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What Makes Scorpio Tankers (STNG) a Strong Sell?

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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Scorpio Tankers Inc . STNG , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in STNG.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen three estimates moving down in the past 30 days, compared with just one upward revision. This trend has caused the consensus estimate to trend lower, going from a loss of 3 cents a share a month ago to its current level of loss of 8 cents.

Also, for the current quarter, Scorpio Tankers has seen three downward estimate revisions versus two revisions in the opposite direction, dragging the consensus estimate down to a loss of 20 cents a share from a loss of 17 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 13.3% in the past month.

Scorpio Tankers Inc. Price and Consensus

Scorpio Tankers Inc. Price and Consensus | Scorpio Tankers Inc. Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.

If you are still interested in the Transportation - Shipping industry, you may instead consider a better-ranked stock - GasLog Ltd. (GLOG). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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Scorpio Tankers Inc. (STNG): Free Stock Analysis Report

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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.

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