Euroseas Ltd. (ESEA) Soars 6.3%: Is Further Upside Left in the Stock?
Euroseas Ltd. (ESEA) shares soared 6.3% in the last trading session to close at $38.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 31.1% gain over the past four weeks.
The uptick was owing to the favorable sentiment surrounding shipping stocks with tensions in the Red Sea boosting the stock price of stocks in this industry. The fact that lease rates have remained impressive, despite the availability of new containerships, bodes well for ESEA.
This company is expected to post quarterly earnings of $3.85 per share in its upcoming report, which represents a year-over-year change of +54%. Revenues are expected to be $50.97 million, up 14.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Euroseas Ltd., 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 ESEA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Euroseas Ltd. is part of the Zacks Transportation - Shipping industry. Scorpio Tankers (STNG), another stock in the same industry, closed the last trading session 0.5% lower at $62.86. STNG has returned 17.2% in the past month.
Scorpio Tankers' consensus EPS estimate for the upcoming report has changed -4.1% over the past month to $2.63. Compared to the company's year-ago EPS, this represents a change of -38%. Scorpio Tankers currently boasts a Zacks Rank of #3 (Hold).
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