Dorian LPG (LPG) Stock Sinks As Market Gains: What You Should Know

Zacks
01-10

Dorian LPG (LPG) closed at $24.90 in the latest trading session, marking a -0.28% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.

The liquified petroleum gas shipping company's shares have seen an increase of 2.38% over the last month, surpassing the Transportation sector's loss of 5.71% and the S&P 500's loss of 2.7%.

Investors will be eagerly watching for the performance of Dorian LPG in its upcoming earnings disclosure. The company is expected to report EPS of $0.46, down 82.44% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $89.61 million, indicating a 45.05% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.84 per share and revenue of $397.65 million, which would represent changes of -62.63% and -29.08%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Dorian LPG. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has moved 17.68% lower within the past month. As of now, Dorian LPG holds a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Dorian LPG is presently being traded at a Forward P/E ratio of 8.77. Its industry sports an average Forward P/E of 7.11, so one might conclude that Dorian LPG is trading at a premium comparatively.

The Transportation - Shipping industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 241, finds itself in the bottom 4% echelons of all 250+ industries.

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

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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