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Why New Fortress Energy (NFE) Might be Well Poised for a Surge
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Investors might want to bet on New Fortress Energy (NFE - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for New Fortress Energy, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.48 per share, which is a change of +500% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for New Fortress Energy compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 90%.
Current-Year Estimate Revisions
The company is expected to earn $2.03 per share for the full year, which represents a change of +181.94% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for New Fortress Energy versus no negative revisions. This has pushed the consensus estimate 49.26% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, New Fortress Energy currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for New Fortress Energy have attracted decent investments and pushed the stock 12.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Why New Fortress Energy (NFE) Might be Well Poised for a Surge
Investors might want to bet on New Fortress Energy (NFE - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for New Fortress Energy, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $0.48 per share, which is a change of +500% from the year-ago reported number.
Over the last 30 days, two estimates have moved higher for New Fortress Energy compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 90%.
Current-Year Estimate Revisions
The company is expected to earn $2.03 per share for the full year, which represents a change of +181.94% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, one estimate has moved up for New Fortress Energy versus no negative revisions. This has pushed the consensus estimate 49.26% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, New Fortress Energy currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for New Fortress Energy have attracted decent investments and pushed the stock 12.4% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.