Have you been paying attention to shares of Seaspan ? Shares have been on the move with the stock up 5.8% over the past month. The stock hit a new 52-week high of $11.8 in the previous session. Seaspan has gained 50.6% since the start of the year compared to the 19.9% move for the Zacks Transportation sector and the 38.6% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2019, Seaspan reported EPS of $0.21 versus consensus estimate of $0.18.
For the current fiscal year, Seaspan is expected to post earnings of $0.79 per share on $1.13 billion in revenues. This represents a -35.25% change in EPS on a 2.65% change in revenues. For the next fiscal year, the company is expected to earn $0.87 per share on $1.15 billion in revenues. This represents a year-over-year change of 10.38% and 2%, respectively.
Valuation Metrics
Seaspan may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Seaspan has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 3.9X versus its peer group's average of 4.4X. Additionally, the stock has a PEG ratio of 1.16. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Seaspan currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Seaspan passes the test. Thus, it seems as though Seaspan shares could still be poised for more gains ahead.
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Seaspan (SSW) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Seaspan ? Shares have been on the move with the stock up 5.8% over the past month. The stock hit a new 52-week high of $11.8 in the previous session. Seaspan has gained 50.6% since the start of the year compared to the 19.9% move for the Zacks Transportation sector and the 38.6% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2019, Seaspan reported EPS of $0.21 versus consensus estimate of $0.18.
For the current fiscal year, Seaspan is expected to post earnings of $0.79 per share on $1.13 billion in revenues. This represents a -35.25% change in EPS on a 2.65% change in revenues. For the next fiscal year, the company is expected to earn $0.87 per share on $1.15 billion in revenues. This represents a year-over-year change of 10.38% and 2%, respectively.
Valuation Metrics
Seaspan may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Seaspan has a Value Score of B. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 14.9X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 3.9X versus its peer group's average of 4.4X. Additionally, the stock has a PEG ratio of 1.16. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Seaspan currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Seaspan passes the test. Thus, it seems as though Seaspan shares could still be poised for more gains ahead.