Why EQT Stock Crushed the Market on Monday

Natural gas producer EQT (NYSE: EQT) produced plenty of gains on the stock market as the trading week kicked off. The company didn't have any significant news of its own to report, rather a pair of modest analyst price raises combined to give some lift to the shares. As a result the stock closed the day more than 3% higher, a markedly better performance than the S&P 500 index's 0.3% decline.

Firing up a pair of price target hikes

Those prognosticator bumps, though newsworthy, were hardly coincidental. They came mere days after EQT reported its third-quarter earnings, in which it convincingly beat the consensus analyst estimate for profitability (although it slightly missed on the top line).

The two pundits boosting their fair value assessments for EQT's stock were Josh Silverstein of UBS, and Piper Sandler's Mark Lear. While both held on to their neutral recommendations, the pair added $2 per share to their EQT price targets for new levels of $42 and $34, respectively.

Both analysts have similar sentiments on EQT's prospects. According to sources, in his new take on the company Lear pointed out that the company raised its guidance for volume this current (fourth) quarter on the back of increased capital expenditures. Those expenditures are expected to ease throughout 2025 thanks to cost-saving measures and other factors.

Dimming demand?

Investors are more bullish about EQT's future than the two analysts, although some caution is in order here. Ultimately, like with other natural resource companies, ETQ's fate depends on the demand for its product. The government's U.S. Energy Information Administration is forecasting a drop in domestic natural gas consumption next year, so buyer beware.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,292!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,169!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $407,758!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 4, 2024

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EQT. The Motley Fool has a disclosure policy.