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Tenaris S.A. (TS) Dips More Than Broader Markets: What You Should Know

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Tenaris S.A. (TS - Free Report) closed the most recent trading day at $34.75, moving -0.34% from the previous trading session. This move lagged the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq lost 3.22%.

Prior to today's trading, shares of the company had lost 1.77% over the past month. This has lagged the Industrial Products sector's gain of 3.75% and the S&P 500's gain of 4.64% in that time.

Wall Street will be looking for positivity from Tenaris S.A. as it approaches its next earnings report date. The company is expected to report EPS of $1.38, up 119.05% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.59 billion, up 74.33% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Tenaris S.A.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.23% higher within the past month. Tenaris S.A. is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Tenaris S.A.'s current valuation metrics, including its Forward P/E ratio of 6.58. Its industry sports an average Forward P/E of 13.24, so we one might conclude that Tenaris S.A. is trading at a discount comparatively.

Also, we should mention that TS has a PEG ratio of 0.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Steel - Pipe and Tube industry currently had an average PEG ratio of 1.58 as of yesterday's close.

The Steel - Pipe and Tube industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TS in the coming trading sessions, be sure to utilize Zacks.com.


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