A Rough Week For Range Resources (RRC)

Range Resources (RRC) fell another 5.3% today after dropping almost 5.5% last week. Investors have been selling off shares of the natural gas company. Even though shares have dropped recently, the stock is still not cheap at all.

Shares still look way too expensive trading at 56 times this year's earnings and 30 times next year's earnings. The average P/E for most stocks in the sector is between 11 and 12. This is a very steep valuation for a stock whose earnings are only expected to grow at a 12.8% clip.

Range Resources has a poor balance sheet with under $300 million in cash and almost $1.75 billion dollars in debt. Natural gas may be a good investment but investors can find a cheaper way to get exposure to the sector.