Scorpio Tankers (STNG) Stock Sinks As Market Gains: Here's Why
In the latest trading session, Scorpio Tankers (STNG) closed at $65.11, marking a -0.78% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 1.06%, and the technology-centric Nasdaq increased by 1.7%.
Heading into today, shares of the shipping company had gained 2.58% over the past month, outpacing the Transportation sector's loss of 3.36% and the S&P 500's gain of 0.94% in that time.
The investment community will be closely monitoring the performance of Scorpio Tankers in its forthcoming earnings report. The company's upcoming EPS is projected at $2.65, signifying a 37.5% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $326.01 million, down 29.17% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Scorpio Tankers. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. As of now, Scorpio Tankers holds a Zacks Rank of #3 (Hold).
Investors should also note Scorpio Tankers's current valuation metrics, including its Forward P/E ratio of 6.61. Its industry sports an average Forward P/E of 8.37, so one might conclude that Scorpio Tankers is trading at a discount comparatively.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
