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Teekay Tankers (TNK) Stock Drops Despite Market Gains: Important Facts to Note

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Teekay Tankers (TNK - Free Report) closed the most recent trading day at $58.25, moving -0.1% from the previous trading session. This change lagged the S&P 500's 0.42% gain on the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

The oil and gas shipping company's stock has climbed by 2.51% in the past month, falling short of the Transportation sector's gain of 3.57% and outpacing the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of Teekay Tankers in its forthcoming earnings report. The company is predicted to post an EPS of $2.52, indicating a 14.03% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $162.53 million, down 5.82% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $13.33 per share and a revenue of $805.05 million, demonstrating changes of -7.88% and -9.55%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teekay Tankers. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Teekay Tankers is carrying a Zacks Rank of #4 (Sell).

In the context of valuation, Teekay Tankers is at present trading with a Forward P/E ratio of 4.37. This represents a discount compared to its industry's average Forward P/E of 8.04.

Meanwhile, TNK's PEG ratio is currently 1.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Shipping stocks are, on average, holding a PEG ratio of 0.77 based on yesterday's closing prices.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 138, which puts it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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