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Frontline (FRO) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Frontline (FRO) closed at $8.35, marking a +0.24% move from the previous day. This change lagged the S&P 500's 0.65% gain on the day. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.9%.

Heading into today, shares of the shipping company had lost 32.82% over the past month, lagging the Transportation sector's loss of 0.62% and the S&P 500's gain of 2.97% in that time.

Wall Street will be looking for positivity from FRO as it approaches its next earnings report date. In that report, analysts expect FRO to post earnings of $0.51 per share. This would mark year-over-year growth of 240%.

Any recent changes to analyst estimates for FRO should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 8.66% higher within the past month. FRO is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, FRO is holding a Forward P/E ratio of 4.58. For comparison, its industry has an average Forward P/E of 6.39, which means FRO is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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