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

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Cheniere Energy (LNG - Free Report) closed the most recent trading day at $149.50, moving -0.43% from the previous trading session. This move lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.

Coming into today, shares of the natural gas company had gained 4.63% in the past month. In that same time, the Oils-Energy sector gained 2.19%, while the S&P 500 gained 4.31%.

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 $2.47 per share, which would represent a year-over-year decline of 14.83%. Meanwhile, our latest consensus estimate is calling for revenue of $4.77 billion, down 40.37% from the prior-year quarter.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cheniere Energy is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Cheniere Energy currently has a Forward P/E ratio of 4.82. For comparison, its industry has an average Forward P/E of 7.43, which means Cheniere Energy is trading at a discount to the group.

It is also worth noting that LNG currently has a PEG ratio of 0.16. 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. LNG's industry had an average PEG ratio of 0.38 as of yesterday's close.

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 216, which puts it in the bottom 15% 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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