Cheniere Energy is a strong buy as the price reclaims $128 support

By:
on Jun 28, 2022
  • Cheniere Energy expects more than 54% growth in EPS.
  • The price of $134 is above a support level and is likely to gain past $150.
  • Cheniere Energy is a strong buy with a price target of $180.

Cheniere Energy Inc (NYSEAMERICAN:LNG) is trading at $134 and is bullish. Previously, the stock pulled back from a high of $146 and hit a low of $120. That decline was due to bear market fears. In the last five days, the stock is up 4.32%. It is also consolidating between the current level and $150. We think the stock is gathering momentum to rise further.

The oil and gas industry has been robust this year as prices increased. For companies like Cheniere Energy, the strength of the industry is the key factor pushing the valuations up. Oil and gas prices can be expected to remain elevated for the coming few years. That means that the stocks like Cheniere will continue growing the valuations.

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Cheniere Energy is an A-rated growth stock in a robust industry. The stock will certainly outperform the industry. This is especially important because the stock will report strong growth in earnings. Earnings growth is projected at 54.5% per annum over the next 3 to 5 years. We think that Cheniere will surprise the market in the next earnings release.

Cheniere Energy reclaims $128 support

Source – TradingView

Cheniere Energy has reclaimed $128 level after breaking below it. The stock is currently rising above the support. However, $130 to $150 remains a consolidation zone. We think that the stock is building momentum ready for a breakout. That would send the price to a target of $180. Additionally, this analysis considers that Cheniere has support at $128. The stock is unlikely to drop below this level.

Summary

Cheniere Energy is an attractive growth stock in the now robust oil and gas industry. Earnings are expected to grow by more than 54%. The stock has support at $128 and is preparing to breakout above $150.

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