NYSE:EQT: a strong growth stock preparing for the next leg up?.

Last update: Oct 5, 2023

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether EQT CORP (NYSE:EQT) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but EQT CORP has surfaced on our radar for growth with base formation, warranting further examination.

Looking at the Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:EQT has earned a 8 for growth:

The Earnings Per Share has grown by an impressive 37.79% over the past year.
Measured over the past years, EQT shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.74% on average per year.
Looking at the last year, EQT shows a very strong growth in Revenue. The Revenue has grown by 113.48%.
EQT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.39% yearly.
EQT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.02% yearly.
Based on estimates for the next years, EQT will show a quite strong growth in Revenue. The Revenue will grow by 11.36% on average per year.
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Health Examination for NYSE:EQT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:EQT has achieved a 6 out of 10:

With a decent Altman-Z score value of 2.42, EQT is doing good in the industry, outperforming 60.65% of the companies in the same industry.
EQT has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.79, EQT is in the better half of the industry, outperforming 72.69% of the companies in the same industry.
EQT has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.

Profitability Examination for NYSE:EQT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:EQT was assigned a score of 6 for profitability:

Looking at the Return On Assets, with a value of 16.68%, EQT is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
The Return On Equity of EQT (29.55%) is better than 65.28% of its industry peers.
With a decent Return On Invested Capital value of 19.88%, EQT is doing good in the industry, outperforming 74.07% of the companies in the same industry.
EQT's Profit Margin of 38.44% is fine compared to the rest of the industry. EQT outperforms 74.07% of its industry peers.
With an excellent Operating Margin value of 53.91%, EQT belongs to the best of the industry, outperforming 84.26% of the companies in the same industry.
In the last couple of years the Operating Margin of EQT has grown nicely.
Looking at the Gross Margin, with a value of 74.54%, EQT is in the better half of the industry, outperforming 76.39% of the companies in the same industry.
EQT's Gross Margin has improved in the last couple of years.

How do we evaluate the setup for NYSE:EQT?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:EQT scores a 8 out of 10:

Although the technical rating is bad, EQT does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 39.41, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for EQT in the last couple of days, which is a good sign.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of EQT

Our latest full technical report of EQT contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.