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Ardmore Shipping (ASC) Ascends But Remains Behind Market: Some Facts to Note

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The latest trading session saw Ardmore Shipping (ASC - Free Report) ending at $12.56, denoting a +0.48% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 1.18%. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.

The shipping company's stock has climbed by 1.63% in the past month, exceeding the Transportation sector's loss of 5.84% and the S&P 500's loss of 5.17%.

Market participants will be closely following the financial results of Ardmore Shipping in its upcoming release. The company's earnings per share (EPS) are projected to be $0.41, reflecting a 73.38% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $52.96 million, indicating a 45.09% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $2.58 per share and a revenue of $253.64 million, demonstrating changes of -31.02% and -13.14%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Ardmore Shipping. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Ardmore Shipping currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note Ardmore Shipping's current valuation metrics, including its Forward P/E ratio of 4.85. This indicates a discount in contrast to its industry's Forward P/E of 6.9.

The Transportation - Shipping industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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