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Euronav NV (EURN) Soars 8.9%: Is Further Upside Left in the Stock?

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Euronav NV shares ended the last trading session 8.9% higher at $14.49. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 29.1% loss over the past four weeks.

Euronav has disputed Frontline's (FRO) decision to call off the $4.2 billion merger between the two oil tanker companies. Disputing Frontline's action, Euronav is evaluating its options, including arbitration and legal action against FRO. This merger-related turmoil may have resulted in EURN's shares gaining ground on Jan 12.

This company is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +365.8%. Revenues are expected to be $362.95 million, up 325.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Euronav NV, the consensus EPS estimate for the quarter has been revised 53.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EURN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Euronav NV is a member of the Zacks Transportation - Shipping industry. One other stock in the same industry, Costamare (CMRE - Free Report) , finished the last trading session 1.6% higher at $9.99. CMRE has returned 10.3% over the past month.

For Costamare, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.88. This represents a change of -3.3% from what the company reported a year ago. Costamare currently has a Zacks Rank of #4 (Sell).


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