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Frontline (FRO) Gains As Market Dips: What You Should Know

Zacks Equity Research

In the latest trading session, Frontline (FRO) closed at $9.36, marking a +0.97% move from the previous day. This move outpaced the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 1.17%, while the tech-heavy Nasdaq lost 0.28%.

Heading into today, shares of the shipping company had lost 7.39% over the past month, lagging the Transportation sector's gain of 11.62% and the S&P 500's gain of 15.69% in that time.

Investors will be hoping for strength from FRO as it approaches its next earnings release. On that day, FRO is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 240.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $299.09 million, up 112.48% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.99 per share and revenue of $1.05 billion, which would represent changes of +142.68% and +87.72%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for FRO. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. FRO currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that FRO has a Forward P/E ratio of 4.67 right now. For comparison, its industry has an average Forward P/E of 6.6, which means FRO is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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