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

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Cheniere Energy (LNG) closed the most recent trading day at $125.98, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.2%.

Coming into today, shares of the natural gas company had lost 4.81% in the past month. In that same time, the Oils-Energy sector lost 4.86%, while the S&P 500 lost 8.32%.

Cheniere Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cheniere Energy to post earnings of $2.99 per share. This would mark year-over-year growth of 453.7%. Meanwhile, our latest consensus estimate is calling for revenue of $6.85 billion, up 127.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.49 per share and revenue of $28.75 billion, which would represent changes of +267.46% and +81.25%, respectively, from the prior 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. 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. 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, 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 remained stagnant. Cheniere Energy is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Cheniere Energy is holding a Forward P/E ratio of 8.01. This valuation marks a premium compared to its industry's average Forward P/E of 4.99.

Meanwhile, LNG's PEG ratio is currently 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 0.24 at yesterday's closing price.

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 13, which puts it in the top 6% 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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