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DHT Holdings (DHT) Surges 6.0%: Is This an Indication of Further Gains?

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DHT Holdings (DHT - Free Report) shares soared 6% in the last trading session to close at $8.80. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.7% loss over the past four weeks.

DHT shares gained following a bullish business update provided by the management. Management expects fourth-quarter 2022 charter equivalent or TCE earnings for its fleet to be $56,900 per day . The forecast on TCE earnings comprises $36,100 per day for VLCCs (very large crude carriers) on time-charter, and $63,800 per day for VLCCs operating in the spot market. Management of the shipping company also stated that so far in the first quarter of the current year, 37% of the available VLCC spot days have been booked at an average rate of $70,000 per day on a discharge-to-discharge basis, with 53% of the available VLCC days, spot and time-charter days combined, being booked at an average rate of $52,000 per day.

This independent oil tanker company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +900%. Revenues are expected to be $122.58 million, up 149.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For DHT Holdings, 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 DHT going forward to see if this recent jump can turn into more strength down the road.

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

DHT Holdings belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, GasLog Partners LP , closed the last trading session 8.7% higher at $6.72. Over the past month, GLOP has returned -13.8%.

GasLog Partners LP's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.72. Compared to the company's year-ago EPS, this represents a change of +60%. GasLog Partners LP currently boasts a Zacks Rank of #3 (Hold).


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