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Zacks Investment Ideas feature highlights: Teekay Tankers, Scorpio Tankers and International Seaways

For Immediate Release

Chicago, IL – January 18, 2023 – Today, Zacks Investment Ideas feature highlights Teekay Tankers Ltd. TNK, Scorpio Tankers STNG and International Seaways INSW.

3 Top Picks from a Hot Transportation Industry

Stocks have gotten off to a nice start in 2023, certainly a welcomed development following a challenging 2022.

Signs of easing inflation paired with some better-than-expected earnings results from big banks  have both helped keep the market afloat.

And with earnings season kicking into higher gear, investors will have plenty of quarterly releases to dive into. A few highly-anticipated quarterly prints this week will come from elsewhere.

With the calendar flipped and some investors looking for new stocks, it's beneficial to remember the importance of targeting sectors with bright outlooks.

That's precisely what the Zacks – Transportation sector has displayed, currently ranked #1 out of all 16 Zacks sectors thanks to positive earnings estimate revisions.

Three stocks from the realm – Teekay Tankers Ltd., Scorpio Tankers and International Seaways – could all be considerations for those looking to tap into the sector's favorable outlook.

Let's take a closer look at each one.

Scorpio Tankers

Scorpio Tankers Inc. provides marine transportation of petroleum products worldwide for integrated oil companies, oil traders, and other customers. The company sports a Zacks Rank #1 (Strong Buy).

STNG hasn't had any issues exceeding quarterly estimates, surpassing EPS and revenue expectations in four consecutive quarters. In its latest release, STNG registered a 12.6% earnings beat paired with a 9% revenue surprise.

International Seaways

International Seaways is a tanker company providing energy transportation services for crude oil and petroleum products.

Analysts have raised their earnings outlook across all timeframes over the last several months, landing INSW into a Zacks Rank #2 (Buy).

In addition, the company does pay a dividend, currently yielding a modest 1.3%. While the yield is lower than its Zacks sector average, the company's 30% five-year annualized dividend growth rate helps pick up the slack.

For the cherry on top, International Seaways has a strong growth trajectory; the Zacks Consensus EPS Estimate of $7.20 for its current fiscal year (FY22) indicates a sizable 421% Y/Y change. And in FY23, the company's earnings are expected to grow a further 25%.

Teekay Tankers Ltd.

Teekay Tankers Ltd. was formed by Teekay Corporation to provide international marine transportation of crude oil. Currently, TNK boasts a Zacks Rank #1 (Strong Buy).

It's hard to ignore the company's growth profile, with earnings forecasted to soar more than 240% in its current fiscal year (FY22) and a further 140% in FY23.

The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 160% in FY22 and 92% in FY23.

And with such strong projected growth, TNK shares aren't expensive; the company's shares trade at a forward price-to-sales ratio of 0.9X, precisely in line with the five-year median and nicely beneath its Zacks sector average.

Bottom Line

Targeting stocks in sectors witnessing rising earnings estimate revisions is an excellent way for investors to find themselves in favorable market trends, as these companies' near-term business outlooks have recently turned fruitful.

And all three stocks above – Teekay Tankers Ltd., Scorpio Tankers and International Seaways – could be considerations for investors looking to tap into the favorable outlook for the Zacks Transportation sector.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report

Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report

International Seaways Inc. (INSW) : Free Stock Analysis Report

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