Cheniere Energy (LNG): 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 Cheniere Energy ( LNG) 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 $150.6 million.
  • LNG traded 13,481 shares today in the pre-market hours as of 9:02 AM.
  • LNG is up 2% today from Friday'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 3.2 million shares per day over the past 30 days. Cheniere Energy has a market cap of $16.5 billion and is part of the basic materials sector and energy industry. The stock has a beta of 5.26 and a short float of 8.5% with 9.41 days to cover. Shares are up 62.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Cheniere Energy as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

Highlights from the ratings report include:
  • LNG's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 2.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 144.97% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.
  • CHENIERE ENERGY INC has improved earnings per share by 18.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CHENIERE ENERGY INC reported poor results of -$2.32 versus -$1.82 in the prior year. This year, the market expects an improvement in earnings (-$1.22 versus -$2.32).
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CHENIERE ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$18.22 million or 37.82% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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