Golar LNG, a company that runs marine vessels that process, store and carry liquefied natural gas, is the IBD Stock of the Day. GLNG stock is finding support at a key level, ahead of first-quarter earnings due on Thursday.
However, some investors might want to wait, or take steps to lower their exposure, should the stock fall sharply following its quarterly report.
GLNG stock has been rising since late February, when more nations and other customers began to seek oil and natural-gas sources outside of Russia. Russia's war on Ukraine, begun Feb. 24, sent oil and gas prices higher as concerns mount over supply disruptions, and as buyers work to avoid sanctions.
GLNG Stock
GLNG stock fell 1.2% to 23.65 in the stock market today. Shares were holding support at their 50-day line.
Aggressive investors could buy the stock if it punches above Tuesday's high of 25. That would also represent the break of a downtrend begun in April, after the stock touched a multiyear high of 26.60.
However, stocks can make big up or down moves following quarterly earnings reports. That is doubly true in the current, unpredictable market. With Golar LNG's earnings due on Thursday, investors considering a move on GLNG stock might be better off waiting for results. An alternative is to study up IBD's options strategy, which may reduce risk of earnings season stock buys.
Even as the market uptrend remains under pressure — amid broader concerns about inflation and the economy — the relative strength line of GLNG stock has advanced. When a stock's relative strength line rises, that means it's outperforming the S&P 500.
Golar LNG runs two carrier ships that haul liquefied natural gas. It has also begun converting ships into floating LNG (FLNG) terminals. These offshore facilities process natural gas produced from undersea sources into LNG close to the production source. Golar has one operational FLNG vessel, and has another undergoing the conversion process.
Golar sold off two subsidiaries in April.
Analysts who cover GLNG stock expect the company to earn 23 cents per share during its first quarter, a huge jump from the two cents it earned a year ago, according to FactSet. Sales were seen falling 16% to $105.6 million.
"European countries looking for gas outside Russia amid the war tensions are likely to have driven demand for LNG vessels," Zacks analysts said in a post on Thursday. "This is expected to have aided Golar LNG's first-quarter performance."
GLNG stock has an 80 Composite Rating. Its EPS Rating is 33.
