Companies in the energy sector have crushed the broader markets this year on rising commodity prices. Thus, the shares of Tellurian (NASDAQ:TELL) and Cheniere Energy (NYSE:LNG) are well poised to continue their stellar run in the coming quarters. But which of the two stocks should one buy today? Read on to find out.In the last month, shares of companies operating in the natural gas segment have rallied powerfully. For example, shares of Tellurian (TELL) and Cheniere Energy (LNG) have surged by 10% and 16% in price, respectively, since September 15. Both stocks have also outperformed the broader markets so far this year—Tellurian is up 176% in price while Cheniere Energy has gained 75% year to date.
Natural gas prices hit a multi-year high in the U.S. recently, and increased in other global regions also, including Europe and Asia, and was a key driver of higher stock prices for TELL and LNG. The increase in prices can be attributed to a number of factors, including lower production amid the pandemic and the effect of hurricanes in the Gulf of Mexico, which hampered production.
But let’s see if the two stocks can continue their market-beating performance in the final quarter of 2021, and which of the names is the better buy currently.