The Standard & Poor's 500 Index has climbed 41% in the past three years - but there's a group of stocks that is tearing past it as the outlook for their industry gets brighter.
I'm talking about liquefied natural gas (LNG) stocks. Take a look at this LNG stock chart:
The three LNG stocks listed - Cheniere Energy Inc. (NYSE: LNG), Chicago Bridge & Iron (NYSE: CBI), and Golar LNG Limited (Nasdaq: GLNG) have climbed 609%, 149%, and 132%, respectively.
Money Morning Global Energy Strategist Dr. Kent Moors first told readers about LNG's potential back in 2010. Since then, Cheniere Energy Inc. (NYSE: LNG) had climbed from $6 per share to $43 - a gain of 628%.
And there's more room to grow...
Worldwide demand for liquefied natural gas has doubled since 2000, and many expect that demand to double again by 2025.
"The bottom line here is that the liquefied natural gas (LNG) revolution is set to hand us one of the best investment opportunities of the decade - and U.S. investors just can't afford to miss out," Moors told Money Morning Executive Editor Bill Patalon in October. "And this is a stunning reversal from where the industry has been. I mean, just seven years ago, all the so-called 'experts' agreed that the U.S. would be using LNG imports to meet 15% of this country's gas needs by 2020. But now the U.S. is poised to become a hefty LNG exporter."
That's why this LNG stock chart is not a fluke. These stocks will continue to outpace broader market gains.
Here's a look at why these are three LNG stocks to buy now:
Cheniere Energy Inc. (NYSE: LNG) was the first company to receive federal approval to build a major LNG exporting facility in the United States in 2012.
It's most expansive operation is in Louisiana's Sabine Pass. That's where Cheniere expects to export 500 million cubic feet of natural gas per day by the end of 2015. The company is working on another LNG terminal project in Corpus Christi, Texas, and has just begun constructing another $12 billion processing facility.
Since the start of 2011, LNG stock price is up an incredible 609%. In the same time, the S&P 500 has posted a 43% gain.
Moors thinks that's just the tip of the iceberg for Cheniere:
"Cheniere will stand as a dramatic example of just how fast - and how much - this essentially new market is going to advance," Moors told Patalon.
Chicago Bridge & Iron (NYSE: CBI) was a stock that Peter Krauth, Money Morning's Global Resources Specialist, detailed for Money Morning readers back in June 2013.
The energy infrastructure company deals with elevated storage tanks, LNG tanks, and pressure vessels. The company is also involved with LNG liquefaction and re-gasification terminals.
A bullish sign for CBI: Warren Buffett's Berkshire Hathaway had bought 6.5 million shares of CBI in 2013's second quarter.
Since January 2011, CBI stock is up an impressive 149%.
Golar LNG Limited (Nasdaq: GLNG) is primarily involved with the shipping of liquefied natural gas. Naturally, as the demand for LNG increases, so too will the demand for shipping.
Golar has been shipping LNG for 30 years. Its fleet of 13 LNG vessels makes it one of the largest among independent operators. And it plans to add 11 new vessels to its fleet in the next several months.
GLNG has posted a gain of 132% since the start of 2011.
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