Why Range Resources Is Poised to Underperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas and oil company Range Resources (NYSE: RRC  ) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Range Resources and see what CAPS investors are saying about the stock right now.

Range Resources facts

Headquarters (Founded)

Fort Worth, Texas (1975)

Market Cap

$10.3 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$1.3 billion

Management

CEO Jeffrey Ventura (since 2012)
CFO Roger Manny (since 2003)

Return on Equity (Average, Past 3 Years)

1%

Cash/Debt

$151.0 thousand / $2.9 billion

Dividend Yield

0.2%

Competitors

Chesapeake Energy (NYSE: CHK  )
ExxonMobil
(NYSE: XOM  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 8% of the 593 members who have rated Range Resources believe the stock will underperform the S&P 500 going forward.

A few weeks ago, one of those Fools, Clint35, succinctly summed up the Range Resources bear case for our community:

Terrible balance sheet. Tiny dividend that's barely covered by cash flow. Tiny margins and negative [profit margins]. PEG ratio over 9.

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its five-star rating, Range Resources may not be your top choice.

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