Strength Seen In Ardmore Shipping (ASC): Can Its 10.9% Jump Turn Into More Strength?

blue and red cargo ship on sea during daytime

Photo by David Vives on Unsplash

Ardmore Shipping (ASC) shares ended the last trading session 10.9% higher at $5.51. 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 16.1% gain over the past four weeks.

The optimism surrounding the product tanker market is aiding the Ardmore Shippingstock immensely. Uptick in consumption and trade of refined petroleum products are aiding product tanker stocks like Ardmore Shipping. In fact, product tanker stocks have performed much better than shares of crude tanker companies even after the Russia-Ukraine war began. Shares of Ardmore Shipping have gained 24.7% since Feb 24.

This shipping company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +38.5%. Revenues are expected to be $31.54 million, up 25.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Ardmore Shipping, 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 ASC 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).

Ardmore Shipping is part of the Zacks Transportation - Shipping industry. Danaos (DAC) , another stock in the same industry, closed the last trading session 0.7% lower at $90.21. DAC has returned -2.5% in the past month.

For Danaos, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $9.48. This represents a change of +235% from what the company reported a year ago. Danaos currently has a Zacks Rank of #2 (Buy).

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