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Star Bulk Carriers (SBLK) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with Star Bulk Carriers (SBLK - Free Report) standing at $21.08, reflecting a -0.47% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.2%.

Heading into today, shares of the shipping company had lost 0.84% over the past month, lagging the Transportation sector's gain of 3.7% and the S&P 500's gain of 1.54% in that time.

Investors will be eagerly watching for the performance of Star Bulk Carriers in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.68, indicating a 100% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $344.28 million, up 54.32% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.38 per share and a revenue of $1.35 billion, indicating changes of +83.7% and +41.9%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Star Bulk Carriers. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, there's been a 4.32% fall in the Zacks Consensus EPS estimate. Star Bulk Carriers is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Star Bulk Carriers is holding a Forward P/E ratio of 6.27. For comparison, its industry has an average Forward P/E of 6.92, which means Star Bulk Carriers is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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