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Has Cheniere Energy (LNG) Outpaced Other Oils-Energy Stocks This Year?

Zacks Equity Research
·2-min read

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Cheniere Energy (LNG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Oils-Energy sector should help us answer this question.

Cheniere Energy is a member of our Oils-Energy group, which includes 256 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Cheniere Energy is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LNG's full-year earnings has moved 76.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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According to our latest data, LNG has moved about 33.6% on a year-to-date basis. In comparison, Oils-Energy companies have returned an average of 28%. This means that Cheniere Energy is outperforming the sector as a whole this year.

Another stock in the Oils-Energy sector, EnLink Midstream (ENLC), has outperformed the sector so far this year. The stock's year-to-date return is 47.9%.

In EnLink Midstream's case, the consensus EPS estimate for the current year increased 205.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Cheniere Energy is a member of the Oil and Gas - Exploration and Production - United States industry, which includes 41 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, stocks in this group have gained 42.4% this year, meaning that LNG is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, EnLink Midstream belongs to the Oil and Gas - Refining and Marketing industry. This 14-stock industry is currently ranked #30. The industry has moved +6.2% year to date.

Investors with an interest in Oils-Energy stocks should continue to track Cheniere Energy and EnLink Midstream. These stocks will be looking to continue their solid performance.


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