Ardmore Shipping (ASC) Stock Sinks As Market Gains: Here's Why

Ardmore Shipping (ASC) ended the recent trading session at $9.84, demonstrating a -2.38% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.8% for the day. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%.

Coming into today, shares of the shipping company had gained 6.44% in the past month. In that same time, the Transportation sector gained 1.77%, while the S&P 500 gained 5.12%.

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Investors will be eagerly watching for the performance of Ardmore Shipping in its upcoming earnings disclosure. In the meantime, our current consensus estimate forecasts the revenue to be $44.45 million, indicating a 48.68% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.36 per share and revenue of $180.69 million, indicating changes of -52.11% and -33.85%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Ardmore Shipping. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 16.24% upward. Currently, Ardmore Shipping is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Ardmore Shipping has a Forward P/E ratio of 7.41 right now. For comparison, its industry has an average Forward P/E of 8.92, which means Ardmore Shipping 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 46, which puts it in the top 19% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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