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Star Bulk Carriers (SBLK) Stock Sinks As Market Gains: What You Should Know

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Star Bulk Carriers (SBLK - Free Report) closed at $22.81 in the latest trading session, marking a -1.08% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the shipping company had gained 23.51% over the past month. This has outpaced the Transportation sector's gain of 0.32% and the S&P 500's gain of 0.12% in that time.

Star Bulk Carriers will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.60, up 766.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $478.17 million, up 157.05% from the year-ago period.

Any recent changes to analyst estimates for Star Bulk Carriers should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Star Bulk Carriers is currently a Zacks Rank #4 (Sell).

Looking at its valuation, Star Bulk Carriers is holding a Forward P/E ratio of 3.62. For comparison, its industry has an average Forward P/E of 4.01, which means Star Bulk Carriers is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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