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Scorpio Tankers (STNG) Moves 9.2% Higher: Will This Strength Last?

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Scorpio Tankers (STNG - Free Report) shares rallied 9.2% in the last trading session to close at $45.55. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.2% gain over the past four weeks.

Shares of Scorpio Tankers have performed well of late, gaining 11% in the past month. The recent spike in demand for petroleum tankers due to a pause in production from major Middle Eastern exporters has served STNG well. 

 

This shipping company is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of -71.9%. Revenues are expected to be $215.14 million, down 42.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Scorpio Tankers, the consensus EPS estimate for the quarter has been revised 38.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on STNG going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Scorpio Tankers is part of the Zacks Transportation - Shipping industry. Okeanis Eco Tankers Corp. (ECO - Free Report) , another stock in the same industry, closed the last trading session 2% higher at $23.45. ECO has returned 4.3% in the past month.

Okeanis Eco Tankers Corp.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.33. Compared to the company's year-ago EPS, this represents a change of -73.2%. Okeanis Eco Tankers Corp. currently boasts a Zacks Rank of #4 (Sell).


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