Cheniere Energy (LNG) Stock Drops Despite Market Gains: Important Facts to Note
Cheniere Energy (LNG) closed at $161.05 in the latest trading session, marking a -0.83% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.23%. Elsewhere, the Dow saw an upswing of 1.06%, while the tech-heavy Nasdaq appreciated by 1.7%.
Shares of the natural gas company have depreciated by 5.43% over the course of the past month, underperforming the Oils-Energy sector's loss of 4.69% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Cheniere Energy in its forthcoming earnings report. The company is expected to report EPS of $2.72, down 82.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.5 billion, down 50.5% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cheniere Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Cheniere Energy is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Cheniere Energy is currently trading at a Forward P/E ratio of 15.78. This expresses a premium compared to the average Forward P/E of 7.37 of its industry.
We can also see that LNG currently has a PEG ratio of 0.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.59 at yesterday's closing price.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 244, this industry ranks in the bottom 4% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cheniere Energy, Inc. (LNG) : Free Stock Analysis Report
