Back to top

Image: Bigstock

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

Read MoreHide Full Article

Key Takeaways

  • Golar LNG has seen earnings estimates slashed, with 2025 and 2026 consensus forecasts cut in the past 90 days.
  • GLNG shares have dropped 12.5% in six months, lagging the Oil and Gas integrated international industry.
  • GLNG grapples with higher vessel operating costs, economic uncertainties and geopolitical tensions.

Golar LNG Limited (GLNG - Free Report) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.

Let’s delve deeper.

Key Risks to Watch

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for fourth-quarter 2025 earnings has moved 17.39% south in the past 90 days. For 2025 and 2026, the consensus mark for earnings has been revised 19.3% and 24.78% downward, respectively, in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Zacks Investment Research Image Source: Zacks Investment Research

Dim Price Performance: The company’s price trend reveals that its shares have lost 12.5% over the past six months against the Oil and Gas - Integrated - International industry’s 1.6% growth.

GLNG Stock Six-Month Price Comparison

Zacks Investment Research Image Source: Zacks Investment Research

Weak Zacks Rank and Style Score: Golar LNG currently carries a Zacks Rank #5 (Strong Sell). The company’s current Value Score of F shows its unattractiveness.

Negative Earnings Surprise History: Golar LNG has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters (outpaced the mark in the remaining quarter), delivering an average miss of 5.83%.

Zacks Investment Research Image Source: Zacks Investment Research

Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For 2025, Golar LNG’s earnings are expected to decline 46.82% year over year.

Other Headwinds: Golar LNG is grappling with financial challenges, with escalated operating expenses hurting the company’s prospects. Higher vessel operating expenses are likely to keep the bottom line under pressure. Vessel operating expenses increased 44.2% year over year during the third quarter of 2025.

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.

Bearish Industry Rank: The industry to which Golar LNG belongs currently has a Zacks Industry Rank of 156 (out of 243). Such an unfavorable rank places it in the bottom 35% of Zacks Industries. Studies show that 50% of a stock’s price movement is directly related to the performance of the industry group it belongs to.

A mediocre stock within a strong group is likely to outperform a robust stock in a weak industry. Hence, reckoning the industry’s performance becomes imperative.

Stocks to Consider

Investors interested in the Transportation sector can consider Expeditors International of Washington, Inc. (EXPD - Free Report) and LATAM Airlines Group (LTM - Free Report) .

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

EXPD has an expected earnings growth rate of 3.50% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%.

LTM carries a Zacks Rank #2 (Buy). LTM has an expected earnings growth rate of 52.63% for the current year. The company has a solid earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, and met in the remaining one, delivering an average beat of 29.84%. The Zacks Consensus Estimate for LTM’s 2025 earnings has moved 5.34% north in the past 60 days.

Published in