Shares of Equinor ASA EQNR have gained 12.5% in the past six months, outperforming the oil-energy sector and the Zacks S&P 500 composite’s declines of 5.5% and 0.5%, respectively. The company has a market capitalization of $70.4 billion.

 

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Positive Outlook on Equinor’s Growth Trajectory

The Zacks Consensus Estimate for EQNR’s 2025 revenues is pegged at $106.4 billion, implying a year-over-year improvement of 2.54%.

Equinor’s earnings grew 20.6% in the last five years, better than the industry average of 4.4%.

Long-term earnings growth is expected to be 12.1%, better than the industry average of 10.1%. EQNR has an impressive Growth Score of A. This style score helps analyze the growth prospects of a company.

Average Target Price for EQNR Suggests Upside

Based on short-term price targets offered by six analysts, the Zacks average price target is $25.66 per share. The average suggests a 3.9% upside from the last closing price.

 

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Favorable Return on Capital

Return on equity in the trailing 12 months was 18.44%, better than the industry average of 14.14%. This highlights the company’s efficiency in utilizing shareholders’ funds.

Also, the return on capital (ROC) has been increasing over the last few quarters as the company raised its capital investment over the same time frame, reflecting EQNR’s efficiency in utilizing funds to generate income. ROC in the trailing 12 months was 10.9%, better than the industry average of 9.27%.

 

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EQNR Shares Trade at a Premium

Equinor shares are trading at a premium to the industry. Its price-to-book value of 1.54X is higher than the industry average of 1.35X. Shares of other integrated energy companies like Cenovus Corporation CVX and Exxon Mobil Corporation XOM are trading at a multiple higher than the industry average, while Shell plc SHEL is trading at a discount.

 

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Factors to Consider

Equinor, a leading integrated energy giant, has a presence in more than 30 countries globally. Within Europe, it serves as the second-largest natural gas provider. In the first quarter of 2025, this energy giant completed five exploration wells in the Norwegian Continental Shelf, along with two commercial discoveries. Equinor expects 4% year-over-year growth in oil and gas production for 2025.

EQNR has demonstrated a robust financial performance in the first quarter of 2025, with an adjusted operating income of $8.6 billion and a net income of $2.6 billion. The cash flow from operations after tax was $7.4 billion, supported by higher gas prices in Europe and the United States. Notably, the company maintains a strong liquidity position, with $24.8 billion in cash and equivalents, and a lower net debt-to-capital-employed ratio of 6.9%.