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Ardmore Shipping (ASC) Stock Sinks As Market Gains: Here's Why

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The latest trading session saw Ardmore Shipping (ASC - Free Report) ending at $16.39, denoting a -0.06% adjustment from its last day's close. This change lagged the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 1.25%.

Shares of the shipping company witnessed a gain of 2.31% over the previous month, beating the performance of the Transportation sector with its gain of 0.81% and underperforming the S&P 500's gain of 3.56%.

Market participants will be closely following the financial results of Ardmore Shipping in its upcoming release. On that day, Ardmore Shipping is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 25.96%. Alongside, our most recent consensus estimate is anticipating revenue of $68.13 million, indicating a 16.58% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.60 per share and a revenue of $249.15 million, indicating changes of -4.06% and -5.65%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Ardmore Shipping. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Ardmore Shipping is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Ardmore Shipping is currently exchanging hands at a Forward P/E ratio of 6.32. This valuation marks a discount compared to its industry's average Forward P/E of 8.22.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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 ASC in the coming trading sessions, be sure to utilize Zacks.com.


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