EQT Shares Could Be 22 Percent Undervalued Amid Strong Demand

EQT Corporation (EQT) shares are gaining attention following a recent rally, with analysts suggesting the stock could be 22% undervalued. The company’s shares, trading at $52.47, have surged 7.34% over the past week, though the one-month return stands at 4.89% and the year-to-date return is down 1.85%. Despite short-term fluctuations, long-term investors have seen substantial gains, with a 5-year total shareholder return of 184.14%.

The optimism surrounding EQT is driven by several factors, including natural gas prices around $3.11 per MMBtu on October 6, 2026, cooler US weather forecasts, and higher LNG export demand. The company has also secured a 10-year supply deal, which is expected to boost revenue and free cash flow from both upstream and midstream operations. The ramp-up of large-scale, long-term natural gas supply contracts to new AI data centers and power generation facilities in Appalachia, starting in 2027 and 2028, is seen as a key growth driver.

Analysts point to a fair value of $67.50 for EQT, significantly higher than its current trading price. This valuation is supported by long-term contract visibility, midstream volumes, and the durability of free cash flow. However, risks such as accelerated decarbonization policies or increased regulatory scrutiny could impact this positive outlook.

For investors considering EQT, the current rally only partially closes the gap to various value markers, leaving potential upside on the table. The article also encourages reviewing other high-quality undervalued stocks in the energy sector that may benefit from similar tailwinds.