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.