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Here's Why Investors Should Give Golar LNG Stock a Miss Now

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Key Takeaways

  • Estimates for GLNG's earnings slashed, with brokers signaling weak near-term prospects.
  • Shares dropped 2.6% year to date, with a weak Zacks Rank and negative ESP adding pressure.
  • Operating costs rose 5.1% in Q2, while tariffs and sanctions drove further headwinds.

Golar LNG Limited (GLNG - Free Report) is grappling with surging operating expenses, significantly impacting its performance. Economic uncertainties are also hurting the company’s prospects, making it an unattractive choice for investors’ portfolios.

Let’s delve deeper.

GLNG: Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for GLNG’s current-quarter earnings has been revised 20% downward over the past 60 days and is pegged at 44 cents per share. Meanwhile, the Zacks Consensus Estimate for next-quarter earnings stands at 45 cents per share, indicating an 18.2% fall over the past 60 days.The unfavorable estimate revision indicates brokers’ lack of confidence in the stock.

Dim Price Performance: Golar LNG’s price trend reveals that its shares have fallen 2.6% over the year-to-date period compared to the Oil and Gas - Integrated - International industry’s 3% rise.

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Weak Zacks Rank & Earnings ESP: GLNG currently carries a Zacks Rank #5 (Strong Sell) and has an earnings ESP of -18.18%.

Headwinds: Golar LNG is struggling with significant financial challenges, with escalated operating expenses hurting the company’s prospects. The total operating expenses rose 5.1% year over year in the second quarter of 2025. Vessel operating expenses, accounting for 72.5% of the total operating expenses, increased 2.18% year over year.

Economic uncertainties, such as U.S. trade policies and other externalities, create a complex and often volatile environment for oil-energy companies like Golar LNG. The imposition of tariffs on materials such as steel directly raises the costs of building and maintaining essential infrastructure, from pipelines to GLNG's Floating Liquefied Natural Gas vessels.

Moreover, trade sanctions, particularly on countries like Russia, can disrupt global energy flows and create geopolitical tensions that lead to market uncertainty and divert trade, as seen with U.S.-China trade disputes impacting LNG exports.

Stocks to Consider

Investors interested in the Transportation sector may consider LATAM Airlines Group (LTM - Free Report) and The Greenbrier Companies (GBX - Free Report) .

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining quarter, delivering an average beat of 4.04%.

GBX currently carries a Zacks Rank #2 (Buy).

Greenbrier has an expected earnings growth rate of 33% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and met once, delivering an average beat of 70%.


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Greenbrier Companies, Inc. (The) (GBX) - free report >>

LATAM Airlines Group S.A. (LTM) - free report >>

Golar LNG Limited (GLNG) - free report >>

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