Shares of natural gas play Golar LNG rose an astounding 575% from its Covid crash low 4.54 to a 30.66 per share high on Aug. 25, 2022. The climb was in part due to the trend toward cleaner natural gas for a variety of energy uses. Golar has mostly gone sideways since. On Monday though, the Relative Strength Rating for Golar LNG stock climbed to 72, up from 65 last week.
The 72 RS Rating means that Bermuda-based Golar LNG stock bested more than 70% of all stocks for price performance this past year. Over 100 years of market history reveals that the market's biggest winners tend to have an RS Rating over 80 as they launch their biggest runs. See if Golar can continue to show renewed price strength and clear that threshold.
Golar LNG Stock Popped On Europe Opportunity
When Russia invaded Ukraine last year, Europe's supply of natural gas from Russia was curtailed. The European Union then gradually ended purchases of petroleum products from Russia, even though Europe formerly depended heavily on Russia for gas to heat homes, to cook and other uses. Enter stage left Golar LNG and other liquefied natural gas suppliers who are providing floating LNG terminals to Europe.
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Golar LNG stock had a bang-up year last year, posting EPS growth of 252% and 999%+ in the last two quarters. It's been consolidating this year though and hasn't recently formed a tradable pattern. The question is: Can Golar LNG sales and profits fire up again and lift its stock higher?
Earnings Tanked This Year
The company reported 6 cents earnings per share last quarter, down significantly from 96 cents EPS a year ago. Revenue grew 15% year over year to $77.5 million in its most recent quarter, its second consecutive quarter of rising sales. The next quarterly numbers are expected on or around Nov. 21.
Golar LNG stock earns the a weak No. 38 rank among its peers in the 49-stock Oil&Gas-Transportation/Pipeline industry group. Euronav and Frontline are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary Relative Strength Rating measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks holds up against all the other stocks in our database.
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