Trade-Ideas: Cheniere Energy (LNG) Is Today's Pre-Market Leader Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Cheniere Energy as such a stock due to the following factors:
- LNG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $246.9 million.
- LNG traded 50,987 shares today in the pre-market hours as of 8:56 AM.
- LNG is up 2.9% today from yesterday's close.
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More details on LNG:
Cheniere Energy, Inc., an energy company, is engaged in the liquefied natural gas (LNG) related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Currently there are 3 analysts that rate Cheniere Energy a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Cheniere Energy has been 3.3 million shares per day over the past 30 days. Cheniere Energy has a market cap of $19.0 billion and is part of the basic materials sector and energy industry. The stock has a beta of 2.57 and a short float of 5.1% with 5.76 days to cover. Shares are up 11.5% year-to-date as of the close of trading on Thursday.
Analysis:
rates Cheniere Energy as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and feeble growth in the company's earnings per share.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, LNG's share price has jumped by 58.33%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- Despite the weak revenue results, LNG has outperformed against the industry average of 18.7%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for CHENIERE ENERGY INC is rather high; currently it is at 54.91%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, LNG's net profit margin of -240.49% significantly underperformed when compared to the industry average.
- CHENIERE ENERGY INC's earnings per share declined by 14.8% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CHENIERE ENERGY INC reported poor results of -$2.44 versus -$2.32 in the prior year. This year, the market expects an improvement in earnings (-$1.03 versus -$2.44).
- Net operating cash flow has significantly decreased to -$83.07 million or 175.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full Cheniere Energy Ratings Report.
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