Frontline (FRO) closed the most recent trading day at $7.92, moving +1.8% from the previous trading session. This change outpaced the S&P 500's 0.65% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.27%.
Heading into today, shares of the shipping company had gained 9.42% over the past month, outpacing the Transportation sector's gain of 9.04% and the S&P 500's gain of 7.76% in that time.
FRO will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.98, up 4800% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $315.29 million, up 206.88% from the year-ago period.
FRO's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $1.17 billion. These results would represent year-over-year changes of +40.24% and +109.11%, respectively.
Investors should also note any recent changes to analyst estimates for FRO. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 50.64% lower. FRO is currently a Zacks Rank #3 (Hold).
Investors should also note FRO's current valuation metrics, including its Forward P/E ratio of 6.77. For comparison, its industry has an average Forward P/E of 7.16, 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 232, which puts it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FRO in the coming trading sessions, be sure to utilize Zacks.com.
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