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Tenaris S.A. (TS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Tenaris S.A. (TS - Free Report) closed at $34.49, marking a +1.98% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 7.5%.

Prior to today's trading, shares of the company had gained 3.93% over the past month. This has outpaced the Industrial Products sector's gain of 2.5% and the S&P 500's loss of 0.94% in that time.

Tenaris S.A. will be looking to display strength as it nears its next earnings release. On that day, Tenaris S.A. is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 119.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.59 billion, up 74.33% from the year-ago period.

Any recent changes to analyst estimates for Tenaris S.A. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Tenaris S.A. currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Tenaris S.A. is holding a Forward P/E ratio of 6.53. Its industry sports an average Forward P/E of 12.69, so we one might conclude that Tenaris S.A. is trading at a discount comparatively.

Also, we should mention that TS 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. The Steel - Pipe and Tube was holding an average PEG ratio of 1.49 at yesterday's closing price.

The Steel - Pipe and Tube industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.

To follow TS in the coming trading sessions, be sure to utilize Zacks.com.


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