Cheniere Energy (LNG) closed at $156.83 in the latest trading session, marking a +0.27% move from the prior day. This move outpaced the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.54%.
The natural gas company's shares have seen a decrease of 0.68% over the last month, not keeping up with the Oils-Energy sector's gain of 3.8% and the S&P 500's gain of 3.18%.
The upcoming earnings release of Cheniere Energy will be of great interest to investors. In that report, analysts expect Cheniere Energy to post earnings of $2.53 per share. This would mark a year-over-year decline of 63.28%. Meanwhile, our latest consensus estimate is calling for revenue of $4.23 billion, down 42.09% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.56 per share and a revenue of $16.8 billion, indicating changes of -76.52% and -17.61%, respectively, from the former year.
Any recent changes to analyst estimates for Cheniere Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.08% higher within the past month. Currently, Cheniere Energy is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Cheniere Energy is currently exchanging hands at a Forward P/E ratio of 16.36. This represents a premium compared to its industry's average Forward P/E of 10.15.
Also, we should mention that LNG has a PEG ratio of 0.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Oil and Gas - Exploration and Production - United States industry had an average PEG ratio of 0.69.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 220, this industry ranks in the bottom 13% of all industries, numbering over 250.