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Zacks Investment Ideas feature highlights: International Seaways
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For Immediate Release
Chicago, IL – October 21, 2022 – Today, Zacks Investment Ideas feature highlights International Seaways, Inc. (INSW - Free Report) .
Bullish Price Movement Suggests Clear Waters for Shipping Stocks
Despite shipping rates coming down from their peak, companies within the shipping industry have continued to flourish. While an absence of high congestion has established a path to lower rates, any changes in China’s Covid-zero policy or possible ceasefire agreements in the Russia-Ukraine war have the potential to lift rates again.
And as we saw in recent weeks with the release of September’s CPI data, inflation is going to linger. While the Fed has gone into overdrive with rate hikes, even committee officials have acknowledged that they’ve done little to stem a 40-year high in inflation. That’s good news for shipping companies, as they’re able to charge higher rates and pass along the higher costs of doing business.
The Zacks Transportation – Shipping industry is currently ranked in the top 16% out of over 250 industries. This group has widely outperformed the market with at 29% return year-to-date.
Why has this group continued to shine despite lower shipping rates? Two reasons – accelerated earnings growth and relative undervaluation.Historical research has illustrated that roughly half of a stock’s future price movement can be attributed to its industry group. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. By focusing on stocks within the top industries, we can provide a constant ‘tailwind’ to our investing success.
The industry also boasts a large number of highly ranked stocks per our Zacks Rank, serving as another confirmation signal that this group is a great place to be. Let’s take a look at a Zacks Rank #1 (Strong Buy) stock that is outperforming the market and recently hit new 52-week highs, all while the major averages hover in deep correction.
International Seaways, Inc.
International Seaways owns and operates a fleet of over 80 oceangoing vessels and is engaged in the global transportation of crude oil and petroleum products. INSW serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities.
INSW has surpassed earnings estimates in three of the past four quarters, delivering a trailing four-quarter average earnings surprise of 8.31%. The stock has responded well and has advanced nearly 170% this year.
Analysts have increased their EPS estimates for INSW across the board. For the third quarter, estimates have been revised upward by 13.85% in the past 30 days. The Q3 Zacks Consensus EPS Estimate is now $2.22 per share, translating to astonishing potential growth of 452.37% relative to the same quarter last year.
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) identifies companies that have recently witnessed positive earnings estimate revision activity. The idea is that this more recent information can serve as a better predictor of the future, giving investors a leg up during earnings season. When combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks produced a positive surprise 70% of the time according to our 10-year backtest.
With an Earnings ESP +3.34% and a Zacks Rank #1 (Strong Buy) rating, another earnings beat may be in the cards for INSW investors when the company reports Q3 results on November 8th. Make sure to keep an eye on INSW as well as the shipping industry.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: International Seaways
For Immediate Release
Chicago, IL – October 21, 2022 – Today, Zacks Investment Ideas feature highlights International Seaways, Inc. (INSW - Free Report) .
Bullish Price Movement Suggests Clear Waters for Shipping Stocks
Despite shipping rates coming down from their peak, companies within the shipping industry have continued to flourish. While an absence of high congestion has established a path to lower rates, any changes in China’s Covid-zero policy or possible ceasefire agreements in the Russia-Ukraine war have the potential to lift rates again.
And as we saw in recent weeks with the release of September’s CPI data, inflation is going to linger. While the Fed has gone into overdrive with rate hikes, even committee officials have acknowledged that they’ve done little to stem a 40-year high in inflation. That’s good news for shipping companies, as they’re able to charge higher rates and pass along the higher costs of doing business.
The Zacks Transportation – Shipping industry is currently ranked in the top 16% out of over 250 industries. This group has widely outperformed the market with at 29% return year-to-date.
Why has this group continued to shine despite lower shipping rates? Two reasons – accelerated earnings growth and relative undervaluation.Historical research has illustrated that roughly half of a stock’s future price movement can be attributed to its industry group. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. By focusing on stocks within the top industries, we can provide a constant ‘tailwind’ to our investing success.
The industry also boasts a large number of highly ranked stocks per our Zacks Rank, serving as another confirmation signal that this group is a great place to be. Let’s take a look at a Zacks Rank #1 (Strong Buy) stock that is outperforming the market and recently hit new 52-week highs, all while the major averages hover in deep correction.
International Seaways, Inc.
International Seaways owns and operates a fleet of over 80 oceangoing vessels and is engaged in the global transportation of crude oil and petroleum products. INSW serves independent and state-owned oil companies, oil traders, refinery operators, and international government entities.
INSW has surpassed earnings estimates in three of the past four quarters, delivering a trailing four-quarter average earnings surprise of 8.31%. The stock has responded well and has advanced nearly 170% this year.
Analysts have increased their EPS estimates for INSW across the board. For the third quarter, estimates have been revised upward by 13.85% in the past 30 days. The Q3 Zacks Consensus EPS Estimate is now $2.22 per share, translating to astonishing potential growth of 452.37% relative to the same quarter last year.
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) identifies companies that have recently witnessed positive earnings estimate revision activity. The idea is that this more recent information can serve as a better predictor of the future, giving investors a leg up during earnings season. When combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks produced a positive surprise 70% of the time according to our 10-year backtest.
With an Earnings ESP +3.34% and a Zacks Rank #1 (Strong Buy) rating, another earnings beat may be in the cards for INSW investors when the company reports Q3 results on November 8th. Make sure to keep an eye on INSW as well as the shipping industry.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.