Scorpio Tankers (STNG) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Scorpio Tankers (STNG) closed at $51.07, marking a -1.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.
Coming into today, shares of the shipping company had gained 0.33% in the past month. In that same time, the Transportation sector lost 2.92%, while the S&P 500 gained 1.85%.
Investors will be hoping for strength from Scorpio Tankers as it approaches its next earnings release. On that day, Scorpio Tankers is projected to report earnings of $1.61 per share, which would represent a year-over-year decline of 62.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $282.41 million, down 38.11% from the year-ago period.
STNG's full-year Zacks Consensus Estimates are calling for earnings of $9.19 per share and revenue of $1.3 billion. These results would represent year-over-year changes of -19.1% and -11.51%, respectively.
Investors might also notice recent changes to analyst estimates for Scorpio Tankers. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Scorpio Tankers is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Scorpio Tankers's current valuation metrics, including its Forward P/E ratio of 5.64. Its industry sports an average Forward P/E of 6.91, so we one might conclude that Scorpio Tankers is trading at a discount comparatively.
We can also see that STNG currently has a PEG ratio of 0.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Shipping stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
