IPO Stock Of The Week: LNG Leader Excelerate Energy Eyes New Buy Point

A recent addition to the IBD IPO Leaders list, liquefied natural gas leader Excelerate Energy (EE) is a top IPO stock to watch. Excelerate is approaching a new buy point following a six-week win streak.

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IPO Stock To Watch: Excelerate Energy

Founded in 2003, Texas-based Excelerate delivers re-gasified natural gas around the world. Re-gasification refers to the conversion of liquid natural gas (LNG) back to natural gas. The company also provides integrated services along the entire LNG value chain with the objective of delivering rapid-to-market and reliable LNG. 

“Since our last earnings call in May, we’ve continued to see strong demand for flexible LNG infrastructure across the globe as countries seek energy security and independence,” said Chief Executive Steven Kobos in the second-quarter earnings call.

“The increased competition for LNG supply has only exacerbated an already tight market, further elevating spot pricing amid strong demand from European countries and driving increased competition between Europe and non-OECD countries,” he said, referring to the organization for Economic Co-operation and Development.

Per the company’s IPO filing, Excelerate focuses on flexible liquefied natural gas solutions for emerging markets that often rely on coal as their primary energy source.

In the most recent quarter, Excelerate lost 8 cents per share. In the year-ago period, the company earned 6 cents. On the plus side, revenue surged 223% vs. the year-ago period, to $622.9 million. For the full year, the company’s earnings are expected to fall 64% to 56 cents.

Excelerate Eyes Buy Point

Excelerate Energy stock is a new member of the IBD IPO Leaders list, which utilizes special screening criteria to find up-and-coming stocks with strong fundamental and technical traits.

EE stock is building a cup base with a 30.92 buy point. With the IPO stock still about 13% away from its buy point, keep an eye out for a potential handle to offer a lower entry.

In addition, the relative strength line is moving up sharply, but remains a bit off its old highs. Look for that to hit a new high if the stock is able to mount a breakout. The RS line measures a stock’s price performance vs. the broad market.

Also in the LNG industry, IBD Leaderboard stock Cheniere Energy (LNG) is sharply extended beyond a 150.10 buy point.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on IPO stocks.

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