Cheniere Energy (LNG) Stock Declines While Market Improves: Some Information for Investors
Cheniere Energy (LNG) closed the latest trading day at $164.24, indicating a -0.66% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.19%.
The the stock of natural gas company has fallen by 3.52% in the past month, leading the Oils-Energy sector's loss of 4.39% and undershooting the S&P 500's gain of 2.48%.
The investment community will be closely monitoring the performance of Cheniere Energy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.70, reflecting an 82.89% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.5 billion, down 50.5% from the prior-year quarter.
Any recent changes to analyst estimates for Cheniere Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.49% downward. Cheniere Energy presently features a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cheniere Energy has a Forward P/E ratio of 16.47 right now. This denotes a premium relative to the industry's average Forward P/E of 7.87.
It is also worth noting that LNG currently has a PEG ratio of 0.62. 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 industry currently had an average PEG ratio of 0.66 as of yesterday's close.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 247, placing it within the bottom 2% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
