Back to top

Image: Bigstock

New Fortress Energy (NFE) Moves 6.2% Higher: Will This Strength Last?

Read MoreHide Full Article

New Fortress Energy (NFE - Free Report) shares rallied 6.2% in the last trading session to close at $38.13. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 41.1% gain over the past four weeks.

A rapid transition in energy consumption is crucial to solving the climate crisis. As a liquefied natural gas (LNG) company, New Fortress Energy is well positioned to capitalize on the global LNG demand as it has been rising and is expected to nearly double from current levels by 2040. Also, the company’s most recent $2-$2.5 billion cash-generation target in the next few months is likely to have driven the stock price.

This company is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of +276.2%. Revenues are expected to be $404.5 million, up 177.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For New Fortress Energy, the consensus EPS estimate for the quarter has been revised 64.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NFE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

New Fortress Energy belongs to the Zacks Oil and Gas - Integrated - International industry. Another stock from the same industry, BP (BP - Free Report) , closed the last trading session 1% higher at $31.05. Over the past month, BP has returned 5.4%.

BP's consensus EPS estimate for the upcoming report has changed -0.6% over the past month to $1.15. Compared to the company's year-ago EPS, this represents a change of +49.4%. BP currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


BP p.l.c. (BP) - free report >>

New Fortress Energy LLC (NFE) - free report >>

Published in