ITN Stock Analysis
- Work on point of purchase 34.10 beaker with handle
- Blinks 50-day line bounce buy signal and downtrend in the handle
- Higher earnings growth amid high natural gas prices and European demand
Industry group ranking
Mug with handle
* No real-time data. All data displayed was captured at 1:12 p.m. EDT on 08/09/2022.
Range Resources (RRC) is IBD stock of the day on Tuesday, as the natural gas producer bounced off its 50-day moving average at the start of the trading day, offering investors a potential early entry.
U.S. natural gas futures rose nearly 2% on Tuesday, though that was off intraday highs. Prices have retreated somewhat since late July, when they briefly hit a 14-year high of $9.70 per MMBtu (million British thermal units). However, strong demand in Europe continued to support US natural gas prices and inventories.
Range Resources, based in Fort Worth, Texas, is one of the largest natural gas producers in the United States. It operates primarily in Pennsylvania with projects in the Marcellus, Utica and Upper Devonian shale formations. Marcellus Shale is the country’s largest natural gas deposit. Recent federal assessments of total reserves estimate it to contain 609 to 998 trillion cubic feet of natural gas. This makes the Marcellus Shale just a little smaller than the world’s largest gas field located in Qatar and Iran.
“We believe natural gas from Appalachia is critical to meeting growing global demand so the United States can sustainably produce enough natural gas at affordable prices,” CEO Jeff Ventura said during the meeting. call for second quarter results at the end of July.
Range Resources Earnings
In the second quarter, RRC beat Wall Street forecasts, reporting earnings per share up 429% to $1.29. Revenue also rose 131% to $1.06 billion.
While many oil and gas companies have reported increased profits in 2022, inflation and supply chain constraints have driven capital expenditures higher.
Range Resources’ capital expenditures in the second quarter were $127 million, about 27% of the 2022 budget. Total capital expenditures in 2022 were $244 million. The company expects capital spending to decline in the second half of 2022 and maintains its full-year capital spending guidance of $460 million to $480 million.
“Our focus has been and remains maintenance capital,” Ventura told investors. “If and when we grow, it will most likely be in the single digits.”
RRC stock analysis
Range Resources stock rose 6.9% to 32.19 in Tuesday’s trading session. This offers an aggressive entry as the stock moves higher from the 50-day average and breaks a downtrend within the handle. According to analysis by MarketSmith, the stock is currently in a cut-and-handle pattern with an official buy point of 34.10.
RRC stock was added to SwingTrader on Tuesday.
In early March, Range Resources stock moved above a buy point of 26.58 from an 18-week cut base dating back to late October. The stock hit 34.61 on April 18, well above its 50-day moving average, but then started to pull back. The RRC fell below its 50-day line on May 9.
RRC ranks seventh among oil and natural gas stocks in the exploration and production industry group in the United States. The stock has a strong composite rating of 98. It has a relative strength rating of 97, an exclusive IBD Stock Checkup gauge for stock price movement with a score of 1 to 99. The rating shows how performance of a stock over the past 52 weeks outperforms all other stocks in the IBD database. His EPS index is 81.
Please follow Kit Norton on Twitter @KitNorton for more coverage.
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