Why Shares of Range Resources Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Range Resources (NYSE: RRC  ) jumped as much as 12% today after reporting earnings.

So what: Management said that second-quarter revenue jumped 50% to $673.4 million, and that it earned $0.34 per share. Expectations were for just $420 million in revenue and profit of $0.32 per share, so the results were far better than expected.

Now what: One great sign is that cash flow is expected to outpace growth, which is anticipated to be 20%-25% for years to come. That will help the company pay off $2.9 billion in debt or use the cash for further expansion. The stock still trades at 38 times forward estimates but, considering the company's growth and the recent increases in oil prices, that may be a steal as the company grows.

Interested in more info on Range Resources? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2559288, ~/Articles/ArticleHandler.aspx, 8/28/2016 6:49:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,395.40 -53.01 -0.29%
S&P 500 2,169.04 -3.43 -0.16%
NASD 5,218.92 6.71 0.13%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/26/2016 4:02 PM
RRC $39.65 Down -0.47 -1.17%
Range Resources CAPS Rating: ***