In the latest trading session, Scorpio Tankers (STNG) closed at $12.99, marking a +1.88% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 0.59%.
Heading into today, shares of the shipping company had lost 19% over the past month, lagging the Transportation sector's gain of 2.63% and the S&P 500's gain of 5.26% in that time.
STNG will be looking to display strength as it nears its next earnings release. On that day, STNG is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 482.26%. Our most recent consensus estimate is calling for quarterly revenue of $402.80 million, up 169.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.48 per share and revenue of $1.31 billion, which would represent changes of +576.6% and +88.02%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for STNG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 27.91% lower. STNG is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note STNG's current valuation metrics, including its Forward P/E ratio of 2.85. This represents a discount compared to its industry's average Forward P/E of 4.63.
Investors should also note that STNG has a PEG ratio of 0.07 right now. 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 1.23 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 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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