Is MDU (MDU) Undervalued Following Its Recent Drop in Share Price?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 06 2025
0mins
Source: Yahoo Finance
Recent Stock Performance: MDU Resources Group has experienced a 10% pullback in share price over the past week, despite a 19% increase over the last three months and ongoing earnings growth.
Valuation Insights: The stock is currently trading at $19.26, below the narrative fair value of $20.50, raising questions about whether it is undervalued or if future growth is already priced in.
Growth Potential: MDU is well-positioned to benefit from significant investments in U.S. infrastructure, particularly in pipeline expansions and energy needs, which could lead to substantial revenue and earnings growth.
Investment Risks: The stock trades at a higher price-to-earnings ratio compared to its peers, indicating limited margin for error if growth falters, and potential risks include faster clean energy adoption and persistent cost inflation.
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Analyst Views on MDU
Wall Street analysts forecast MDU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MDU is 21.00 USD with a low forecast of 20.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 20.440
Low
20.00
Averages
21.00
High
22.00
Current: 20.440
Low
20.00
Averages
21.00
High
22.00
About MDU
MDU Resources Group Inc. provides electric and natural gas distribution services across the Pacific Northwest and Midwest. The Company's segments include electric, natural gas distribution and pipeline. Its electric segment provides electric service at retail, serving residential, commercial, industrial and municipal customers in approximately 185 communities and adjacent rural areas. It has interests in approximately 14 electric generating units at 11 facilities and two small portable diesel generators. Its natural gas distribution segment sells natural gas at retail, serving residential, commercial and industrial customers in approximately 339 communities and adjacent rural areas across eight states. Its pipeline segment operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring energy delivery across the Northern Plains. Its underground storage fields provide natural gas storage services to local distribution companies, industrial customers and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MDU Resources Group to Host Year-End 2025 Earnings Call on February 5
- Earnings Call Schedule: MDU Resources Group will host its year-end 2025 earnings conference call on February 5, 2026, at 2 p.m. ET, with results released before U.S. markets open, aimed at providing investors with insights into the company's financial health and future outlook.
- Webcast Access: Investors can access the webcast through the 'Investors' section of MDU's website, selecting 'Events & Presentations' and clicking on 'Year-End 2025 Earnings Conference Call' to stay updated on the company's latest developments.
- Company Overview: As a member of the S&P SmallCap 600 index, MDU Resources Group is committed to delivering safe, reliable, cost-effective, and environmentally responsible electric utility and natural gas distribution services to over 1.2 million customers, showcasing its stability and accountability in the energy sector.
- Pipeline Business Scale: MDU operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains, reflecting the company's robust infrastructure and significant market influence in energy distribution.
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MDU Resources Group to Host Year-End 2025 Earnings Call on February 5
- Earnings Call Schedule: MDU Resources Group will host its year-end 2025 earnings conference call on February 5, 2026, at 2 p.m. ET, with results released before U.S. markets open, ensuring timely information for investors.
- Webcast Access: Investors can access the webcast through the 'Investors' section of MDU's website, selecting 'Events & Presentations' and clicking on 'Year-End 2025 Earnings Conference Call', facilitating real-time participation and subsequent replay.
- Company Background: MDU Resources Group, a member of the S&P SmallCap 600 index, is committed to delivering safe, reliable, cost-effective, and environmentally responsible electric utility and natural gas distribution services to over 1.2 million customers, showcasing its stability and responsibility in the energy sector.
- Pipeline Business Scale: MDU's pipeline operations feature a network of over 3,800 miles of natural gas pipelines and storage systems, ensuring reliable energy delivery across the Northern Plains, reflecting the company's robust infrastructure capabilities and long-term commitment to energy reliability.
Continue Reading