CNBC’s Jim Cramer on Tuesday selected three liquefied natural gas stocks that investors should consider buying.
“Two of them are pure LNG export play — a bit more difficult — and one more more diversified story, really perfect for home players who are worried about volatility,” the Mad Money host said.
Russia’s ongoing invasion of Ukraine has led the US to raise concerns about limited supplies of goods such as energy and food, and to impose economic sanctions on Russia. In late March, the US said it would work with global partners to ship more than 15 billion cubic meters of liquefied natural gas to Europe this year to reduce dependence on Russian imports.
May natural gas futures rose 6.55% on Tuesday to around $6.10.
Here is Cramer’s list of three LNG stocks he thinks investors should look at, starting with his favorite:
Sempra Energy is “It’s not a clean game, but it has a good LNG export business,” Cramer said.
“I like it in the long run as it’s the single best growth utility with an amazing LNG incentive… If you’re looking for ways to meet Europe’s LNG demand, I like Sempra Energy the best,” he said. , adding that the business is “stable” and its shares are still cheap compared to the company’s earnings.
Cramer also spoke about two other LNG stocks he thinks could be invested in: Cheniere Energy and Tellurian.
“This is the industry’s safest clean game… Analysts expect Cheniere’s sales and earnings to peak this year. If you think that the LNG business can remain strong beyond 2022, then I bless you to buy it, but otherwise it is possible. the good news is already in the making and we are suddenly in a not-so-good stock market,” Cramer said.
“Given that stocks have almost doubled since the end of last year, I think you can afford to be patient. Just wait for a better entry point,” Kramer said.
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