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Is Cheniere Energy (LNG) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Cheniere Energy (LNG). LNG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 18.62, while its industry has an average P/E of 18.89. Over the last 12 months, LNG's Forward P/E has been as high as 29.88 and as low as -873.01, with a median of 23.77.

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LNG is also sporting a PEG ratio of 1.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LNG's industry currently sports an average PEG of 1.61. LNG's PEG has been as high as 1.35 and as low as -29.66, with a median of 0.85, all within the past year.

These are just a handful of the figures considered in Cheniere Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LNG is an impressive value stock right now.


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