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Tenaris S.A. (TS) Gains As Market Dips: What You Should Know

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In the latest trading session, Tenaris S.A. (TS - Free Report) closed at $28.82, marking a +1.44% move from the previous day. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.

Prior to today's trading, shares of the company had lost 16.49% over the past month. This has lagged the Industrial Products sector's loss of 5.06% and the S&P 500's gain of 0.07% in that time.

Investors will be hoping for strength from Tenaris S.A. as it approaches its next earnings release. In that report, analysts expect Tenaris S.A. to post earnings of $1.66 per share. This would mark 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.

TS's full-year Zacks Consensus Estimates are calling for earnings of $6.12 per share and revenue of $15.05 billion. These results would represent year-over-year changes of +41.34% and +27.91%, respectively.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Tenaris S.A. is currently a Zacks Rank #1 (Strong Buy).

Investors should also note Tenaris S.A.'s current valuation metrics, including its Forward P/E ratio of 4.64. Its industry sports an average Forward P/E of 12.86, so we one might conclude that Tenaris S.A. is trading at a discount comparatively.

We can also see that TS currently has a PEG ratio of 2.26. 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 was holding an average PEG ratio of 1.67 at yesterday's closing price.

The Steel - Pipe and Tube industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 10, putting it in the top 4% 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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