Scorpio Tankers (STNG) Gains As Market Dips: What You Should Know
Scorpio Tankers (STNG) closed at $56.29 in the latest trading session, marking a +1.17% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.
Coming into today, shares of the shipping company had lost 10% in the past month. In that same time, the Transportation sector lost 3.85%, while the S&P 500 gained 0.07%.
Wall Street will be looking for positivity from Scorpio Tankers as it approaches its next earnings report date. In that report, analysts expect Scorpio Tankers to post earnings of $3.39 per share. This would mark year-over-year growth of 1355.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $371.17 million, up 115.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.23 per share and revenue of $1.38 billion, which would represent changes of -9.95% and -6.08%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Scorpio Tankers. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 13.54% higher. Scorpio Tankers is currently a Zacks Rank #3 (Hold).
In terms of valuation, Scorpio Tankers is currently trading at a Forward P/E ratio of 5.44. Its industry sports an average Forward P/E of 6.12, so we one might conclude that Scorpio Tankers is trading at a discount comparatively.
It is also worth noting that STNG currently has a PEG ratio of 0.16. 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. The Transportation - Shipping was holding an average PEG ratio of 1.21 at yesterday's closing price.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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