Venture Global (VG) Soars 14.5%: Is Further Upside Left in the Stock?

Venture Global (VG) shares soared 14.5% in the last trading session to close at $14.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 47.9% gain over the past four weeks.

The surge can be attributed to a favourable outlook for Venture Global, driven by the strong demand for liquefied natural gas (LNG) globally. The company has recently taken a final investment decision on its third greenfield project in Louisiana, CP2 LNG and secured $8.6 billion in project financing. Venture Global currently has approximately 49 MTPA of contracted LNG capacity across its three LNG projects – Calcasieu Pass, Plaquemines and CP2 LNG. This demonstrates VG’s ability to capitalize on the growing demand for the superchilled fuel. Notably, 69% of the total expected LNG cargoes in 2026 are contracted, ensuring stable revenues. The U.S. Energy Information Administration (EIA) forecasts a continued rise in LNG exports in the coming years, with exports expected to surpass 18.1 billion cubic feet per day (Bcf/d) in 2027. This presents a favourable outlook for Venture Global’s business, as the company stands to benefit from increasing global reliance on LNG. The company’s on-time project execution and its ability to secure long-term offtake agreements, coupled with the bullish outlook for LNG, have been significant growth drivers.

This exporter of liquid natural gas is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +6.3%. Revenues are expected to be $4.16 billion, up 43.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Venture Global, the consensus EPS estimate for the quarter has been revised 43.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on VG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Venture Global is a member of the Zacks Oil and Gas - Exploration and Production - United States industry. One other stock in the same industry, California Resources Corporation (CRC), finished the last trading session 0.4% higher at $64.2. CRC has returned 13% over the past month.

For California Resources, the consensus EPS estimate for the upcoming report has changed +95.5% over the past month to $0.4. This represents a change of -62.6% from what the company reported a year ago. California Resources currently has a Zacks Rank of #3 (Hold).

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