Golar LNG Limited GLNG is benefiting from an improved FLNG (Floating Liquefied Natural Gas) performance.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Golar LNG an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Golar LNG have gained 118.8% so far this year, outperforming the 15.9% growth of the industry it belongs to.
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Solid Zacks Rank: Golar LNG has a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer regarding the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Golar LNG’s 2022 earnings has moved up 15.1% year over year to 99 cents. For full-year 2023, earnings estimates have increased 53.7% year over year.
Positive Earnings Surprise History: Golar LNG has an impressive earnings surprise history. The company delivered an earnings surprise of 74.34% in the last four quarters, on average.
Growth Factors: Golar LNG is benefiting from an improved FLNG performance. The FLNG unit continues to perform well, aiding the company’s top line. Demand for LNG vessels is likely to get stronger owing to the Russia-Ukraine war, as the European countries look for gas supplies outside Russia. Improved shipping performance is aiding the company. The company anticipates a substantial improvement in cash generation in the next two years owing to strength in the LNG shipping market, increased utilization of Hilli, higher oil and gas price environment and the commencement of the Gimi contract in 2023. The company expects a significant increase in adjusted EBITDA generation over the next two-three years, driven by its FLNG and shipping units.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks Transportation sector that investors can consider are GATX Corporation GATX, Triton International Limited TRTN and Teekay Tankers Ltd. TNK, each carrying a Zacks Rank #2 (Buy).
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days. Shares of GATX have gained 7.9% over the past year.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. TRTN has a long-term expected growth rate of 10%.
The Zacks Consensus Estimate for TRTN’s current-year earnings has improved 4.2% over the past 90 days. Shares of TRTN have increased 20.9% over the past year.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. TNK has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 120.3% over the past year.
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