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Strength Seen in Golar LNG (GLNG): Can Its 10.4% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

Golar LNG (GLNG) shares rallied 10.4% in the last trading session to close at $22.66. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.7% loss over the past four weeks.

Investors seem to be pleased by the news that Nigerian National Petroleum Corporation has entered into a deal with GLNG to build a floating LNG plant in Nigeria. In fact, shares of Golar LNG performed well lately, gaining 8.6% over the past month as sentiments surrounding the shipping industry improve.

This operator of carriers for natural gas shipping is expected to post quarterly earnings of $1.19 per share in its upcoming report, which represents a year-over-year change of +250%. Revenues are expected to be $72.97 million, down 5.6% 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.

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For Golar LNG, the consensus EPS estimate for the quarter has been revised 4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on GLNG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Golar LNG belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Eagle Bulk Shipping (EGLE), closed the last trading session 0.6% higher at $44.65. Over the past month, EGLE has returned -3.3%.

Eagle Bulk Shipping's consensus EPS estimate for the upcoming report has changed -25.7% over the past month to -$0.14. Compared to the company's year-ago EPS, this represents a change of -103.5%. Eagle Bulk Shipping currently boasts a Zacks Rank of #3 (Hold).

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Golar LNG Limited (GLNG) : Free Stock Analysis Report

Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research