California Resources (CRC): Reassessing Valuation After Recent Share Price Rebound

California Resources (CRC) has quietly outperformed the broader energy space over the past week, and that move is catching investors’ attention as they reassess how this carbon management story is priced.

See our latest analysis for California Resources.

Zooming out, that 1 week share price return of 5.29 percent comes after a tougher stretch, with the 3 month share price return down 11.08 percent and the 1 year total shareholder return negative. As a result, the latest bounce looks more like the early rebuilding of momentum rather than a full trend change.

If CRC has you rethinking opportunities in the energy space, it could be a smart moment to expand your watchlist and explore aerospace and defense stocks for other potential ideas.

With CRC trading below analyst targets yet already boasting strong long term returns, the key question is whether the market is overlooking its carbon management upside or has already incorporated expected future growth into today’s price.

Most Popular Narrative Narrative: 29.3% Undervalued

Compared to the last close of $46.39, the most followed narrative pins California Resources’ fair value materially higher, setting up a very different long term picture.

The company's advanced progress and upcoming operational launch of California's first CCS project, alongside legislative support for CO2 pipelines and clean power procurement, positions CRC to capture meaningful new, high-margin revenue streams from carbon management services, boosting long-term earnings and margins.

Read the complete narrative.

Want to know why a shrinking margin profile still supports a richer future earnings multiple than many oil peers? The narrative leans on disciplined buybacks, steady top line expectations, and a bold rerating thesis built around carbon management economics and policy shifts. Curious how those moving parts combine into that higher fair value?

Result: Fair Value of $65.64 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, lingering permitting uncertainty, as well as potential delays or setbacks in early stage CCS projects, could quickly challenge the market’s confidence in this undervaluation story.

Find out about the key risks to this California Resources narrative.

Build Your Own California Resources Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalized take in just a few minutes: Do it your way.

A great starting point for your California Resources research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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.

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