Here’s why the Venture Global stock price is in a major bull run

Venture Global stock price has staged a strong comeback this year, helped by the ongoing Iran war that has pushed natural gas prices higher. VG jumped to a high of $16.7 this month, its highest level since July last year. It has jumped by over 180% from its lowest level this year, bringing its market capitalization to over $38 billion.

Venture Global stock is benefiting from the Iran war 

Venture Global is a top company in the energy industry, where it offers Liquified Natural Gas (LNG), sourced from the United States. 

The company uses the “design-one, build-many” approach that makes it possible to deliver gas faster to customers in North America and other countries. It has several projects in the US, which are mostly in Louisiana, and has reached deals with offtaking partners like Shell, BP, Repsol, Total, and Unipec.

Venture Global’s business has continued doing well in the past few years as demand has continued rising. This trend may continue this year because of the ongoing Iran war that has pushed prices much higher in the past few months. Data shows that gas has been in a strong uptrend, especially in Europe.

The most recent results showed that the company's business is achieving its goals. It delivered 380 cargoes last year, inside its guided range of between 367 and 387 cargoes. It now expects to deliver between 486 and 527 cargoes this year. Also, the company has contracted 69% of its 2026 cargoes, a figure that has likely risen as demand from Europe rises.

The results showed that Venture Global's revenue jumped to $4.4 billion in the fourth quarter of last year from $1.52 billion in the same period a year earlier. Its income from operations jumped to $1.71 billion from the previous $594 million. This growth will accelerate as more of the ongoing projects, including Plaquemines and Calcasieu Pass come online.

Wall Street analysts believe that the company's growth will continue this year, with the revenue in the current quarter coming in at $3.7 billion, up by 28% YoY. The annual revenue is expected to come in at $16.46 billion, up by 20% YoY.

However, the revenue will likely be stronger than expected as most of these estimates came before the war started. 

At the same time, the company is still undervalued. It has a forward PE ratio of 15, lower than the S&P 500 Index’s 23. Its valuation multiple is also lower than the energy sector median of 16.

The risk for the Venture Global stock is that since it has jumped during the war, it may experience a reversal once it ends.

Venture Global stock price technical analysis 

VG stock price chart | Source: TradingView 

The daily timeframe chart shows that the VG stock price has rebounded in the past few months, moving from a low of $5.70 in January to the current $15.75. It has jumped above the 50% Fibonacci Retracement level.

The stock has moved above the 25-day Exponential Moving Average (EMA) and the Supertrend indicator. The Relative Strength Index (RSI) has moved to the overbought level of 70.

Therefore, the stock will likely continue rising as bulls target the all-time high of $25, which is about 60% above the current level. This rebound may, however, come under pressure once the war ends and natural gas prices start falling.