with recent strength offsetting medium-term weakness.

The stock has posted strong 14.5% gains over the past month, though it remains down 4.88% over three months while underperforming the market by 5.13%. This recent rally suggests improving momentum despite the stock's relative underperformance versus broader indexes during this period.

Currently trading at $57.87, EQT sits approximately 80% of the way toward its 52-week high of $62.23, indicating it's approaching the upper end of its yearly range. While not yet at overbought levels, the stock's recent surge positions it closer to potential resistance near its yearly peak.

Revenue & Profitability EQT demonstrated sequential revenue stability with modest Q4 growth to $1.84 billion. Profitability improved significantly as net income margin expanded substantially from 18.4% to 40.5% quarter-over-quarter, reflecting stronger operational performance. The company achieved robust EPS growth, with diluted EPS increasing from $0.53 to $1.57.

Financial Health Limited debt ratio data is available, though the interest coverage ratio of 9.6x demonstrates solid debt servicing capability. The absence of current ratio and cash flow metrics prevents a comprehensive liquidity assessment, requiring additional balance sheet information for complete analysis.

Operational Efficiency While specific ROE and asset turnover metrics are unavailable, the company's operating income ratio improved significantly to 55.1% in Q4, indicating enhanced operational effectiveness. The strong EBITDA margin of 93.7% suggests efficient core operations, though full efficiency assessment requires additional working capital and asset utilization metrics.

EQT appears undervalued based on its forward PE ratio of 11.2, which represents a significant discount to its trailing PE of 17.96, suggesting strong earnings growth expectations. The exceptionally low PEG ratio of 0.06 indicates the stock is substantially undervalued relative to its growth prospects, while the reasonable price-to-book ratio of 1.35 supports this undervaluation thesis.

Without industry benchmark data, a comprehensive peer comparison cannot be established. However, the forward PE of 11.2 would typically be considered attractive for a growth company, particularly given the minimal PEG ratio. The absence of EV/EBITDA data limits deeper valuation insights, but the available metrics collectively point to compelling valuation characteristics.

Volatility Risk: EQT exhibits below-market volatility with a Beta of 0.728, indicating its price movements are less pronounced than the broader market. The stock's one-year maximum drawdown of -18.61% indicates a moderate level of downside risk during recent unfavorable periods, reflecting its stability relative to more volatile energy peers.

Other Risks: A negligible short interest suggests very low speculative pressure and a market consensus leaning bullish or neutral on the stock's near-term prospects. However, as a commodity producer, EQT's primary risks remain concentrated in natural gas price volatility and operational execution rather than technical factors like liquidity.