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Teekay Tankers (TNK) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Teekay Tankers (TNK - Free Report) closed at $50.14, marking a -1.76% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.

Heading into today, shares of the oil and gas shipping company had gained 0.71% over the past month, outpacing the Transportation sector's loss of 0.58% and lagging the S&P 500's gain of 3.94%.

The investment community will be paying close attention to the earnings performance of Teekay Tankers in its upcoming release. It is anticipated that the company will report an EPS of $1.1, marking a 39.89% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $132.3 million, showing a 11.38% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.61 per share and a revenue of $600.77 million, demonstrating changes of -45.59% and -17.82%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Teekay Tankers. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Teekay Tankers presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Teekay Tankers currently has a Forward P/E ratio of 9.11. This denotes a discount relative to the industry average Forward P/E of 11.31.

The Transportation - Shipping industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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


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