Inflation is a double-edged sword, no question about it. For some, it has been an absolute boon. For others, it is a scourge. Most of us go about our lives never thinking about inflation…until it hits. There is no question that inflation is hitting us now. The secret to success becomes looking for stocks in industries which benefit from the big CPI numbers. One area has been in energy, where oil and natural gas prices have risen dramatically since mid-2020.
Today’s Bull of the Day is a stock in the natural gas business. I’m talking about Zacks Rank #1 (Strong Buy) Golar LNG Limited (GLNG - Free Report) . Golar LNG Limited provides infrastructure for the liquefaction, transportation, and regasification of LNG. It operates through Shipping, FLNG, and Power segments. The company engages in the acquisition, ownership, operation, and chartering of LNG carriers, Floating Liquefaction Natural Gas Vessel (FLNG), and floating storage regasification units (FSRUs), as well as operates external vessels. As of April 16, 2021, it operated ten LNG carriers, one FSRU, and two FLNGs.
Over the course of the last sixty days, two analysts have increased their earnings estimates for next year while one has done so for the current year. That has pushed up the Zacks Consensus Estimate for the current year from a 3-cent loss to a 2-cent loss while next year’s number is up from a 38-cent profit to a 41-cent profit. That is likely to change as the stock just reported earnings this morning. The company reported Q4 net of $44.6 million on revenues of $115 million.
This is a stock that traded down in the $5 level in early 2020. If you look back on the Price, Consensus and EPS Surprise Chart, you can see how the earnings trend was terrible back then. The company would constantly over-promise and under deliver. That trend reversed in the middle of 2021. Since then, estimates have ticked on upwards, helping to underpin the rally in the stock.
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Inflation is a double-edged sword, no question about it. For some, it has been an absolute boon. For others, it is a scourge. Most of us go about our lives never thinking about inflation…until it hits. There is no question that inflation is hitting us now. The secret to success becomes looking for stocks in industries which benefit from the big CPI numbers. One area has been in energy, where oil and natural gas prices have risen dramatically since mid-2020.
Today’s Bull of the Day is a stock in the natural gas business. I’m talking about Zacks Rank #1 (Strong Buy) Golar LNG Limited (GLNG - Free Report) . Golar LNG Limited provides infrastructure for the liquefaction, transportation, and regasification of LNG. It operates through Shipping, FLNG, and Power segments. The company engages in the acquisition, ownership, operation, and chartering of LNG carriers, Floating Liquefaction Natural Gas Vessel (FLNG), and floating storage regasification units (FSRUs), as well as operates external vessels. As of April 16, 2021, it operated ten LNG carriers, one FSRU, and two FLNGs.
Over the course of the last sixty days, two analysts have increased their earnings estimates for next year while one has done so for the current year. That has pushed up the Zacks Consensus Estimate for the current year from a 3-cent loss to a 2-cent loss while next year’s number is up from a 38-cent profit to a 41-cent profit. That is likely to change as the stock just reported earnings this morning. The company reported Q4 net of $44.6 million on revenues of $115 million.
This is a stock that traded down in the $5 level in early 2020. If you look back on the Price, Consensus and EPS Surprise Chart, you can see how the earnings trend was terrible back then. The company would constantly over-promise and under deliver. That trend reversed in the middle of 2021. Since then, estimates have ticked on upwards, helping to underpin the rally in the stock.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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