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Cheniere Energy (LNG) Gains But Lags Market: What You Should Know

Cheniere Energy (LNG) closed the most recent trading day at $151.61, moving +0.8% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.96%. At the same time, the Dow added 1.57%, and the tech-heavy Nasdaq lost 3.03%.

Prior to today's trading, shares of the natural gas company had lost 3.27% over the past month. This has lagged the Oils-Energy sector's gain of 6.43% and the S&P 500's gain of 2.19% in that time.

Cheniere Energy will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2023. In that report, analysts expect Cheniere Energy to post earnings of $5.77 per share. This would mark a year-over-year decline of 21.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.58 billion, down 12.13% from the year-ago period.

LNG's full-year Zacks Consensus Estimates are calling for earnings of $16.23 per share and revenue of $22.89 billion. These results would represent year-over-year changes of +187.77% and -31.53%, respectively.

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It is also important to note the recent changes to analyst estimates for Cheniere Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection has moved 0.04% higher. Cheniere Energy is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Cheniere Energy is holding a Forward P/E ratio of 9.27. Its industry sports an average Forward P/E of 6.49, so we one might conclude that Cheniere Energy is trading at a premium comparatively.

We can also see that LNG currently has a PEG ratio of 0.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.34 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 214, putting it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report

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