Scorpio Tankers’ (STNG) shares closed at $49.93 in the last trading session, 5.9% more than their previous session. This was due to an impressive volume and a greater-than-average amount of shares being traded in the session. This is compared to the stock’s 7.1% decline over the past four week.
The increase in shipping stocks’ prices is responsible for the rise. Crude tanker rates have been quite high for some time and will likely continue to be steep in the short term. As can be seen, versatile Suezmax tankers and Aframax tankers earn more than $100,000/day due to favorable tanker rates. Stocks like Scorpio Tankers will benefit from this bullish outlook. It is also admirable that efforts are being made to upgrade its fleet. STNG is looking good with an increase in voyage revenues and a rise in passengers. STNG shares rose by over 300% within a year.
In its upcoming report, this shipping company expects to report quarterly earnings at $4.75 per share. This represents an increase of +701.3% year-overyear. Revenues are expected at $482.4 Million, an increase of 226.2% over the previous quarter.
While revenue growth and earnings expectations are a great indicator of potential strength, empirical research has shown that revisions to earnings estimates strongly correlate with stock price movements in the near future.
Scorpio Tankers has revised its consensus EPS estimate for the third quarter 105.5% over the past 30 days to the current level. Positive earnings estimate revisions are usually associated with price appreciation. Keep an eye on STNG moving forward to see if the recent jump could lead to more strength.
The stock currently carries a Zacks Rank 1, which is a Strong Buy. You can view the full report here the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Scorpio Tankers is a Zacks Transportation-Ship industry member. One other stock in the same industry, Genco Shipping & Trading (GNK), finished the last trading session 1% higher at $15.01. GNK returned 4.6% in the last month.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
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