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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 the most recent trading day at $18.37, moving -0.49% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 10.36%.

Heading into today, shares of the shipping company had lost 1.6% over the past month, outpacing the Transportation sector's loss of 6.56% and the S&P 500's loss of 5.98% in that time.

Star Bulk Carriers will be looking to display strength as it nears its next earnings release. On that day, Star Bulk Carriers is projected to report earnings of $0.97 per share, which would represent a year-over-year decline of 67.23%. Our most recent consensus estimate is calling for quarterly revenue of $301.15 million, down 39.75% 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 10.64% lower. Star Bulk Carriers is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Star Bulk Carriers's current valuation metrics, including its Forward P/E ratio of 5.27. For comparison, its industry has an average Forward P/E of 5.08, which means Star Bulk Carriers is trading at a premium to the group.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% 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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