Matador Resources Company (MTDR) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Matador Resources (MTDR). Shares have been marching higher, with the stock up 19.8% over the past month. The stock hit a new 52-week high of $66.84 in the previous session. Matador has gained 52.8% since the start of the year compared to the 33.3% gain for the Zacks Oils-Energy sector and the 43% return for the Zacks Oil and Gas - Exploration and Production - United States industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 24, 2026, Matador reported EPS of $0.87 versus consensus estimate of $0.71 while it beat the consensus revenue estimate by 4.4%.

For the current fiscal year, Matador is expected to post earnings of $6.68 per share on $3.78 in revenues. This represents a 265.03% change in EPS on a 2.33% change in revenues. For the next fiscal year, the company is expected to earn $7.63 per share on $4.08 in revenues. This represents a year-over-year change of 14.18% and 7.78%, respectively.

Valuation Metrics

Though Matador has recently hit a 52-week high, what is next for Matador? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Matador has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13.3X. On a trailing cash flow basis, the stock currently trades at 5.6X versus its peer group's average of 5.6X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Matador an interesting choice for value investors.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Matador currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Matador fits the bill. Thus, it seems as though Matador shares could still be poised for more gains ahead.

How Does MTDR Stack Up to the Competition?

Shares of MTDR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Permian Resources Corporation (PR). PR has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.

Earnings were strong last quarter. Permian Resources Corporation beat our consensus estimate by 32.14%, and for the current fiscal year, PR is expected to post earnings of $1.67 per share on revenue of $5.63 billion.

Shares of Permian Resources Corporation have gained 14.4% over the past month, and currently trade at a forward P/E of 12.89X and a P/CF of 5.53X.

The Oil and Gas - Exploration and Production - United States industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MTDR and PR, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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