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Frontline (FRO) Gains But Lags Market: What You Should Know

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Frontline (FRO - Free Report) closed the most recent trading day at $15.72, moving +0.13% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 11.47%.

Heading into today, shares of the shipping company had gained 4.32% over the past month, lagging the Transportation sector's gain of 7.83% and outpacing the S&P 500's gain of 3.34% in that time.

Wall Street will be looking for positivity from Frontline as it approaches its next earnings report date. The company is expected to report EPS of $0.87, up 314.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $347.58 million, up 118.34% from the year-ago period.

FRO's full-year Zacks Consensus Estimates are calling for earnings of $2.78 per share and revenue of $1.14 billion. These results would represent year-over-year changes of +75.95% and +38.55%, respectively.

Any recent changes to analyst estimates for Frontline should also be noted by investors. Recent revisions tend to reflect the latest 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.8% lower. Frontline is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Frontline has a Forward P/E ratio of 5.66 right now. For comparison, its industry has an average Forward P/E of 5.94, which means Frontline is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 204, which puts it in the bottom 20% 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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