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Here's Why Star Bulk Carriers (SBLK) Fell More Than Broader Market

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In the latest market close, Star Bulk Carriers (SBLK - Free Report) reached $14.94, with a -0.4% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.39%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.32%.

Shares of the shipping company have depreciated by 26.61% over the course of the past month, underperforming the Transportation sector's loss of 2.85% and the S&P 500's gain of 3.6%.

The investment community will be closely monitoring the performance of Star Bulk Carriers in its forthcoming earnings report. In that report, analysts expect Star Bulk Carriers to post earnings of $0.39 per share. This would mark a year-over-year decline of 46.58%. Simultaneously, our latest consensus estimate expects the revenue to be $299.25 million, showing a 13.58% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $2.73 per share and a revenue of $1.26 billion, demonstrating changes of +48.37% and +32.29%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Star Bulk Carriers. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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, there's been a 12.27% fall in the Zacks Consensus EPS estimate. Right now, Star Bulk Carriers possesses a Zacks Rank of #3 (Hold).

With respect to valuation, Star Bulk Carriers is currently being traded at a Forward P/E ratio of 5.49. This indicates a discount in contrast to its industry's Forward P/E of 5.61.

One should further note that SBLK currently holds a PEG ratio of 3.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SBLK's industry had an average PEG ratio of 0.67 as of yesterday's close.

The Transportation - Shipping industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 14% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SBLK in the coming trading sessions, be sure to utilize Zacks.com.


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