Genco Shipping & Trading (GNK) shares fall as market gains: What you need to know – September 19, 2022

Genco Shipping and Trading (GNK Free Report) closed the last day of trading at $13.12, or -1.2% from the previous trading session. That move lagged the S&P 500’s 0.69% daily gain. Meanwhile, the Dow Jones gained 0.64% and the tech-heavy Nasdaq lost 0.2%.

Going into today, shares of the dry bulk carrier had lost 14.82% in the past month, lagging the transportation sector’s 12.78% loss and the loss 9.94% of the S&P 500 during this period.

Wall Street will be looking for positivity from Genco Shipping & Trading as its next earnings report date nears. The company is expected to post EPS of $1.01, down 29.86% from the prior year quarter. Our most recent consensus estimate calls for quarterly revenue of $92.27 million, down 21.45% from the prior year period.

For the full year, our Zacks consensus estimates call for earnings of $4.50 per share and revenue of $400.95 million, which would represent swings of +6.13% and 0%, respectively, from compared to the previous year.

It is also important to note recent changes to analyst estimates for Genco Shipping & Trading. These recent revisions tend to reflect the evolving nature of short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated to short-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system is proven and externally audited for outperformance, with #1 stocks returning an average of +25 % per year since 1988. The Zacks Consensus EPS estimate has remained flat over the past month. Genco Shipping & Trading currently has a Zacks rating of #3 (Hold).

Investors should also note Genco Shipping & Trading’s current valuation metrics, including its Forward P/E ratio of 2.95. This represents a discount to the average PER of its sector of 3.34.

The Transport – Shipping industry is part of the Transport sector. This group has a Zacks Industry ranking of 47, which places it in the top 19% of over 250 industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to track all of these stock movement metrics, and more, at Zacks.com.

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