In the latest trading session, Cheniere Energy (LNG) closed at $162.01, marking a -1.3% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.47%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.
Heading into today, shares of the natural gas company had gained 0.98% over the past month, lagging the Oils-Energy sector's gain of 4.06% and outpacing the S&P 500's loss of 1.43% in that time.
Investors will be hoping for strength from Cheniere Energy as it approaches its next earnings release. In that report, analysts expect Cheniere Energy to post earnings of $2.50 per share. This would mark a year-over-year decline of 67.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.85 billion, down 56.55% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $33.55 per share and revenue of $19.61 billion, which would represent changes of +494.86% and -41.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cheniere Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.83% lower. Cheniere Energy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Cheniere Energy currently has a Forward P/E ratio of 4.89. Its industry sports an average Forward P/E of 9.55, so we one might conclude that Cheniere Energy is trading at a discount comparatively.
Meanwhile, LNG's PEG ratio is currently 0.17. 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 0.48 based on yesterday's closing prices.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.
To follow LNG in the coming trading sessions, be sure to utilize Zacks.com.
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