Cheniere Energy (LNG) Stock Sinks As Market Gains: Here's Why
The latest trading session saw Cheniere Energy (LNG) ending at $167.57, denoting a -0.76% adjustment from its last day's close. This change lagged the S&P 500's daily gain of 0.18%. On the other hand, the Dow registered a gain of 0.07%, and the technology-centric Nasdaq increased by 0.1%.
The the stock of natural gas company has fallen by 1.73% in the past month, lagging the Oils-Energy sector's gain of 1.79% and the S&P 500's gain of 2.75%.
Market participants will be closely following the financial results of Cheniere Energy in its upcoming release. The company is forecasted to report an EPS of $2.70, showcasing an 82.89% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $4.5 billion, showing a 50.5% drop compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for Cheniere Energy. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Cheniere Energy possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Cheniere Energy is presently being traded at a Forward P/E ratio of 16.41. This represents a premium compared to its industry's average Forward P/E of 7.11.
Investors should also note that LNG has a PEG ratio of 0.61 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Oil and Gas - Exploration and Production - United States industry held an average PEG ratio of 0.4.
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 240, placing it within the bottom 5% 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
