Scorpio Tankers (STNG) Gains As Market Dips: What You Should Know
Scorpio Tankers (STNG) closed at $52.46 in the latest trading session, marking a +0.15% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.23%. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.09%.
Heading into today, shares of the shipping company had gained 3.07% over the past month, outpacing the Transportation sector's loss of 3.44% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Scorpio Tankers as it approaches its next earnings report date. 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, our latest consensus estimate is calling for revenue of $282.41 million, down 38.11% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.19 per share and revenue of $1.3 billion. These totals would mark changes of -19.1% and -11.51%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Scorpio Tankers. 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. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Scorpio Tankers currently has a Zacks Rank of #3 (Hold).
Investors should also note Scorpio Tankers's current valuation metrics, including its Forward P/E ratio of 5.7. Its industry sports an average Forward P/E of 6.85, so we one might conclude that Scorpio Tankers is trading at a discount comparatively.
Meanwhile, STNG's PEG ratio is currently 0.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Shipping was holding an average PEG ratio of 0.96 at yesterday's closing price.
The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
