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Tenaris S.A. (TS) Gains But Lags Market: What You Should Know

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Tenaris S.A. (TS - Free Report) closed the most recent trading day at $34.79, moving +0.87% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.62%. At the same time, the Dow added 1.17%, and the tech-heavy Nasdaq gained 12.91%.

Coming into today, shares of the company had gained 4.26% in the past month. In that same time, the Industrial Products sector lost 0.8%, while the S&P 500 lost 4.54%.

Wall Street will be looking for positivity from Tenaris S.A. as it approaches its next earnings report date. On that day, Tenaris S.A. is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 95.29%. Meanwhile, our latest consensus estimate is calling for revenue of $3.94 billion, up 66.41% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.12 per share and revenue of $15.05 billion, which would represent changes of +41.34% and +27.91%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Tenaris S.A.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 15.07% higher within the past month. Tenaris S.A. is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Tenaris S.A. is holding a Forward P/E ratio of 5.63. Its industry sports an average Forward P/E of 13.98, so we one might conclude that Tenaris S.A. is trading at a discount comparatively.

Meanwhile, TS's PEG ratio is currently 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Steel - Pipe and Tube industry currently had an average PEG ratio of 1.77 as of yesterday's close.

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

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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