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Global Ship Lease (GSL) Laps the Stock Market: Here's Why

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In the latest market close, Global Ship Lease (GSL - Free Report) reached $18.34, with a +0.66% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 0.39%.

The containership owner's shares have seen an increase of 0.16% over the last month, surpassing the Transportation sector's loss of 4.18% and the S&P 500's loss of 3.39%.

Market participants will be closely following the financial results of Global Ship Lease in its upcoming release. The company's earnings per share (EPS) are projected to be $2.16, reflecting a 9.24% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $163.42 million, down 5.29% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.68 per share and a revenue of $648.25 million, signifying shifts of +6.5% and +0.4%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Global Ship Lease. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Global Ship Lease is currently a Zacks Rank #4 (Sell).

In the context of valuation, Global Ship Lease is at present trading with a Forward P/E ratio of 2.1. This denotes a discount relative to the industry's average Forward P/E of 6.87.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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