While high fuel prices make investing in shipping a delicate affair, Scorpio Tankers ( STNG , quote ) has just been anointed by Barron's as being attractive for the sector. Its shares are up 2.90% over the last week of trading, while the Guggenheim Shipping ETF ( SEA , quote ) is down 0.11%.
On a quarterly basis, sales are up by 88.30%. The stock is down 38.18% for the last 52 weeks, but has risen 30.47% year-to-date. Even with the rise, the price-to-book ratio is only 0.72, meaning the stock sells at less than three-quarters the value of its assets.
This has been noticed by the professional investor community. Now trading around $6.40 a share, the mean analyst target price over the next year for Scorpio Tankers is $7.60.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.