A strong stock as of late has been Teekay Tankers (TNK). Shares have been marching higher, with the stock up 16.3% over the past month. The stock hit a new 52-week high of $84.24 in the previous session. Teekay Tankers has gained 56.4% since the start of the year compared to the 16.5% move for the Zacks Transportation sector and the 48.8% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 29, 2026, Teekay Tankers reported EPS of $5.54 versus consensus estimate of $5.23.
Valuation Metrics
Though Teekay Tankers has recently hit a 52-week high, what is next for Teekay Tankers? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Teekay Tankers has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 5.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9X. On a trailing cash flow basis, the stock currently trades at 8.8X versus its peer group's average of 5.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Teekay Tankers an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Teekay Tankers currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Teekay Tankers fits the bill. Thus, it seems as though Teekay Tankers shares could have potential in the weeks and months to come.
How Does TNK Stack Up to the Competition?
Shares of TNK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is EuroDry (EDRY). EDRY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. EuroDry beat our consensus estimate by 69.44%, and for the current fiscal year, EDRY is expected to post earnings of $5.77 per share on revenue of $68.86 million.
Shares of EuroDry have gained 72.9% over the past month, and currently trade at a forward P/E of 6.7X and a P/CF of 19.04X.
The Transportation - Shipping industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TNK and EDRY, even beyond their own solid fundamental situation.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.Â
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Keep it Clean. Please avoid obscene, vulgar, lewd,
racist or sexually-oriented language. PLEASE TURN OFF YOUR CAPS LOCK. Don't Threaten. Threats of harming another
person will not be tolerated. Be Truthful. Don't knowingly lie about anyone
or anything. Be Nice. No racism, sexism or any sort of -ism
that is degrading to another person. Be Proactive. Use the 'Report' link on
each comment to let us know of abusive posts. Share with Us. We'd love to hear eyewitness
accounts, the history behind an article.
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.