We recently published a list of 11 Best American Energy Stocks to Buy Now. In this article, we are going to take a look at where Cheniere Energy, Inc. (NYSE:LNG) stands against other best American energy stocks to buy now.
On Friday, April 4, oil futures reached multiyear lows following China’s response to the tariffs imposed by the Trump administration. This sparks fear of a fall in demand for oil amid a full-blown trade war. The US benchmark for oil prices, West Texas Intermediate (WTI), fell over 7% to close at $61.99 per barrel and Brent crude futures dropped more than 6% to settle at $65.58. Crude has not traded at these levels since 2021.
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Crude losses worsened as China announced it would impose additional tariffs of 34% on US goods. This announcement came as a response to President Trump’s levies, which include increased duties on China-made imports.
President Trump’s tariffs saw financial markets react strongly and crude oil prices sinking as traders assessed the potential impact of a trade war on demand. Energy-related stocks were set to extend losses after dragging the market down with sell-offs in the Dow, S&P 500, and Nasdaq.
Crude losses also accelerated because of a decision by the Organization of Petroleum Exporting Countries and its allies, OPEC+, to increase supply approximately three times more than expected starting in May.
Angie Gildea, KPMG US energy leader, said that markets are still “digesting tariffs” and that the combination of higher oil supply and concerns about a weaker global economy is putting downward pressure on oil prices. She pointed out that this could lead to a new chapter in a volatile market.
Although energy was not included in the latest tariffs announced by the Trump administration on Wednesday, April 2, the escalation of a global trade war could hurt oil demand.
Our Methodology
To compile our list of the 11 best American energy stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest energy companies. We sorted our results based on market capitalization and picked the top 25 American stocks. Next, we focused on the 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 11 best American energy stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A deep sea tanker vessel laden with liquified natural gas, contrailing a majestic stream of white smoke.
Cheniere Energy, Inc. (NYSE:LNG)
Number of Hedge Fund Holders: 70
Cheniere Energy, Inc. (NYSE:LNG) is an international energy company that primarily focuses on liquefied natural gas (LNG). The company is the largest producer and exporter of LNG in the US and the second largest producer of LNG in the world. Cheniere Energy, Inc. (NYSE:LNG) ranks among the best American stocks to buy now.
On March 18, UBS analysts reiterated a “Buy” rating on Cheniere Energy, Inc. (NYSE:LNG) with a steady price target of $277. This affirmation came after the company’s announcement of completing the commissioning phase and achieving substantial completion of Train 1 at the Corpus Christi Stage 3 Liquefaction Project, which is now set to contribute to the company’s financial results and also expected to provide an uplift to 2025 guidance. Train 1 began producing LNG in December 2024. The company completed the project within budget and over 6 months ahead of schedule. The expansion of the Corpus Christi liquefaction facility, known as CCL Stage 3, includes 7 midscale trains with an estimated combined production capacity of over 10 million tons per year. Upon the completion of CCL Stage 3, the facility’s total output capacity is expected to surpass 25 million tons per year. During the Q4 2024 earnings call, Cheniere Energy, Inc. (NYSE:LNG) noted that all 7 trains in the CCL Stage 3 expansion are on track to reach substantial completion by the end of 2026. The company is also working on additional growth projects like Midscale Trains 8 and 9 and the Sabine Pass Expansion. Analysts expect these moves will enhance Cheniere Energy, Inc.’s (NYSE:LNG) guidance for 2025 and highlight growth potential.
Overall, LNG ranks 8th on our list of best mid cap growth stocks. While we acknowledge the potential of LNG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LNG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.