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Cheniere Energy (LNG) Gains But Lags Market: What You Should Know

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In the latest trading session, Cheniere Energy (LNG) closed at $124.17, marking a +0.23% move from the previous day. This change lagged the S&P 500's 1.92% gain on the day. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.16%.

Coming into today, shares of the natural gas company had lost 0.22% in the past month. In that same time, the Oils-Energy sector lost 15.44%, while the S&P 500 gained 1.54%.

Investors will be hoping for strength from Cheniere Energy as it approaches its next earnings release, which is expected to be August 4, 2022. The company is expected to report EPS of $2.99, up 453.7% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.85 billion, up 127.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $15.49 per share and revenue of $28.75 billion. These totals would mark changes of +267.46% and +81.25%, respectively, from last year.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cheniere Energy currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Cheniere Energy's current valuation metrics, including its Forward P/E ratio of 8. This valuation marks a premium compared to its industry's average Forward P/E of 3.92.

It is also worth noting that LNG currently has a PEG ratio of 0.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.19 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 16, putting it in the top 7% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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