Here's Why Investors Should Retain Golar LNG (GLNG) Now
Golar LNG Limited GLNG is benefiting from investor-friendly initiatives and solid liquidity.
Factors Favoring GLNG
Efforts to reward its shareholders through share buybacks are impressive. As of third-quarter 2023, Golar LNG had $117.3 million available for further repurchases out of the $150 million approved. It also pays a quarterly dividend of 25 cents per share.
The company’s current ratio (a measure of liquidity) was 1.95 at the end of third-quarter 2023. A current ratio of more than 1 implies that the company has enough liquid assets to cover its short-term liabilities.
Upbeat demand for LNG is a tailwind for Golar LNG. Amid the prolonged Russia-Ukraine war, Europe is likely to have sought gas supplies outside Russia. This is expected to have driven demand for LNG vessels. In fact, the company’s total operating revenues have increased 5% year over year in the first nine months of 2023.
Key Risks
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.
Zacks Rank
GLNG currently carries Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks for investors interested in the Zacks Transportation sector are Air Canada ACDVF and SkyWest SKYW.
Air Canada currently sports a Zacks Rank #1 (Strong Buy). An uptick in passenger traffic is aiding ACDVF. Recently, management announced plans to launch a new year-round route between Montreal and Madrid. You can see the complete list of today’s Zacks #1 Rank stocks here.
The service will commence in May of the following year as part of its expanded international summer 2024 flying schedule to cater to increased demand.
SkyWest currently carries a Zacks Rank #2 (Buy). SKYW's fleet modernization efforts are commendable. Initiatives to reward shareholders also bode well. The Zacks Consensus Estimate for current-quarter earnings has surged 83.3% in the past 60 days.
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SkyWest, Inc. (SKYW) : Free Stock Analysis Report
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