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Cheniere Energy (LNG) Gains But Lags Market: What You Should Know

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Cheniere Energy (LNG - Free Report) closed at $131.98 in the latest trading session, marking a +0.02% move from the prior day. The stock lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, added 0.17%.

Coming into today, shares of the natural gas company had lost 5.76% in the past month. In that same time, the Oils-Energy sector lost 15.81%, while the S&P 500 lost 6.79%.

Wall Street will be looking for positivity from Cheniere Energy as it approaches its next earnings report date. The company is expected to report EPS of $2.99, up 453.7% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $6.85 billion, up 127.13% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $15.49 per share and revenue of $28.75 billion, which would represent changes of +267.46% and +81.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cheniere Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cheniere Energy is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Cheniere Energy has a Forward P/E ratio of 8.52 right now. This valuation marks a premium compared to its industry's average Forward P/E of 4.15.

It is also worth noting that LNG currently has a PEG ratio of 0.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Exploration and Production - United States industry currently had an average PEG ratio of 0.22 as of yesterday's close.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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