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Cheniere Energy (LNG) Dips More Than Broader Markets: What You Should Know

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Cheniere Energy (LNG - Free Report) closed the most recent trading day at $151.84, moving -1.22% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 9.78%.

Prior to today's trading, shares of the natural gas company had gained 8.41% over the past month. This has outpaced the Oils-Energy sector's gain of 5.94% and the S&P 500's gain of 4.16% in that time.

Investors will be hoping for strength from Cheniere Energy as it approaches its next earnings release. The company is expected to report EPS of $2.47, down 14.83% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.77 billion, down 40.37% from the year-ago period.

LNG's full-year Zacks Consensus Estimates are calling for earnings of $31.13 per share and revenue of $22.4 billion. These results would represent year-over-year changes of +451.95% and -32.98%, respectively.

Any recent changes to analyst estimates for Cheniere Energy should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% 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.

In terms of valuation, Cheniere Energy is currently trading at a Forward P/E ratio of 4.94. This valuation marks a discount compared to its industry's average Forward P/E of 7.6.

We can also see that LNG currently has a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Exploration and Production - United States stocks are, on average, holding a PEG ratio of 0.39 based on yesterday's closing prices.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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