Cheniere Energy (LNG) Gains But Lags Market: What You Should Know
Cheniere Energy (LNG) closed the most recent trading day at $147.36, moving +0.48% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.
Coming into today, shares of the natural gas company had lost 9.37% in the past month. In that same time, the Oils-Energy sector lost 8%, while the S&P 500 lost 1.48%.
Wall Street will be looking for positivity from Cheniere Energy as it approaches its next earnings report date. On that day, Cheniere Energy is projected to report earnings of $5.38 per share, which would represent a year-over-year decline of 26.8%. Meanwhile, our latest consensus estimate is calling for revenue of $6.52 billion, down 12.88% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.22 per share and revenue of $23.11 billion. These totals would mark changes of +187.59% and -30.86%, respectively, from last year.
Any recent changes to analyst estimates for Cheniere Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.69% higher within the past month. Cheniere Energy currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Cheniere Energy is holding a Forward P/E ratio of 9.04. Its industry sports an average Forward P/E of 5.23, so we one might conclude that Cheniere Energy is trading at a premium comparatively.
It is also worth noting that LNG currently has a PEG ratio of 0.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.29 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
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