Cheniere Energy (LNG) Stock Sinks As Market Gains: What You Should Know

·3-min read

Cheniere Energy (LNG) closed at $146.65 in the latest trading session, marking a -0.53% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.

Coming into today, shares of the natural gas company had lost 0.29% in the past month. In that same time, the Oils-Energy sector lost 5.47%, while the S&P 500 lost 1.21%.

Cheniere Energy will be looking to display strength as it nears its next earnings release. On that day, Cheniere Energy is projected to report earnings of $5.38 per share, which would represent a year-over-year decline of 26.8%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, down 12.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.22 per share and revenue of $23.11 billion. These totals would mark changes of +187.59% and -30.86%, respectively, from last year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.69% higher. Cheniere Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Cheniere Energy's current valuation metrics, including its Forward P/E ratio of 9.09. This represents a premium compared to its industry's average Forward P/E of 5.32.

Also, we should mention that LNG has a PEG ratio of 0.85. 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 0.29 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 221, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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