5 Most Undervalued Natural Gas Stocks To Buy According To Hedge Funds

1. Cheniere Energy, Inc. (NYSE:LNG)

TTM PE Ratio as of November 8: 3.42

Number of Hedge Fund Holders: 60

Cheniere Energy, Inc. (NYSE:LNG) is a Texas-based midstream energy company. Through its subsidiaries, the company engages in LNG and natural gas marketing businesses, gas liquefaction and export, regasification, and more.

On November 2, Cheniere Energy, Inc. (NYSE:LNG) announced that it has signed an agreement with Foran Energy Group Co., Ltd. Under the liquefied natural gas sale and purchase agreement, the company’s subsidiary, Cheniere Marketing, will provide nearly 0.9 million tons per annum of LNG for 20 years.

On November 2, Cheniere Energy, Inc. (NYSE:LNG) posted its third-quarter earnings result with an EPS of $7.03. The company’s revenue of $4.2 billion surpassed the estimates by $90 million. During the quarter, the company paid off $50 million of long-term debt and successfully repurchased 2.2 million shares for $357 million.

On October 30, Cheniere Energy, Inc. (NYSE:LNG) increased its quarterly dividend by 10% to $0.435, payable by November 17 to the shareholders of record on November 9. As of November 8, the dividend yield of the company is 1.022%.

Cheniere Energy, Inc. (NYSE:LNG) was mentioned in TimesSquare Capital Management’s Q4 2022 investor letter. Here is what it said:

“Within Energy, Cheniere Energy, Inc. (NYSE:LNG) is an energy infrastructure company that operates liquefied natural gas (LNG) terminals in Louisiana and Texas. Despite reporting inline for the latest quarter, its stock traded down -9%. Contributing factors were Europe had filled its storage ahead of the winter and a recent dip in natural gas pricing. The market for LNG is likely to remain tight for the next several years. Notably, Cheniere paid down $1.3 billion of long-term debt and repurchased $75 million of common stock during the quarter. Cheniere is well positioned to benefit from ongoing tightness in global gas markets.”

You can also look at the 11 Best Edge Computing Stocks to Buy Now and the 11 Best Transportation Stocks To Buy Heading Into 2024.

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