With market uncertainty resurfacing, investors will be looking for stocks that can weather a potential economic downturn.
One company that may be catching investors' attention after releasing its Q4 results on Thursday is Cheniere Energy LNG. While LNG wasn’t able to shake off the volatility in today’s trading session, Cheniere crushed its Q4 EPS expectations, making a trend of positive earnings estimate revisions likely to continue.
Engaged in liquified natural gas production, Cheniere’s earnings were expected to drop to $2.69 per share after a tougher-to-compete against period that saw Q4 EPS at $5.76 a year ago. However, Cheniere reported Q4 EPS of $4.33, crushing expectations by 61%.
This came on sales of $4.43 billion, which was down from $4.82 billion in the comparative quarter but edged estimates of $4.4 billion. Operating North America’s first large-scale liquified gas export facility, Cheniere has exceeded earnings expectations in three of its last four quarterly reports with a very impressive average EPS surprise of 74.42%.
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Most intriguing, is that before Cheniere’s massive Q4 earnings beat, fiscal 2025 EPS estimates had already increased 6% over the last 60 days from $11.04 a share to $11.70 (Current Fiscal Year). It’s also noteworthy that FY26 EPS estimates are up 4% in the last two months from $12.28 a share to $12.84.
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With positive earnings estimate revisions being the biggest indicator of more upside in a stock, LNG is up a modest +3% year to date despite falling over 2% in Friday’s broader selloff. Furthermore, Cheniere’s stock has spiked over +40% in the last year and is sitting on +90% gains in the last three years.
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Known for its massive earnings potential, Cheniere Energy stock will be one to keep an eye on in the coming weeks and currently sports a Zacks Rank #2 (Buy). Reassuringly, LNG is at a reasonable 19.4X forward earnings multiple and does offer a 0.88% annual dividend yield.
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