EQT (EQT) shares have moved higher this week, up 4% in a day and gaining 11% over the past month. The stock’s momentum is turning heads, particularly given its recent track record.

EQT’s share price has displayed real momentum lately, but this builds on a much bigger story. The company has delivered a 17% year-to-date share price return and an impressive 53% total shareholder return over the past year, pointing to both short-term strength and sustained long-term gains.

If EQT’s run has you curious about where else investors are finding opportunity, now's the perfect time to broaden your search and discover fast growing stocks with high insider ownership

With the share price trading below analyst targets and strong shareholder returns in recent years, is EQT being undervalued in the market? Or is the current stock price already reflecting all future growth potential?

Most Popular Narrative: 12% Undervalued

With EQT's fair value pegged at $62.80 by the most popular narrative, the current share price of $55.44 suggests there is still meaningful upside implied by market expectations. This valuation draws from a detailed view of EQT's evolving cash flow profile and future operational catalysts.

"The ramp-up of large-scale, long-term (20-year) natural gas supply contracts to new AI data centers and power generation facilities in Appalachia, beginning in 2027, positions EQT to capture outsized in-basin demand growth from electrification and digital infrastructure. This creates predictable, high-quality revenue and substantially increases upstream and midstream free cash flow."

Want to know the growth blueprint behind this ambitious valuation? The core of this narrative is record-shattering profit margin expansion and significant earnings growth, with a multiple rarely seen outside tech’s elite. Which financial leaps and bold milestones make analysts believe this price target is within reach? Discover the hidden details and the numbers that could dramatically reshape EQT’s future.

Result: Fair Value of $62.80 (UNDERVALUED)

However, persistent industry oversupply and accelerating energy transition trends could quickly dampen EQT’s bullish outlook if market fundamentals shift unexpectedly.

Another View: Trading at a Premium on Earnings

Looking at valuation through the lens of market multiples tells a more cautious story. EQT’s price-to-earnings ratio stands at 30.2x, which is more than double the US Oil and Gas industry average of 13.1x. Even compared to its peers’ average of 36.9x, EQT’s price looks punchy. The fair ratio, based on our market regression, lands at 21.8x. This suggests that if sentiment shifts or growth slows, there is a risk that EQT’s valuation could contract toward this level. Does the market see something others are missing, or is this optimism running ahead of fundamentals?

Build Your Own EQT Narrative

If these perspectives spark questions or new ideas, dive in to the data yourself and craft your own view. Building a personal EQT narrative takes less than three minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding EQT.

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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.