Why Range Resources Is Poised to Underperform

Brian D. Pacampara, The Motley Fool
Updated

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 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 Resourcesfacts

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
ExxonMobil


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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The article Why Range Resources Is Poised to Underperform originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Range Resources, owns shares of ExxonMobil, and has options on Chesapeake Energy. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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