Advertisement
U.S. markets close in 4 hours 5 minutes
  • S&P 500

    5,254.84
    +6.35 (+0.12%)
     
  • Dow 30

    39,780.06
    +19.98 (+0.05%)
     
  • Nasdaq

    16,405.58
    +6.06 (+0.04%)
     
  • Russell 2000

    2,131.58
    +17.23 (+0.81%)
     
  • Crude Oil

    82.67
    +1.32 (+1.62%)
     
  • Gold

    2,234.70
    +22.00 (+0.99%)
     
  • Silver

    24.92
    +0.17 (+0.70%)
     
  • EUR/USD

    1.0801
    -0.0028 (-0.26%)
     
  • 10-Yr Bond

    4.1850
    -0.0110 (-0.26%)
     
  • GBP/USD

    1.2626
    -0.0012 (-0.09%)
     
  • USD/JPY

    151.2980
    +0.0520 (+0.03%)
     
  • Bitcoin USD

    71,441.83
    +2,474.26 (+3.59%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,963.36
    +31.38 (+0.40%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

EQT Corporation (NYSE:EQT): Is It A Good Long Term Opportunity?

In September 2017, EQT Corporation (NYSE:EQT) released its most recent earnings announcement, which confirmed difficult times for the company, with earnings reversing into losses due to recent headwinds. Below is my commentary, albeit very simple and high-level, on how market analysts predict EQT’s earnings growth outlook over the next couple of years and whether the future looks brighter. I will be looking at earnings excluding extraordinary items to exclude one-off activities to get a better understanding of the underlying drivers of earnings. See our latest analysis for EQT

Market analysts’ consensus outlook for next year seems optimistic, with earnings transitioning from negative to positive. Moreover, earnings are expected to continue its upward trend, reaching $842.7M in 2019, before plateauing to similar levels in 2020.

NYSE:EQT Future Profit Dec 26th 17
NYSE:EQT Future Profit Dec 26th 17

Although it’s helpful to be aware of the growth each year relative to today’s figure, it may be more insightful to gauge the rate at which the company is rising or falling every year, on average. The benefit of this method is that we can get a bigger picture of the direction of EQT’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To compute this rate, I’ve inserted a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 41.46%. This means, we can expect EQT will grow its earnings by 41.46% every year for the next few years.

Next Steps:

For EQT, I’ve put together three relevant factors you should further examine:

1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

2. Valuation: What is EQT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EQT is currently mispriced by the market.

3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of EQT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement