Cheniere Energy (LNG) shares soared 6% in the last trading session to close at $243.09. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9% gain over the past four weeks.
Cheniere Energy's recent stock surge reflects investor optimism fueled by the incoming Trump administration's proposed policy shifts to promote the fossil fuel industry and LNG exports. Key measures include plans to lift the freeze on LNG export approvals, which would expand U.S. LNG markets, and rollbacks of environmental regulations, signaling a broader pro-business and deregulation agenda that benefits LNG exporters. Combined with the administration's focus on energy dominance through increased offshore drilling and fossil fuel production, these initiatives create a favorable environment for Cheniere Energy's growth. Additionally, a recent rise in natural gas prices, driven by colder weather and higher demand for heating, has boosted Cheniere’s shares. The increase in natural gas prices and the potential for more LNG exports make Cheniere an attractive investment, further driving its stock performance.
This natural gas company is expected to post quarterly earnings of $2.74 per share in its upcoming report, which represents a year-over-year change of -52.4%. Revenues are expected to be $4.41 billion, down 8.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Cheniere Energy, the consensus EPS estimate for the quarter has been revised 1.7% 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 #2 (Buy). 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, Amplify Energy (AMPY), finished the last trading session 0.8% lower at $6.48. AMPY has returned 6.7% over the past month.
Amplify Energy's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.30. Compared to the company's year-ago EPS, this represents a change of -72%. Amplify Energy currently boasts a Zacks Rank of #5 (Strong Sell).
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