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Frontline (FRO) Dips More Than Broader Market: What You Should Know

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In the latest market close, Frontline (FRO - Free Report) reached $20.93, with a -0.9% movement compared to the previous day. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.56%.

Shares of the shipping company witnessed a gain of 10.06% over the previous month, beating the performance of the Transportation sector with its gain of 2.57% and the S&P 500's gain of 2.56%.

The investment community will be closely monitoring the performance of Frontline in its forthcoming earnings report. On that day, Frontline is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 42.27%. In the meantime, our current consensus estimate forecasts the revenue to be $276.26 million, indicating a 21.71% decline compared to the corresponding quarter of the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Frontline. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 3.28% fall in the Zacks Consensus EPS estimate. Frontline is currently a Zacks Rank #3 (Hold).

With respect to valuation, Frontline is currently being traded at a Forward P/E ratio of 6.51. Its industry sports an average Forward P/E of 7.11, so one might conclude that Frontline is trading at a discount comparatively.

The Transportation - Shipping industry is part of the Transportation sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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