Back to top

Image: Bigstock

Teekay Tankers (TNK) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

Teekay Tankers (TNK - Free Report) closed the latest trading day at $64.99, indicating a -1.84% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 0.28%.

Prior to today's trading, shares of the oil and gas shipping company had lost 5.05% over the past month. This has lagged the Transportation sector's gain of 0.18% and the S&P 500's gain of 4.08% in that time.

The investment community will be paying close attention to the earnings performance of Teekay Tankers in its upcoming release. The company's earnings per share (EPS) are projected to be $3.25, reflecting a 25.8% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $197.37 million, down 21.85% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.70 per share and a revenue of $867.54 million, indicating changes of +1.59% and -2.53%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Teekay Tankers. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 a 0.17% rise in the Zacks Consensus EPS estimate. Teekay Tankers is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Teekay Tankers has a Forward P/E ratio of 4.51 right now. This expresses a discount compared to the average Forward P/E of 7.38 of its industry.

It's also important to note that TNK currently trades at a PEG ratio of 1.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Transportation - Shipping industry was having an average PEG ratio of 0.91.

The Transportation - Shipping industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.

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

To follow TNK in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


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


Teekay Tankers Ltd. (TNK) - free report >>

Published in