Although the market has been weak in 2022 (to say the least), several stocks have snapped the bearish trend, providing investors with considerable gains.
One such stock, Scorpio Tankers Inc, has seen its shares soar more than 300% year-to-date, leaving the S&P 500 in the dust. This is shown in the chart below.
Image Source: Zacks Investment Research
Scorpio Tankers Inc. STNG provides marine transportation of petroleum products worldwide for integrated oil companies, oil traders, and other customers.
Further, the company’s earnings outlook has turned visibly bright over the last several months, helping to land the stock into a favorable Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
And for the cherry on top, shares are inching toward 52-week highs, indicating strong positive momentum.
Stocks making new highs tend to make even higher highs, especially when positive earnings estimate revisions roll in from analysts. Let’s take a deeper dive into the company.
Valuation
The company’s forward price-to-sales ratio sits at 2.2X, above its five-year median of 1.5X and its Zacks Transportation sector average of 1.7X.
Image Source: Zacks Investment Research
Further, the company carries a Style Score of “C” for Value.
Quarterly Performance
Scorpio Tankers has consistently posted better-than-expected quarterly results, exceeding earnings and revenue estimates in three consecutive quarters.
In its latest release, the shipping giant penciled in a sizable 13% EPS beat paired with a 9% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Dividends
Who doesn’t like getting paid? Fortunately for those who seek income, STNG has that covered; the company’s annual dividend currently yields a modest 0.8% paired with a sustainable payout ratio sitting at 6% of its earnings.
Image Source: Zacks Investment Research
Bottom Line
While the general market has weathered rough conditions in 2022, Scorpio Tankers Inc. STNG has done the opposite, sailing through calm waters and providing investors with a massive 300% gain.
In addition, shares are inching toward 52-week highs, with bulls undoubtedly trying to push price through this level.
And the company’s positive earnings outlook provides the fuel shares need to bust through.
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Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
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