5 Best Buy-the-Dip Stocks To Buy Now

3. EQT Corporation (NYSE:EQT)

Number of Hedge Fund Holders: 57

EQT Corporation (NYSE:EQT) is a Pennsylvania-based natural gas exploration and production (E&P) company with a best-in-class presence in the Appalachian Basin. The company is the biggest natural gas producer in the US.

Sam Margolin at Wolfe Research upgraded EQT Corporation (NYSE:EQT) stock from a Peer Perform to an Outperform rating with a target price of $59 on December 14. The target price reflects a potential upside of over 55% from the closing price as of December 27. The analyst sees an attractive entry point in the stock that is driven by fear due to the risk associated with natural gas prices. The industry is currently focused on giving priority to generating a capital return through a disciplined allocation of capital expenditure. However, higher service cost is expected to result in increased capital expenditure for companies in Q4 2022 and 2023.

Here’s what ClearBridge Investments said about EQT Corporation (NYSE:EQT) in its Q3 2022 investor letter:

“We also added natural gas company EQT (NYSE:EQT) in the energy sector. As one of the lowest-cost domestic producers, EQT stands to benefit from its position as a leading supplier of natural gas to a world suffering from critically low energy reserves. The Russian invasion of Ukraine and threats to hold natural gas exports hostage have spurred a surge in European energy prices, generating long-term agreements by European countries to purchase U.S. natural gas.

This strong demand and elevated prices have helped EQT strengthen its balance sheet and position it to take advantage as opportunities emerge for natural gas to plug the gaps in the global energy transition from fossil fuels to renewables.”