Back to top

Image: Bigstock

Cheniere Energy (LNG) Soars 5.4%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Cheniere Energy (LNG - Free Report) shares soared 5.4% in the last trading session to close at $244.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% loss over the past four weeks.

Cheniere Energy's stock price rose on Friday, likely driven by strong global LNG demand, the company's leading position in LNG production and export, recent positive financial performance and expansion announcements including a final investment decision on the Corpus Christi Midscale Trains 8 & 9 Project, and positive analyst outlooks. The Port of Corpus Christi's record export volumes also likely contributed to this positive market sentiment. These factors combined to create a favorable environment for LNG, leading to increased investor confidence and a rise in its stock price.

This natural gas company is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of -38.5%. Revenues are expected to be $4.13 billion, up 27% 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 Cheniere Energy, the consensus EPS estimate for the quarter has been revised 6.8% 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 LNG 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 >>>>

Cheniere Energy is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, Northern Oil and Gas (NOG - Free Report) , finished the last trading session 1.1% lower at $27.24. NOG has returned -11.9% over the past month.

For Northern Oil and Gas, the consensus EPS estimate for the upcoming report has changed -3.2% over the past month to $0.87. This represents a change of -40.4% from what the company reported a year ago. Northern Oil and Gas currently has a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


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


Cheniere Energy, Inc. (LNG) - free report >>

Northern Oil and Gas, Inc. (NOG) - free report >>

Published in