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Euroseas Ltd. (ESEA) Outpaces Stock Market Gains: What You Should Know

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Euroseas Ltd. (ESEA - Free Report) closed at $27.11 in the latest trading session, marking a +1.19% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.75%.

Heading into today, shares of the company had lost 24.04% over the past month, lagging the Transportation sector's gain of 0.85% and the S&P 500's loss of 0.05% in that time.

ESEA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.52, up 684.62% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.42 million, up 89.6% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.30 per share and revenue of $95.54 million. These totals would mark changes of +986.21% and +71.58%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ESEA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. ESEA is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that ESEA has a Forward P/E ratio of 4.25 right now. This represents a discount compared to its industry's average Forward P/E of 4.44.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% 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.

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