CNX Resources (CNX) has drawn investor attention after a recent pullback, with the stock down about 8% over the past month and roughly 19% over the past 3 months.

That recent pullback sits within a mixed picture, with the share price down about 9% year to date and roughly 19% over 3 months, while the 1 year total shareholder return is 3.6% and the 3 and 5 year total shareholder returns are very strong. This suggests long term holders have still seen substantial gains even as shorter term momentum has cooled.

If CNX’s recent moves have you thinking about where else value or momentum could be building, this is a good moment to scan 34 power grid technology and infrastructure stocks

So with CNX Resources pulling back even as multi year returns remain strong and analysts setting an average price target above the current US$33.20, is the stock now undervalued, or is the market already pricing in future growth?

Most Popular Narrative: 11.4% Undervalued

Against the last close at $33.20, the most widely followed narrative points to a higher fair value of $37.46, framing the recent pullback as a potential valuation gap to analyze.

Favorable policy and regulatory shifts towards cleaner-burning natural gas including programs like 45Z tax credits and renewable energy attribute markets are creating new, high-margin revenue streams (e.g., RMG sales, environmental credits), potentially enhancing both net margins and free cash flow.

Want to see what is really driving that higher fair value? The narrative leans on specific revenue growth, margin shifts, and a future earnings multiple that might surprise you.

Under this narrative, CNX Resources is valued using a 6.98% discount rate applied to analyst forecasts for revenue, earnings, and cash flows, alongside expectations for slightly lower profit margins and a modestly higher future P/E multiple than today. Those inputs combine to a fair value estimate of $37.46, compared with the closing price of $33.20. This is why the narrative presents CNX Resources as undervalued based on its projected earnings power and cash generation rather than recent share price weakness.

Result: Fair Value of $37.46 (UNDERVALUED)

However, this hinges on factors that could break the thesis, including weaker than expected in basin gas demand or tighter rules around tax credits and environmental revenues.

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Next Steps

With sentiment split between recent share price weakness and longer term gains, this is a good time to move fast, review the underlying data, and weigh both sides of the story using the 3 key rewards and 2 important warning signs.

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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.