Range Resources (RRC): Evaluating Valuation Following Recent Double-Digit Share Price Gains

Range Resources (RRC) has delivered double-digit gains over the past month, adding nearly 9% to its stock price. The company’s share performance has outpaced much of the energy sector. This has prompted some investors to take a closer look at its recent growth.

See our latest analysis for Range Resources.

Range Resources' strong 30-day share price return of 8.5% builds on solid momentum, and its one-year total shareholder return of nearly 15% underscores both recent strength and the company’s ability to reward investors over the long haul. The energy sector has seen plenty of volatility lately; however, Range has delivered clear, sustained performance gains.

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The recent rally and consistent returns raise a crucial question for investors: does Range Resources remain undervalued with more room to run, or is the market already factoring in all its potential for future growth?

Most Popular Narrative: 6.6% Undervalued

Range Resources is currently trading close to its fair value estimate, with the most closely followed narrative assigning it a price slightly above the last close of $39.03. This sets up a debate: do recent market gains still leave headroom for further upside?

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, directly expanding margins and delivering stronger free cash flow even in a flatter commodity environment.

Read the complete narrative.

Want to know what’s fueling this potential? The narrative’s fair value is built on aggressive margin expansion, bold efficiency bets, and a major shift in free cash flow. What assumptions does it take for those projections to play out? The answer will surprise you.

Result: Fair Value of $41.79 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent gas market oversupply and tightening environmental regulation could challenge Range Resources' growth outlook and could potentially limit upside in the near term.

Find out about the key risks to this Range Resources narrative.

Build Your Own Range Resources Narrative

If you’re looking for a deeper dive or want to challenge the current outlook, it’s easy to explore the numbers and shape your own perspective in just a few minutes. 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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