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

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In the latest trading session, Cheniere Energy (LNG - Free Report) closed at $147.14, marking a -0.13% move from the previous day. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, lost 4.09%.

Coming into today, shares of the natural gas company had gained 0.22% in the past month. In that same time, the Oils-Energy sector gained 2.63%, while the S&P 500 gained 3.98%.

Cheniere Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cheniere Energy to post earnings of $2.47 per share. This would mark a year-over-year decline of 14.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

Investors should also note any recent changes to analyst estimates for Cheniere Energy. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 1.48% lower within the past month. Cheniere Energy is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Cheniere Energy has a Forward P/E ratio of 4.73 right now. This represents a discount compared to its industry's average Forward P/E of 7.18.

We can also see that LNG currently has a PEG ratio of 0.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Oil and Gas - Exploration and Production - United States was holding an average PEG ratio of 0.37 at yesterday's closing price.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 14% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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