Cheniere Energy (LNG) Gains But Lags Market: What You Should Know – October 17, 2022

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Cheniere Energy (LNG Free Report) closed at $171.44 in the latest trading session, marking a +0.52% move from the prior day. The stock lagged the S&P 500’s daily gain of 2.65%. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the natural gas company had gained 1.97% over the past month, outpacing the Oils-Energy sector’s loss of 4.88% and the S&P 500’s loss of 8.99% in that time.

Wall Street will be looking for positivity from Cheniere Energy as it approaches its next earnings report date. This is expected to be November 3, 2022. The company is expected to report EPS of $4.78, up 408.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.61 billion, up 137.94% from the year-ago period.

LNG’s full-year Zacks Consensus Estimates are calling for earnings of $12.55 per share and revenue of $30.72 billion. These results would represent year-over-year changes of +235.68% and +93.67%, 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.26% higher. Cheniere Energy is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note Cheniere Energy’s current valuation metrics, including its Forward P/E ratio of 13.59. This valuation marks a premium compared to its industry’s average Forward P/E of 4.98.

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 31, putting it in the top 13% 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.

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



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