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Scorpio Tankers (STNG) Soars 5.6%: Is Further Upside Left in the Stock?

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Scorpio Tankers (STNG - Free Report) shares rallied 5.6% in the last trading session to close at $54.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6% gain over the past four weeks.

The uptick is attributable to the bullishness surrounding shipping stocks. Crude tanker rates, which have been high for quite some time, are likely remain steep, at least in the near term. Driven by favorable tanker rates, STNG shares have gained more than 200% in a year's time.

This shipping company is expected to post quarterly earnings of $4.61 per share in its upcoming report, which represents a year-over-year change of +683.5%. Revenues are expected to be $479.89 million, up 224.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Scorpio Tankers, the consensus EPS estimate for the quarter has been revised 9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on STNG going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Scorpio Tankers belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Ardmore Shipping (ASC - Free Report) , closed the last trading session 6% higher at $16.34. Over the past month, ASC has returned 16.3%.

Ardmore Shipping's consensus EPS estimate for the upcoming report has changed +7.8% over the past month to $1.28. Compared to the company's year-ago EPS, this represents a change of +612%. Ardmore Shipping currently boasts a Zacks Rank of #2 (Buy).


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