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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 $31.13, moving +0.78% from the previous trading session. This change lagged the S&P 500's 1.68% gain on the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, lost 1.7%.

Coming into today, shares of the company had lost 9.63% in the past month. In that same time, the Industrial Products sector lost 5.79%, while the S&P 500 lost 6.68%.

Tenaris S.A. will be looking to display strength as it nears its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $3.94 billion, up 66.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.12 per share and revenue of $15.05 billion. These totals would mark changes of +41.34% and +27.91%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Tenaris S.A.These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 15.07% higher within the past month. Tenaris S.A. currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Tenaris S.A. is holding a Forward P/E ratio of 5.05. This represents a discount compared to its industry's average Forward P/E of 12.54.

We can also see that TS currently has a PEG ratio of 2.46. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Steel - Pipe and Tube industry currently had an average PEG ratio of 1.63 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 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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