Why Scorpio Tankers (STNG) Outpaced the Stock Market Today
Scorpio Tankers (STNG) closed at $53.32 in the latest trading session, marking a +1.18% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.43%. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.71%.
Heading into today, shares of the shipping company had gained 2.65% over the past month, outpacing the Transportation sector's loss of 2.15% and the S&P 500's loss of 2.1% in that time.
The upcoming earnings release of Scorpio Tankers will be of great interest to investors. The company is predicted to post an EPS of $1.62, indicating a 62.24% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $280.94 million, down 38.43% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.23 per share and revenue of $1.3 billion, which would represent changes of -18.75% and -11.56%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Scorpio Tankers. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.41% higher within the past month. Scorpio Tankers is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Scorpio Tankers has a Forward P/E ratio of 5.71 right now. For comparison, its industry has an average Forward P/E of 7.25, which means Scorpio Tankers is trading at a discount to the group.
Meanwhile, STNG's PEG ratio is currently 0.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. STNG's industry had an average PEG ratio of 0.98 as of yesterday's close.
The Transportation - Shipping industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 43% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
