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In the latest trading session, Seanergy Maritime Holdings Corp (SHIP) closed at $10.82, marking a +0.11% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.31%.
Prior to today's trading, shares of the company had gained 0.93% over the past month. This has lagged the Transportation sector's gain of 4.32% and the S&P 500's gain of 1.57% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Seanergy Maritime Holdings Corp in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.55, signifying a 492.86% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $41.09 million, indicating a 68.04% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.38 per share and a revenue of $163.29 million, indicating changes of +271.88% and +48.13%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Seanergy Maritime Holdings Corp. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Seanergy Maritime Holdings Corp currently has a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Seanergy Maritime Holdings Corp is presently trading at a Forward P/E ratio of 4.54. This expresses a discount compared to the average Forward P/E of 7.04 of its industry.
The Transportation - Shipping industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Zacks Investment Research
Container liner shipping company ZIM Integrated Shipping Services Ltd. ZIM continues to benefit from upbeat global trade and container shipping demand. ZIM shares have performed exceedingly well on the bourses, gaining 91.9% over the past six months, handily outperforming its industry and other industry players like Seanergy Maritime Holdings SHIP and Frontline Plc FRO.
Six-Month Share Price Comparison
Technical indicators suggest continued strong performance for ZIM. The stock trades above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment, and confidence in ZIM’s financial health and prospects.
50-Day Moving Average of ZIM Stock
In view of the surge in ZIM, investors must be wondering if they should lock in profits or buy the stock for more upside potential. Let’s delve into the company’s fundamentals to determine the best course of action.
Red Sea Tensions Boost Freight Rates: A Tailwind for ZIM
ZIM Integrated Shipping, based in Israel, provides service to the East Mediterranean and Israeli ports. The attacks by Yemen’s Houthi militants on vessels in the Red Sea have disrupted maritime trade. As a result, many shipping companies, including ZIM, have hit the pause button as far as transit through this route is concerned and adopted the longer and costlier route around the Cape of Good Hope in South Africa rather than through the Suez Canal. Reduced container availability due to the Red Sea tensions has resulted in a rise in freight costs.
Lower capacity has boosted earnings. Rates are likely to remain high for quite some time, which may translate into further upside potential for shipping stocks like ZIM.
Strong Q2 Results & Upbeat Outlook for ZIM
Last month, ZIM reported better-than-expected earnings per share and revenues for the second quarter of 2024. Revenues increased 48% year over year, driven by an increase in freight rates and carried volume.
ZIM raised its guidance for full-year 2024 adjusted earnings before interest, taxes, depreciation, and amortization or EBITDA. The shipping company expects the metric to be in the range of $2.6-$3 billion. Previously, ZIM anticipated to generate adjusted EBITDA between $1.15 and $1.55 billion.
Additionally, the board declared a cash dividend of approximately $112 million, or 93 cents per ordinary share, sticking to its policy of returning 30% of net income to its shareholders. The shipping company’s quarterly dividend quadrupled quarter over quarter. ZIM’s shareholder-friendly approach throws light on its financial prosperity. The shipping company’s high dividend yield is a huge positive for income-seeking investors. This highlights confidence in its cash flow and prospects.
Further Positives Propelling ZIM Stock
The shipping company’s asset-light model, which means that the focus is more on leasing rather than owning vessels, allows it to adjust capacity rapidly in response to market changes. This practice helps the company to boost profits during periods of high demand.
ZIM’s focus on niche markets and high-margin trade routes helps it avoid the crowded, low-margin segments, thereby maintaining strong pricing power. This, too, aids profitability. The shipping company’s operational efficiency is being aided by investments in digitalization and innovative technologies. This not only boosts ZIM’s bottom line but allows it to take advantage of emerging trends, such as the increased demand for eco-friendly shipping solutions.
Attractive Valuation Adds to ZIM’s Luster
From a valuation standpoint, ZIM stock is trading at a forward 12-month sales multiple of 0.35, lower than the industry as well as the 3-year median. The stock, having a Value Score of A, seems to be undervalued now.
Earnings Estimate Revision Favoring ZIM Stock
Reflecting the positive sentiment around ZIM, the Zacks Consensus Estimate for earnings per share for the remaining quarters of 2024, as well as the full year, has seen upward revisions.
The company’s long-term (3-5 years) earnings growth rate is an impressive 47.4%, higher than its industry’s 23.3%.
Final Verdict
Given the positives surrounding the ZIM stock, as highlighted throughout the write-up, we believe that it’s not too late for investors looking to add ZIM stock to their portfolios for healthy returns. They can still invest in the stock, considering that it currently sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Investment Research
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Seanergy Maritime Holdings (SHIP) is a stock many investors are watching right now. SHIP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.36, which compares to its industry's average of 6.82. Over the past year, SHIP's Forward P/E has been as high as 60.23 and as low as 3.79, with a median of 6.73.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SHIP has a P/S ratio of 1.46. This compares to its industry's average P/S of 1.47.
Finally, investors should note that SHIP has a P/CF ratio of 3.27. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.84. Over the past 52 weeks, SHIP's P/CF has been as high as 6.16 and as low as 2.70, with a median of 4.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Seanergy Maritime Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHIP feels like a great value stock at the moment.
Zacks Investment Research
Seanergy Maritime Holdings Corp (SHIP) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Shares of this company have returned -5.5% over the past month versus the Zacks S&P 500 composite's +2.9% change. The Zacks Transportation - Shipping industry, to which Seanergy Maritime Holdings belongs, has lost 5.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Seanergy Maritime Holdings is expected to post earnings of $0.55 per share, indicating a change of +492.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.38 points to a change of +271.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $2.28 indicates a change of -4.2% from what Seanergy Maritime Holdings is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Seanergy Maritime Holdings.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Seanergy Maritime Holdings, the consensus sales estimate of $41.09 million for the current quarter points to a year-over-year change of +68%. The $163.29 million and $173.25 million estimates for the current and next fiscal years indicate changes of +48.1% and +6.1%, respectively.
Last Reported Results and Surprise History
Seanergy Maritime Holdings reported revenues of $43.13 million in the last reported quarter, representing a year-over-year change of +52.2%. EPS of $0.77 for the same period compares with $0.18 a year ago.
Compared to the Zacks Consensus Estimate of $40.69 million, the reported revenues represent a surprise of +6%. The EPS surprise was +24.19%.
Over the last four quarters, Seanergy Maritime Holdings surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Seanergy Maritime Holdings is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Seanergy Maritime Holdings. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Zacks Investment Research
Seanergy Maritime Holdings Corp has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned +21.2% over the past month versus the Zacks S&P 500 composite's +3.2% change. The Zacks Transportation - Shipping industry, to which Seanergy Maritime Holdings belongs, has lost 0.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Seanergy Maritime Holdings is expected to post earnings of $0.55 per share, indicating a change of +492.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +366.7% over the last 30 days.
The consensus earnings estimate of $2.38 for the current fiscal year indicates a year-over-year change of +271.9%. This estimate has changed +35.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.28 indicates a change of -4.2% from what Seanergy Maritime Holdings is expected to report a year ago. Over the past month, the estimate has changed +16.3%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Seanergy Maritime Holdings is rated Zacks Rank #1 (Strong Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Seanergy Maritime Holdings, the consensus sales estimate for the current quarter of $41.09 million indicates a year-over-year change of +68%. For the current and next fiscal years, $163.29 million and $173.25 million estimates indicate +48.1% and +6.1% changes, respectively.
Last Reported Results and Surprise History
Seanergy Maritime Holdings reported revenues of $43.13 million in the last reported quarter, representing a year-over-year change of +52.2%. EPS of $0.77 for the same period compares with $0.18 a year ago.
Compared to the Zacks Consensus Estimate of $40.69 million, the reported revenues represent a surprise of +6%. The EPS surprise was +24.19%.
Over the last four quarters, Seanergy Maritime Holdings surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Seanergy Maritime Holdings is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Seanergy Maritime Holdings. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.
Zacks Investment Research
The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Seanergy Maritime Holdings Corp been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
Seanergy Maritime Holdings Corp is one of 135 individual stocks in the Transportation sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Seanergy Maritime Holdings Corp is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for SHIP's full-year earnings has moved 35.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that SHIP has returned about 37.9% since the start of the calendar year. In comparison, Transportation companies have returned an average of -3.9%. This means that Seanergy Maritime Holdings Corp is performing better than its sector in terms of year-to-date returns.
One other Transportation stock that has outperformed the sector so far this year is ZIM Integrated Shipping Services . The stock is up 115.1% year-to-date.
Over the past three months, ZIM Integrated Shipping Services' consensus EPS estimate for the current year has increased 323.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Seanergy Maritime Holdings Corp belongs to the Transportation - Shipping industry, a group that includes 43 individual stocks and currently sits at #139 in the Zacks Industry Rank. Stocks in this group have gained about 19.8% so far this year, so SHIP is performing better this group in terms of year-to-date returns. ZIM Integrated Shipping Services is also part of the same industry.
Investors interested in the Transportation sector may want to keep a close eye on Seanergy Maritime Holdings Corp and ZIM Integrated Shipping Services as they attempt to continue their solid performance.
Zacks Investment Research
Shares of Seanergy Maritime Holdings Corp have gained 17.4% over the past four weeks to close the last trading session at $11.09, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $14.33 indicates a potential upside of 29.2%.
The mean estimate comprises three short-term price targets with a standard deviation of $1.15. While the lowest estimate of $13 indicates a 17.2% increase from the current price level, the most optimistic analyst expects the stock to surge 35.3% to reach $15. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SHIP. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Here's What You May Not Know About Analysts' Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why SHIP Could Witness a Solid Upside
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 35.5%, as one estimate has moved higher compared to no negative revision.
Moreover, SHIP currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here
Therefore, while the consensus price target may not be a reliable indicator of how much SHIP could gain, the direction of price movement it implies does appear to be a good guide.
Zacks Investment Research
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