Golar LNG Limited’s GLNG proactive efforts to expand its services are commendable. The company’s recent acquisition of all minority interests in the FLNG (floating LNG) Hilli is boosting its position in the FLNG sector. Due to these tailwinds, GLNG shares have performed impressively on the bourse. If you have not taken advantage of the share price appreciation yet, it’s time to do so.
Factors Favoring GLNG Stock
Robust Price Performance: The company’s price trend reveals that its shares have surged 92% over the past six months, surpassing the industry’s 16.7% fall.
Image Source: Zacks Investment Research
Northward Estimate Revisions: The Zacks Consensus Estimate for earnings per share has been revised upward by 17.1% over the past 60 days for the fourth quarter of 2024. For 2025, the consensus mark for earnings per share has moved 2.5% north in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Solid Zacks Rank: GLNG currently sports a Zacks Rank #1 (Strong Buy).
Positive Earnings Surprise History: Golar LNG has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average surprise of 30.2%.
Growth Factors: The acquisition of all minority interests in the FLNG Hilli by Golar LNG represents a major step in strengthening its position within the FLNG sector. On Dec. 24, 2024, GLNG acquired the remaining minority stakes in the FLNG Hilli from Seatrium and Black & Veatch for $90.2 million. Currently, the FLNG Hilli is contracted with Perenco in Cameroon until 2026, after which it will relocate to Argentina under a 20-year contract. Golar's increased ownership, effective from Jan. 1, 2025, will contribute an additional $0.5 billion to its adjusted EBITDA backlog. Golar made a $7 million payment to Seatrium to settle other outstanding issues.
The company’s strong commitment to rewarding its shareholders through dividends and share buybacks is commendable. In 2023, Golar LNG distributed more than $168 million in dividends and buybacks. In the third quarter of 2024, the company paid out a dividend of $0.25 per share. $74.1 million of the approved share buyback scheme of $150.0 million remains available.
GLNG exited the third quarter of 2024 with a robust liquidity position, holding approximately $732 million in cash and cash equivalents and a net debt of $646 million. The current ratio (a measure of liquidity) stood at 1.55 at the September-end quarter, which is favorable, as a current ratio above 1 indicates that the company has sufficient cash to meet its debt obligations.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may also consider Alaska Air Group ALK and Allegiant ALGT.
Alaska Air Group currently carries a Zacks Rank #2 (Buy). ALK has an expected earnings growth rate of 23.8% for the current year.
The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 23.8%. Shares of ALK have risen 99.2% in the past year.
Allegiant currently sports a Zacks Rank #1 and has an expected earnings growth rate of more than 100% for the current year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 31.3%. Shares of ALGT have risen 9.8% in the past year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
Golar LNG Limited (GLNG): Free Stock Analysis Report
/Cisco%20Systems%2C%20Inc_%20HQ-by%20Sundry%20Photography%20via%20iStock.jpg)
/Pfizer%20Inc_%20logo%20sign-by%20JHVEPhoto%20via%20iStock.jpg)
