Back to top

Image: Bigstock

Costamare (CMRE) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

Costamare (CMRE - Free Report) ended the recent trading session at $9.14, demonstrating a -4.79% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.38%.

The stock of shipping company has risen by 4.46% in the past month, leading the Transportation sector's gain of 3.95% and undershooting the S&P 500's gain of 5.35%.

The upcoming earnings release of Costamare will be of great interest to investors. In that report, analysts expect Costamare to post earnings of $0.67 per share. This would mark a year-over-year decline of 12.99%.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.82 per share and revenue of $0 million, indicating changes of +2.17% and 0%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Costamare. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Costamare holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Costamare is currently exchanging hands at a Forward P/E ratio of 3.4. For comparison, its industry has an average Forward P/E of 9.34, which means Costamare 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 44, which puts it in the top 18% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Costamare Inc. (CMRE) - free report >>

Published in