Teekay Tankers (TNK) Soars 7.4%: Is Further Upside Left in the Stock?

Teekay Tankers (TNK) shares ended the last trading session 7.4% higher at $55.96. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.5% gain over the past four weeks.

This was the third consecutive day of share price increase for the shipping company. In fact, TNK shares have performed well over the past month, gaining 21%. Gradual improvement in the tanker market contributed to the uptick.

This oil and gas shipping company is expected to post quarterly earnings of $1.10 per share in its upcoming report, which represents a year-over-year change of -39.9%. Revenues are expected to be $132.3 million, down 11.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Teekay Tankers, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on TNK going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Teekay Tankers belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Genco Shipping & Trading (GNK), closed the last trading session 1.2% higher at $18.23. Over the past month, GNK has returned 10.4%.

Genco Shipping's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.22. Compared to the company's year-ago EPS, this represents a change of -46.3%. Genco Shipping currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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