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Frontline PLC (FRO) - free report >>
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Frontline PLC (FRO) - free report >>
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Frontline (FRO) Stock Jumps 12.4%: Will It Continue to Soar?
Frontline (FRO - Free Report) shares soared 12.4% in the last trading session to close at $9.81. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.2% gain over the past four weeks.
The stock surged following its announced to merge with Euronav NV (EURN - Free Report) in a $4.2 billion deal. Upon materialization of the deal, the combined group is expected to operate under the name Frontline and would continue operations in Belgium, Norway, UK, Singapore, Greece and the United States. The combined entity is expected to improve overall utilization and cost synergies.
This shipping company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -125%. Revenues are expected to be $103.31 million, down 3.6% 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 Frontline, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on FRO 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 >>>>
Frontline belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Safe Bulkers (SB - Free Report) , closed the last trading session 2.3% higher at $4.08. Over the past month, SB has returned -11.7%.
Safe Bulkers' consensus EPS estimate for the upcoming report has changed +13.8% over the past month to $0.23. Compared to the company's year-ago EPS, this represents a change of +64.3%. Safe Bulkers currently boasts a Zacks Rank of #2 (Buy).