Here's Why Investors Should Avoid Golar LNG (GLNG) Stock Now
Golar LNG Limited GLNG is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.
Let’s delve deeper.
Southward Earnings Estimate Revisions: The Zacks Consensus Estimate for the current quarter has been revised downward to 50 cents per share from 51 cents over the past 60 days.
Weak Zacks Rank and Style Score: Golar LNG currently carries a Zacks Rank #5 (Strong Sell). Moreover, the company’s current Momentum Score of C shows its short-term unattractiveness.
Other Headwinds: Although economic activities picked up from the pandemic gloom, supply-chain disruptions continue to dent shipping stocks like Golar LNG. Increased operating costs are also limiting bottom-line growth.
The company's return on equity (ROE) undercuts its growth potential. Its ROE (in percentage terms) is currently pegged at 5.9, much lower than its industry’s 16.1.
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL and SkyWest SKYW.
American Airlines currently carries a Zacks Rank #2 (Buy). Improved air-travel demand, particularly on the domestic front, is aiding AAL.
The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025-end. The company aims to attain this objective through naturally occurring amortization.
SkyWest currently sports a Zacks Rank #1 (Strong Buy). SKYW's fleet-modernization efforts are commendable. Initiatives to reward its shareholders also bode well. You can see the complete list of today’s Zacks #1 Rank stocks here.
We are impressed by SKYW's efforts to reward its shareholders through buybacks. To this SKYW has repurchased 9.6 million shares in the first nine months of 2023.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Golar LNG Limited (GLNG) : Free Stock Analysis Report
