Scorpio Tankers (STNG) closed the most recent trading day at $13.26, moving +1.69% from the previous trading session. This change outpaced the S&P 500's 1.23% loss on the day. Meanwhile, the Dow lost 1.31%, and the Nasdaq, a tech-heavy index, lost 2.29%.
Prior to today's trading, shares of the shipping company had lost 5.98% over the past month. This has lagged the Transportation sector's gain of 6.03% and the S&P 500's gain of 5.2% in that time.
STNG will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020. In that report, analysts expect STNG to post earnings of $2.37 per share. This would mark year-over-year growth of 482.26%. Meanwhile, our latest consensus estimate is calling for revenue of $402.80 million, up 169.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.30 per share and revenue of $1.30 billion. These totals would mark changes of +557.45% and +86.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for STNG. 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. 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, 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 3.87% lower within the past month. STNG is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, STNG currently has a Forward P/E ratio of 3.03. For comparison, its industry has an average Forward P/E of 5.02, which means STNG is trading at a discount to the group.
It is also worth noting that STNG currently has a PEG ratio of 0.07. 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. STNG's industry had an average PEG ratio of 1.26 as of yesterday's close.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 10% 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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