Ardmore Shipping (ASC) Soars 5.1%: Is Further Upside Left in the Stock?
Ardmore Shipping (ASC) shares ended the last trading session 5.1% higher at $11.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5% gain over the past four weeks.
The uptick was owing to the bullishness surrounding the surrounding the tanker market as both crude and product tanker rates are currently at healthy levels. The optimism surrounding the stock can be gauged from the fact that ASC shares surged 236.4% year to date.
This shipping company is expected to post quarterly earnings of $1.34 per share in its upcoming report, which represents a year-over-year change of +462.2%. Revenues are expected to be $82.81 million, up 243.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Ardmore Shipping, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ASC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Ardmore Shipping is a member of the Zacks Transportation - Shipping industry. One other stock in the same industry, SFL Corporation (SFL), finished the last trading session 1.7% higher at $9.54. SFL has returned -9.1% over the past month.
For SFL Corporation , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.23. This represents a change of -4.2% from what the company reported a year ago. SFL Corporation currently has a Zacks Rank of #3 (Hold).
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