IBD 50 Stocks To Buy And Watch: This Energy Infrastructure Play Is Building A Cup

New Fortress Energy was added to the IBD 50 just a week ago and this natural gas and infrastructure energy stock is already forming a cup base. Thus, RFE stock is an IBD 50 Stock to Watch.

The cup has a 52.47 buy point, and the stock has a rising relative strength line and support from its 50-day moving average.

On the MarketSmith daily chart, you'll notice this energy stock completed a consolidation base in early June but then proceeded to fall along with the entire energy sector. Then it started to rise as investors looked to New Fortress' slice of the energy industry as an integrated gas-to-power company and builder of energy infrastructure.

A rally in utilities stocks has benefited NFE, as the company crosses both the energy and utilities sectors.

Analysts surveyed by FactSet estimate the energy stock will earn 54 cents a share on sales of $489 million in the second quarter. The company is scheduled to announce Q2 earnings around Aug. 4.

New Fortress Energy Stock Rises On Profit, Sales Estimates

In the second quarter of last year, the company reported a loss of three cents a share on sales of $224 million. In other words, NFE is expected to more than double last year's Q2 sales. Wall Street has upped full-year EPS estimates again, this time with a 385% jump in 2022 to $2.28 a share, which would be an all-time record.

New Fortress Energy is ranked No. 1 in IBD's Oil & Gas Integrated group, ahead of giants like Exxon Mobil and Marathon Oil. The group is ranked No. 20 among 197 industry groups.

This energy stock has an IBD Composite Rating of 99 but a low 76 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Its RS Rating, however, has climbed steadily since Russia first invaded Ukraine to 98 now.

The New York-based company seeks to change the power market. It aims to become the world's No. 1 supplier of carbon-free power by helping customers convert to or build hydrogen-powered facilities. Liquefied natural gas is a key component of the business.

Follow Michael Molinski on Twitter @IMmolinski