Range Resources’ stock price is in downtrend
Declining crude oil and natural gas prices over the last one year are dragging the entire upstream sector into a downtrend. As seen in the below chart, Range Resources’ (RRC) stock price is in a downtrend where it is making a clear pattern of lower highs and lower lows.
RRC’s stock price performance before 4Q15 earnings
Recently, RRC has shown a good relative strength when compared with other natural gas producers. In the last three months, RRC’s stock price has fallen by ~20%. In comparison, the ETF ISE-Reverse Nat Gas Index Fund (FCG) was down ~43% during the same period.
But in 2015, RRC underperformed bigger upstream companies from the S&P 500 (SPY). In 2015, RRC lost ~55%, whereas bigger oil and gas producers Occidental Petroleum (OXY), Pioneer Natural Resources (PXD), and EOG Resources (EOG) are down ~13%, ~16%, and ~23%, respectively.
RRC’s stock price performance after past earnings
RRC reported its 3Q15 earnings after the market close on October 28, 2015. In 3Q15, excluding the one-time items, RRC reported a profit of $0.03 per share, $0.08 better than the consensus for a loss of $0.05 per share. Following the earnings release, better-than-expected earnings helped RRC’s stock price increase by ~23% in six sessions.
Similar positive movement happened after 1Q15 and 4Q14 earnings when RRC’s stock price increased by ~4% and ~5% after beating the consensus earnings estimates by $0.03 per share and $0.11 per share, respectively.