Cheniere Energy (LNG) Outpaces Stock Market Gains: What You Should Know
Cheniere Energy (LNG) closed at $156.89 in the latest trading session, marking a +0.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.57%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.33%.
Heading into today, shares of the natural gas company had lost 3.3% over the past month, lagging the Oils-Energy sector's loss of 2.71% and the S&P 500's gain of 1.72% in that time.
Wall Street will be looking for positivity from Cheniere Energy as it approaches its next earnings report date. In that report, analysts expect Cheniere Energy to post earnings of $5.38 per share. This would mark a year-over-year decline of 26.8%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, down 12.88% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for Cheniere Energy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 5.95% higher. Cheniere Energy is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Cheniere Energy is holding a Forward P/E ratio of 9.59. This valuation marks a premium compared to its industry's average Forward P/E of 6.27.
Investors should also note that LNG has a PEG ratio of 0.9 right now. 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. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.33 at yesterday's closing price.
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 231, putting it in the bottom 9% 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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