Frontline (FRO) Stock Sinks As Market Gains: What You Should Know
Frontline (FRO) closed the most recent trading day at $7.93, moving -0.88% from the previous trading session. This change lagged the S&P 500's 0.72% gain on the day. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 1.47%.
Heading into today, shares of the shipping company had gained 14.78% over the past month, outpacing the Transportation sector's gain of 7.98% and the S&P 500's gain of 5.85% in that time.
FRO will be looking to display strength as it nears its next earnings release. In that report, analysts expect FRO to post earnings of $0.98 per share. This would mark year-over-year growth of 4800%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $315.29 million, up 206.88% from the year-ago period.
FRO's full-year Zacks Consensus Estimates are calling for earnings of $1.15 per share and revenue of $1.17 billion. These results would represent year-over-year changes of +40.24% and +109.11%, respectively.
Investors might also notice recent changes to analyst estimates for FRO. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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, the Zacks Consensus EPS estimate has moved 50.64% lower. FRO is currently a Zacks Rank #3 (Hold).
In terms of valuation, FRO is currently trading at a Forward P/E ratio of 6.96. For comparison, its industry has an average Forward P/E of 7.21, which means FRO 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 235, which puts it in the bottom 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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