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Expand Energy was recently added to several prestigious indices, including the S&P Global 1200, S&P 500 Equal Weighted, and FTSE All-World Index, reflecting its growing prominence. Despite the broader market experiencing notable declines, with key indexes dropping around 12% amid tariff-related volatility, Expand Energy's share price rose 4% over the past month. This performance might have been bolstered by its new index inclusions, potentially reinforcing investor confidence and providing a counterweight to the broader downward market trends driven by trade tensions and economic uncertainties.
We've spotted 2 risks for Expand Energy you should be aware of.
The recent inclusion of Expand Energy (NasdaqGS:EXE) in prestigious indices such as the S&P Global 1200 and FTSE All-World Index could boost investor confidence, potentially impacting the company's long-term narrative by reinforcing its market position. Over the past three years, the company's total shareholder returns, including share price and dividends, were 28.82%. This contrasts with its 4% share price increase over the past month, despite broader market declines driven by tariff-related volatility. Over the last year, EXE outperformed the US market's 3.8% decline and the US Oil and Gas industry's 16.1% decline, highlighting resilience amid industry pressures.
The inclusion news may positively impact revenue and earnings forecasts by attracting additional investment interest and increasing market exposure. Analysts forecast a 31.7% annual revenue growth over the next three years and project a transition to profitability with a US$1.9 billion earnings target by April 2028. Despite the current share price of US$112.74 trading at a 9.2% discount to the analyst price target of US$124.12, the company's potential to capitalize on growing LNG demand and achieve significant synergies by 2026 remains a focus. This suggests optimism for future performance, although growth depends on favorable market conditions and successful execution of its integration and expansion strategies.
Click to explore a detailed breakdown of our findings in Expand Energy's financial health report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.