Range Resources (RRC) has seen its stock gain ground over the past month, climbing about 3%. Investors are watching the company’s steady performance and considering how broader market dynamics could shape future results.
Range Resources has quietly built momentum, delivering an 11.7% 90-day share price return and a 9.1% total shareholder return over the past year, as investors respond to improving results and a strong year for energy stocks. While price moves have been steady rather than dramatic, the company’s three-year total shareholder return of 37.4% shows that the longer-term trend is still positive.
With shares still trading at a discount to analyst price targets and solid financial growth on the books, the question now becomes whether Range Resources is truly undervalued, or if the market has already factored in its next phase of growth.
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Most Popular Narrative: 8% Undervalued
The common narrative sets Range Resources' fair value at $41.79, above the last close of $38.46. This suggests there may be room for upside based on future projections.
"Ongoing efficiency gains in drilling and completions and sustained reductions in per-unit well costs are enabling Range to increase production guidance and lower capital spending. This directly expands margins and delivers stronger free cash flow even in a flatter commodity environment."
Curious what happens when analysts run the numbers on revenue growth, profits, and margins? There is a bold plan behind this valuation target. Want a look at the core forecasts and the assumptions informing that fair value? Unlock the full forecast details that could influence this company's outlook.
However, persistent commodity headwinds and oversupply in the gas market could limit near-term cash flow. This may challenge the case for a rebound in valuations.
Taking a step away from forecasts, current price-to-earnings ratios offer a fresh angle. Range Resources trades at 15.9x, which is above the US Oil and Gas industry average of 13.1x. Against its peers, however, it looks cheaper. The peer average stands at a high 47.5x, while the fair ratio sits at 17.9x.
In practical terms, this means the stock is somewhat pricey compared to the industry, but more favorably valued when compared to direct peers or possible future market norms. Could the premium to industry averages turn into risk, or does peer pricing hint at overlooked upside?
Feel free to dig into the data and shape your own investment narrative. Putting together your own take can be done in just a few minutes with Do it your way.
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Range Resources.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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