Why Frontline (FRO) Could Be Positioned for a Surge?


Frontline Ltd. (FRO), an owner and operator of oil tankers, could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on FRO’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Frontline could be a solid choice for investors.

Current Quarter Estimates for FRO

In the past 30 days, 3 estimates have gone higher for Frontline while none of the estimates moved lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 36 cents a share 30 days ago, to loss of 25 cents today, a move of 30.6%.

Current Year Estimates for (FRO)

Meanwhile, Frontline’s current year figures are also looking quite promising, with 1 estimate moving higher in the past month, compared to no downward revision. The consensus estimate trend has also seen a boost for this time frame, narrowing from a loss of $1.68 per share 30 days ago to loss of $1.46 per share today, an increase of 13.1%.

Bottom Line

The stock has also started to move higher lately, adding more than 29.1% over the past four weeks suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future.

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