Cheniere Energy (LNG) Outpaces Stock Market Gains: What You Should Know

·3-min read

Cheniere Energy (LNG) closed at $146.88 in the latest trading session, marking a +1.94% move from the prior day. This move outpaced the S&P 500's daily gain of 1.76%. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 3.03%.

Prior to today's trading, shares of the natural gas company had lost 4.6% over the past month. This has was narrower than the Oils-Energy sector's loss of 12.2% and the S&P 500's loss of 5.94% in that time.

Investors will be hoping for strength from Cheniere Energy as it approaches its next earnings release. 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%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, down 12.88% from the year-ago period.

LNG's full-year Zacks Consensus Estimates are calling for earnings of $16.22 per share and revenue of $23.11 billion. These results would represent year-over-year changes of +187.59% and -30.86%, respectively.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 8.69% higher within the past month. Cheniere Energy is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cheniere Energy has a Forward P/E ratio of 8.88 right now. Its industry sports an average Forward P/E of 5.24, so we one might conclude that Cheniere Energy is trading at a premium comparatively.

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 225, putting it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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

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