Range Resources
RRC
$42.00
-0.87%
Range Resources Corp is an independent exploration and production company focused exclusively on natural gas and natural gas liquids (NGLs) from the Marcellus Shale in the Appalachian Basin of southwestern Pennsylvania. As one of the largest natural gas producers in the U.S., Range Resources has established itself as a low-cost, pure-play Marcellus operator with a strong balance sheet and a commitment to shareholder returns. The current investor narrative centers on the company's ability to capitalize on rising natural gas prices, driven by LNG export demand and tightening supply, while maintaining disciplined capital spending and generating robust free cash flow. Recent quarterly results showed a 22.2% year-over-year revenue surge, and the stock has rallied over 20% in the past year, reflecting optimism about the company's growth trajectory and operational efficiency.…
RRC
Range Resources
$42.00
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Investment Opinion: Should I buy RRC Today?
Based on the analysis, RRC is rated a Buy. The thesis is supported by strong revenue growth of 22.2% YoY, a low forward PE of 10.6x, and a PEG ratio of 0.08, indicating undervaluation relative to growth. The average analyst target of $45.64 implies an 8.7% upside, while the high target of $57 suggests a 35.7% potential gain. The company's robust free cash flow of $1.30 billion and net margin of 22.0% further reinforce the positive outlook.
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RRC 12-Month Price Forecast
The AI model assesses RRC as bullish with medium confidence. The company's strong revenue growth, low valuation multiples, and robust cash flow generation support a positive outlook. However, the medium confidence reflects uncertainty in natural gas price forecasts and the stock's proximity to its 52-week high. If gas prices remain firm and RRC continues to execute, the stock could re-rate higher. Conversely, a significant drop in gas prices would undermine the thesis. Monitoring quarterly earnings and gas price trends will be crucial for adjusting the stance.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Range Resources's 12-month outlook, with a consensus price target around $45.64 and implied upside of +8.7% versus the current price.
Average Target
$45.64
0 analysts
Implied Upside
+8.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$37 - $57
Analyst target range
The target price range spans from a low of $37.00 to a high of $57.00, representing a wide spread of $20.00, which suggests significant uncertainty about the future price trajectory. The high target of $57.00 implies a 35.7% upside from the current price, likely assuming continued strength in natural gas prices and successful execution of the company's growth strategy. The low target of $37.00 suggests a potential downside of 11.9%, possibly reflecting concerns about commodity price volatility or operational risks. Recent ratings have been stable, with no major upgrades or downgrades in the past few months, indicating that analysts are maintaining their positions while awaiting further clarity on natural gas market fundamentals. The wide range between the low and high targets highlights the inherent volatility in the energy sector and the sensitivity of Range Resources' valuation to commodity price movements.
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Bulls vs Bears: RRC Investment Factors
Range Resources presents a compelling bull case with strong revenue growth, attractive valuation metrics, and robust profitability. However, the bear case highlights commodity price volatility and potential overextension near 52-week highs. Currently, the bull case has stronger evidence given the low PEG ratio and accelerating revenue, but the key tension lies in natural gas price sustainability. If prices remain firm, RRC could re-rate higher; conversely, a sharp decline in gas prices would pressure earnings and valuation. Investors should monitor gas price trends and the company's ability to maintain cost discipline.
Bullish
- Strong Revenue Growth: Q1 2026 revenue surged 22.2% YoY to $1.034 billion, with sequential growth of 31.4% from Q4 2025's $787 million. This acceleration reflects higher natural gas prices and efficient Marcellus operations.
- Attractive Valuation with Low PEG: Trailing PE of 12.8x and forward PE of 10.6x are modest, while the PEG ratio of 0.08 suggests the stock is undervalued relative to its expected earnings growth. This implies significant upside if growth materializes.
- Strong Profitability Metrics: Net margin of 22.0% and operating margin of 27.9% demonstrate efficient cost management. ROE of 15.2% and ROA of 10.5% indicate effective use of equity and assets to generate profits.
- Robust Free Cash Flow: Free cash flow TTM stands at $1.30 billion, providing ample capacity for debt reduction, share buybacks, and dividends. This supports shareholder returns and financial flexibility.
Bearish
- Commodity Price Sensitivity: RRC's earnings are highly sensitive to natural gas prices. A decline in gas prices could significantly impact revenue and profitability, as seen in historical volatility.
- High Valuation Relative to Peers: Despite low PE, the EV/EBITDA of 7.3x is above the sector median, suggesting the market already prices in strong future performance. Any miss could lead to multiple compression.
- Potential Overextension Near Highs: The stock trades at 87.6% of its 52-week range, near the upper band. This leaves limited upside in the near term and increases the risk of a pullback if momentum fades.
- Low Dividend Yield: The dividend yield of 1.02% is modest, offering limited income appeal. Investors seeking yield might find better opportunities elsewhere in the energy sector.
RRC Technical Analysis
Range Resources is in a clear uptrend, with the stock price at $42.00 as of September 4, 2026, up 20.2% over the past year. The current price sits at 87.6% of the 52-week range (between $32.68 low and $48.31 high), indicating the stock is trading near the upper end of its yearly band, which typically signals strong momentum but also potential overextension. The 52-week high of $48.31 was set earlier in the period, and the stock has since pulled back, but the overall trend remains constructive, supported by a 19.0% year-to-date gain.
Beta
0.43
0.43x market volatility
Max Drawdown
-25.5%
Largest decline past year
52-Week Range
$33-$48
Price range past year
Annual Return
+20.2%
Cumulative gain past year
| Period | RRC Return | S&P 500 |
|---|---|---|
| 1m | +10.1% | -0.4% |
| 3m | +7.4% | +4.5% |
| 6m | +1.2% | +13.9% |
| 1y | +20.2% | +19.0% |
| ytd | +19.0% | +12.9% |
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RRC Fundamental Analysis
Range Resources reported robust revenue of $1.034 billion in Q1 2026 (ending March 31, 2026), representing a 22.2% year-over-year increase from $846 million in Q1 2025. This growth was driven by higher natural gas prices and increased production, with the company's revenue segment showing $1.010 billion from natural gas, NGLs, and oil sales. The multi-quarter trend shows revenue accelerating from $510 million in Q2 2024 to $1.034 billion in Q1 2026, with sequential growth of 31.4% from Q4 2025's $787 million. This strong top-line expansion underscores the company's ability to benefit from favorable commodity price dynamics and its efficient Marcellus operations.
Quarterly Revenue
$1.0B
2026-03
Revenue YoY Growth
+22.2%
YoY Comparison
Gross Margin
63.0%
Latest Quarter
Free Cash Flow
$1.3B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is RRC Overvalued?
Given that Range Resources is profitable with a trailing twelve-month net income of $341.6 million, the price-to-earnings (PE) ratio is the most appropriate valuation metric. The trailing PE stands at 12.8x, while the forward PE is 10.6x, indicating that the market expects earnings growth of approximately 20% over the next year. The gap between trailing and forward PE suggests improving profitability, likely driven by continued strength in natural gas prices and operational efficiencies. This is further supported by a PEG ratio of 0.08, which implies that the stock is significantly undervalued relative to its expected earnings growth rate.
PE
12.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 1x~41x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
7.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks include moderate debt levels with a debt-to-equity ratio of 0.32, which is manageable but could become burdensome if cash flows decline. The current ratio of 0.67 indicates potential liquidity concerns, though the energy sector often operates with lower current ratios. Revenue concentration in natural gas makes earnings highly sensitive to commodity price swings; a 10% drop in gas prices could significantly reduce revenue and net income, as evidenced by historical volatility. Additionally, the company's profitability has been inconsistent, with net margins swinging from 5.6% in Q2 2024 to 33.0% in Q1 2026, reflecting commodity price cycles.
FAQ
The primary risk is commodity price volatility, as natural gas prices directly impact revenue and profits. A significant drop in gas prices could reduce earnings and cash flow. Financial risks include moderate debt levels (D/E of 0.32) and a low current ratio of 0.67, which could strain liquidity in a downturn. Market risks include potential valuation compression if the stock's premium to peers narrows. Company-specific risks include operational issues in the Marcellus or regulatory changes affecting fracking. The most severe risk is a prolonged bear market in gas prices, which could push the stock down to its 52-week low of $32.68, a 22% decline from current levels.
The 12-month forecast for RRC is moderately bullish. The base case, with a 50% probability, sees the stock trading between $42 and $48, aligning with the average analyst target of $45.64. The bull case, with a 30% probability, targets $48-$57, driven by strong gas prices and operational outperformance. The bear case, with a 20% probability, could see the stock fall to $33-$37 if gas prices weaken. The most likely scenario is the base case, assuming stable gas prices and continued execution. Investors should monitor gas price trends and quarterly results for signs of deviation.
Based on valuation metrics, RRC appears undervalued. The trailing PE of 12.8x and forward PE of 10.6x are below the S&P 500 average, and the PEG ratio of 0.08 is extremely low, indicating the stock is cheap relative to its expected earnings growth. The EV/EBITDA of 7.3x is slightly above the sector median, but this is justified by the company's strong margins and cash flow. The market seems to be pricing in modest growth, but if natural gas prices remain strong, the stock could re-rate higher. Overall, RRC offers good value for long-term investors.
RRC is a good buy for investors with a bullish view on natural gas prices. The stock trades at a forward PE of 10.6x, with a PEG of 0.08, suggesting undervaluation relative to growth. Analyst targets imply an average upside of 8.7%, with a high target of $57 offering 35.7% potential. However, the stock is near its 52-week high, and a pullback could offer a better entry. The main risk is a decline in gas prices, which would pressure earnings. Overall, it's a solid pick for those seeking energy exposure with growth potential.
RRC is better suited for long-term investment due to its cyclical nature and low beta of 0.43. The company's growth is tied to natural gas demand, which is expected to rise with LNG exports, providing multi-year tailwinds. Short-term trading could be profitable but is risky due to commodity price swings. The stock's low dividend yield of 1.02% offers limited income, but its free cash flow supports buybacks and potential dividend growth. A minimum holding period of 3-5 years is recommended to ride out commodity cycles and benefit from the company's operational efficiencies and growth prospects.
