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Here's Why Teekay Tankers (TNK) Gained But Lagged the Market Today

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The most recent trading session ended with Teekay Tankers (TNK - Free Report) standing at $38.98, reflecting a +1.33% shift from the previouse trading day's closing. This change lagged the S&P 500's 1.77% gain on the day. Meanwhile, the Dow experienced a rise of 1.42%, and the technology-dominated Nasdaq saw an increase of 2.28%.

Prior to today's trading, shares of the oil and gas shipping company had lost 4.11% over the past month. This has lagged the Transportation sector's loss of 3.93% and was narrower than the S&P 500's loss of 5.73% in that time.

The upcoming earnings release of Teekay Tankers will be of great interest to investors. On that day, Teekay Tankers is projected to report earnings of $1.34 per share, which would represent a year-over-year decline of 65.28%.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.74 per share and a revenue of $662.04 million, representing changes of -34.63% and -9.44%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Teekay Tankers. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.4% lower. Teekay Tankers is currently sporting a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Teekay Tankers is at present trading with a Forward P/E ratio of 5.71. This represents a discount compared to its industry's average Forward P/E of 9.18.

The Transportation - Shipping industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 24% 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.


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