New Fortress Energy (NFE) shares rallied 8.5% in the last trading session to close at $24.16. 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 5% gain over the past four weeks.
The surge can be attributed to New Fortress Energy’s commitment to providing reliable and clean energy to the world by using liquefied natural gas (LNG). As compared to other fossil fuels such as coal, LNG has much lower carbon emissions and is an essential part of the energy transition worldwide. NFE owns and operates natural gas and LNG infrastructure and is well-positioned to capitalize on the growing demand for LNG. Further, the company has recently sold off its liquefaction and storage facility in Miami, FL, and decided to use the proceeds to reduce its debt and invest in high-return downstream projects. NFE's focus on LNG as a clean fuel amid rising demand, alongside its strategy of divesting its non-core assets and reinvesting proceeds into high-return projects, has been a significant growth driver.
This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -67.2%. Revenues are expected to be $515.68 million, down 8.1% 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.
For New Fortress Energy, the consensus EPS estimate for the quarter has been revised 2.1% 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 NFE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
New Fortress Energy is a member of the Zacks Oil and Gas - Integrated - International industry. One other stock in the same industry, Eni SpA (E), finished the last trading session 0.7% higher at $30.92. E has returned 3.7% over the past month.
Eni SpA's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.12. Compared to the company's year-ago EPS, this represents a change of -9.7%. Eni SpA currently boasts a Zacks Rank of #5 (Strong Sell).
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