Back to top

Image: Bigstock

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

Read MoreHide Full Article

Tenaris S.A. (TS - Free Report) closed at $27.89 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 0.61%.

Heading into today, shares of the company had gained 7.42% over the past month, lagging the Industrial Products sector's gain of 8.46% and outpacing the S&P 500's gain of 6.1% in that time.

Tenaris S.A. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.64, up 51.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.78 billion, up 35.04% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.17 per share and revenue of $14.96 billion. These totals would mark changes of +42.49% and +27.16%, respectively, from last year.

Any recent changes to analyst estimates for Tenaris S.A. should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Tenaris S.A. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Tenaris S.A. is currently trading at a Forward P/E ratio of 4.55. This represents a discount compared to its industry's average Forward P/E of 12.33.

Meanwhile, TS's PEG ratio is currently 2.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Steel - Pipe and Tube was holding an average PEG ratio of 1.91 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 116, putting it in the top 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Tenaris S.A. (TS) - free report >>

Published in