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Tenaris S.A. (TS) Gains But Lags Market: What You Should Know

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In the latest trading session, Tenaris S.A. (TS - Free Report) closed at $33.11, marking a +0.73% move from the previous day. The stock lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 5.02%.

Heading into today, shares of the company had gained 0.34% over the past month, outpacing the Industrial Products sector's loss of 2.04% and the S&P 500's loss of 4.61% in that time.

Investors will be hoping for strength from Tenaris S.A. as it approaches its next earnings release. The company is expected to report EPS of $1.38, up 119.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.59 billion, up 74.33% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Tenaris S.A.These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Tenaris S.A. is currently a Zacks Rank #2 (Buy).

Digging into valuation, Tenaris S.A. currently has a Forward P/E ratio of 6.35. For comparison, its industry has an average Forward P/E of 12.09, which means Tenaris S.A. is trading at a discount to the group.

It is also worth noting that TS currently has a PEG ratio of 0.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TS's industry had an average PEG ratio of 1.43 as of yesterday's close.

The Steel - Pipe and Tube industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 12, putting it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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