In the latest trading session, Teekay Tankers (TNK) closed at $40.92, marking a -0.56% move from the previous day. This change lagged the S&P 500's daily gain of 0.61%. Meanwhile, the Dow experienced a rise of 0.3%, and the technology-dominated Nasdaq saw an increase of 1.28%.
The oil and gas shipping company's shares have seen an increase of 3.52% over the last month, not keeping up with the Transportation sector's gain of 4.09% and outstripping the S&P 500's gain of 2.08%.
The investment community will be closely monitoring the performance of Teekay Tankers in its forthcoming earnings report. The company is forecasted to report an EPS of $1.81, showcasing a 36.93% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $158.26 million, indicating a 18.62% decrease compared to the same quarter of the previous year.
Any recent changes to analyst estimates for Teekay Tankers should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Teekay Tankers is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Teekay Tankers has a Forward P/E ratio of 5.4 right now. Its industry sports an average Forward P/E of 7.39, so one might conclude that Teekay Tankers is trading at a discount comparatively.
Also, we should mention that TNK has a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Transportation - Shipping industry held an average PEG ratio of 0.56.
The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 249, putting it in the bottom 1% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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