Core Insights - The global therapeutic market for Moderate to Severe Acne is poised for transformation with over 10 pharmaceutical companies developing more than 10 pipeline drugs aimed at innovating acne treatments [1][3] Group 1: Emerging Therapies - ASC40 by Ascletis Pharma Inc. is a fatty acid synthase inhibitor that targets lipogenesis, a key factor in sebum production related to acne [2] - Botanix Pharmaceuticals' BTX 1503 utilizes the novel Permetrex™ drug delivery technology to address multiple causal factors of acne [2] Group 2: Future Outlook - The report indicates a significant shift towards more effective treatment regimens for Moderate to Severe Acne, driven by advancements in clinical studies and strategic collaborations [3] - Increased disease awareness and healthcare investments globally are expected to expand the market for acne treatments [3] Group 3: Key Companies - Notable companies involved in the development of acne treatments include Ascletis Pharma Inc., Botanix Pharmaceuticals, Biofrontera Bioscience GmbH, Novartis, BIOPHARMX, INC., DERMATA THERAPEUTICS, INC., AnaptysBio, and VYNE Therapeutics Inc. [4]

Core Viewpoint - The global shipping market, particularly commodity shipping, is benefiting from geopolitical tensions and weak global economic conditions, leading to significant stock price increases for shipping companies like Ardmore Shipping (ASC) [1][2]. Financial Performance - Ardmore Shipping's stock has increased by approximately 550% since 2021, with a recent 30% spike after exceeding Q1 sales and income expectations [1]. - Despite this growth, ASC trades at a low forward P/E of 6.2X and offers a dividend yield of around 4.5%, indicating potential undervaluation [1]. - The company has a market capitalization of $850 million and has improved its financial metrics, including low debt-to-EBITDA and times interest earned ratios [1]. Market Dynamics - The shipping industry is experiencing a supply shortage due to geopolitical issues, including the breakdown of overland trade routes in Eastern Europe and congestion in key shipping canals [1][4]. - Ardmore focuses on medium-range chemical shipping vessels, which are less affected by long-distance route disruptions, positioning the company favorably in the current market [4]. Earnings Projections - Analysts predict Ardmore's EPS will decline from $3.3 in 2024 to between $1.22 and $2.73 by 2026, reflecting expectations of a reversal in earnings spikes [2]. - The MR shipping rate peaked at $42.5K per day but has since decreased to around $31K, still above historical averages, impacting EPS estimates [5][6]. Supply Chain Implications - The decline in petroleum products transported from Russia to Europe is expected to increase U.S. exports to Europe, benefiting Ardmore's revenue [4]. - The current global shipping market is characterized by an aging fleet and low future growth, suggesting that supply constraints may persist, potentially allowing Ardmore's EPS to remain above $3 for an extended period [8]. Investment Outlook - The company is viewed as a hedge against ongoing geopolitical conflicts, which may create risks for other stocks but offer rewards for Ardmore [9]. - With a solid balance sheet, including $46 million in financial debt and $93 million in positive working capital, Ardmore is positioned to withstand potential downturns [9]. - The stock is considered undervalued as long as its forward P/E remains below 8X, with a target price of around $26, indicating a potential upside of 30% from current levels [9].

Group 1: Company Overview - Ardmore Shipping (ASC) currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [2][6] - The company has seen significant price changes, with shares up 25.72% over the past quarter and 55.95% over the last year, outperforming the S&P 500 which moved 4.11% and 28.28% respectively [3] Group 2: Price Performance - Over the past week, ASC shares increased by 3.14%, while the Zacks Transportation - Shipping industry rose by 1.69% [3] - The monthly price change for ASC is 25.49%, compared to the industry's performance of 8.6% [3] Group 3: Trading Volume - ASC's average 20-day trading volume is 565,376 shares, which is a useful indicator for assessing price movements [4] Group 4: Earnings Outlook - In the past two months, 2 earnings estimates for ASC have moved higher, increasing the consensus estimate from $2.60 to $2.97 [5] - For the next fiscal year, 2 estimates have also moved upwards with no downward revisions [5]

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, May10th:Sprouts Farmers Market (SFM) : This company which operates in a highly fragmented grocery store industry, has a unique model that features fresh produce, foods section, and a vitamin department focused on overall wellness, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 4.4% over the last 60 days.Sprouts Farmers Market’s shares ...

Group 1 - Ardmore Shipping (ASC) provides seaborne transportation of petroleum products and chemicals worldwide, with a Zacks Consensus Estimate for current year earnings increasing by 14.2% over the last 60 days [1] - Ardmore Shipping has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 4.1%, compared to the industry average of 2.3% [1] - Kubota (KUBTY) is the world's largest maker of small tractors and Japan's second largest manufacturer of farm equipment, with a Zacks Consensus Estimate for current year earnings increasing nearly 5.9% over the last 60 days [1] Group 2 - LCI Industries (LCII) supplies components to the recreational vehicle and manufactured housing industries, with a Zacks Consensus Estimate for current year earnings increasing nearly 0.9% over the last 60 days [2] - LCI Industries has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 3.7%, compared to the industry average of 0.0% [2]

Have you been paying attention to shares of Ardmore Shipping (ASC) ? Shares have been on the move with the stock up 30.1% over the past month. The stock hit a new 52-week high of $20.52 in the previous session. Ardmore Shipping has gained 44.4% since the start of the year compared to the 0% move for the Zacks Transportation sector and the 13.8% return for the Zacks Transportation - Shipping industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Financial Data and Key Metrics - Q1 2024 adjusted earnings were $38 million or $0.92 per share, reflecting robust market conditions [6] - MR tankers earned $38,400 per day in Q1 and $40,500 per day in Q2 with 60% booked [6] - Chemical tankers earned $29,100 per day in Q1 and $39,000 per day in Q2 with 60% booked [6] - Declared a quarterly cash dividend of $0.31 per share, consistent with the policy of paying out one-third of adjusted earnings [7] - Total dividends paid since Q4 2022 amount to $70 million, representing 10% of market cap [10] - Q1 EBITDAR was strong, with full reconciliation provided in the appendix [18] - Total CapEx for 2024 is anticipated to be $17 million, including $11 million for scrubber installations and efficiency upgrades [19] Business Line Performance - MR tankers showed strong performance, with TCE rates increasing sequentially [6] - Chemical tankers also performed well, with rates increasing significantly in Q2 [6] - The company completed the sale of the 2010-built Ardmore Seafarer and acquired the 2017-built Ardmore Gibraltar, which has better fuel efficiency and cargo flexibility [11] - Over 50% of the MR fleet is now outfitted with second-generation carbon capture-ready scrubbers [19] Market Data and Key Metrics - Geopolitical events and disruptions, such as the EU refined products embargo and Red Sea routing changes, are driving higher ton-mile demand [8] - Panama Canal congestion remains 20% below prior year levels, further contributing to ton-mile demand [9] - Global refinery runs are projected to increase by 5% in 2024 to 85 million barrels per day, driven by activity in Asia and the Middle East [9] - The MR order book is at 9% of the existing fleet, with the fleet aging rapidly and close to half of the MR fleet expected to surpass the 20-year age mark in the next 5 years [13][15] Company Strategy and Industry Competition - The company continues to execute its capital allocation policy, focusing on dividends, fleet modernization, and reducing carbon emissions [7][10] - Investments in fleet upgrades and scrubber installations are aimed at improving performance and reducing emissions [19] - The company is focused on reducing cash breakeven levels, with a target of below $11,500 per day, achieved through cost control, debt reduction, and fleet optimization [17][33] - The company is also investing in energy transition projects, including a $10 million investment in E1 Marine, which focuses on hydrogen production technology [40] Management Commentary on Operating Environment and Future Outlook - The near-term outlook remains positive, supported by strong supply/demand fundamentals and geopolitical events [8] - The company expects continued strength in the product and chemical tankers market, driven by long-term demand drivers such as refinery dislocation and increasing oil consumption [16] - Management highlighted the importance of maintaining a strong balance sheet and optimizing performance to capture market opportunities [17][21] Other Important Information - The company has largely completed its scheduled drydockings and upgrades for the year, which will increase revenue days and enhance earnings power [7][19] - The company has significant operating leverage, with every $10,000 per day increase in TCE rates leading to an approximate $2.30 annual increase in EPS and nearly $100 million in free cash flow generation [20] Q&A Session Summary Question: What is driving the strong performance in the chemical tanker market? - The strong performance is attributed to good chartering practices and favorable market conditions [25] Question: What is the plan for financing the purchase of the two leased vessels? - The company plans to draw on its revolving credit facilities for the $41 million outlay [27] Question: How does the company view capital allocation given its strong balance sheet? - The company remains focused on debt reduction, fleet investment, and returning capital to shareholders when appropriate [29] Question: What initiatives are driving the path to a $11,500 cash breakeven? - The company is pursuing multiple initiatives, including sale and leasebacks, cost reductions, and further debt reduction [33] Question: What is the status of the investment in E1 Marine? - E1 Marine is expanding its global scale through licensing agreements across various industries, with significant momentum in licensing revenue [40]

Company Performance - Ardmore Shipping (ASC) has gained approximately 18.4% year-to-date, outperforming the average loss of 3.4% in the Transportation sector [2][3] - The Zacks Consensus Estimate for ASC's full-year earnings has increased by 11.7% over the past 90 days, indicating improved analyst sentiment and a stronger earnings outlook [2] - Ardmore Shipping holds a Zacks Rank of 2 (Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [1][2] Industry Comparison - Ardmore Shipping is part of the Transportation - Shipping industry, which has seen an average gain of 6.1% this year, indicating that ASC is performing better than its industry peers [3] - In contrast, Cathay Pacific Airways Ltd. operates within the Transportation - Airline industry, which has a lower ranking (93) and has gained 14.5% since the beginning of the year [3] - The Transportation group as a whole is ranked 11 within the Zacks Sector Rank, reflecting the relative strength of the sector [1]

Core Viewpoint - Ardmore Shipping (ASC) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected on May 8 [1][2]. Earnings Estimates - The consensus estimate for Ardmore Shipping's quarterly earnings is $0.87 per share, reflecting a year-over-year decrease of 16.4% [2]. - Expected revenues for the quarter are $73.58 million, which is a decline of 9.9% compared to the same quarter last year [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 3.28% higher, indicating a reassessment by covering analysts [2]. - The Most Accurate Estimate for Ardmore Shipping matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with significant predictive power for positive readings only [3][4]. - Ardmore Shipping currently holds a Zacks Rank of 2 (Buy), but the combination of a 0% Earnings ESP makes it challenging to predict an earnings beat [5][6]. Historical Performance - In the last reported quarter, Ardmore Shipping was expected to post earnings of $0.59 per share but exceeded expectations with earnings of $0.63, resulting in a surprise of +6.78% [7]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [7]. Conclusion - While Ardmore Shipping does not appear to be a compelling earnings-beat candidate, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [8].

Core Viewpoint - Ardmore Shipping's stock has shown resilience with a recent increase of 1.62%, outperforming major indices like the S&P 500 and Dow [1] - The upcoming earnings report is anticipated to reveal a decline in earnings per share (EPS) and revenue compared to the previous year [1][2] Group 1: Recent Performance - Ardmore Shipping closed at $16.89, with a monthly gain of 1.22%, while the Transportation sector declined by 7.09% [1] - The stock's performance exceeded the S&P 500's daily gain of 1.02% and the Dow's increase of 0.4% [1] Group 2: Earnings Expectations - The earnings report scheduled for May 8, 2024, is expected to show an EPS of $0.87, down 16.35% year-over-year [1] - Revenue projections are set at $73.58 million, reflecting a decrease of 9.91% from the previous year [1] Group 3: Annual Estimates - For the annual period, the Zacks Consensus Estimates predict an EPS of $2.72 and revenue of $251.87 million, indicating a slight increase in EPS (+0.37%) but a revenue decline (-4.62%) compared to last year [2] Group 4: Analyst Sentiment - Recent adjustments to analyst estimates suggest a positive outlook for Ardmore Shipping, with upward revisions indicating confidence in the company's profitability [2] - The Zacks Rank system, which incorporates these estimate changes, currently rates Ardmore Shipping as 2 (Buy) [3] Group 5: Valuation Metrics - Ardmore Shipping's Forward P/E ratio stands at 6.11, which is lower than the industry average of 7.59, indicating a potential undervaluation [3] - The Transportation - Shipping industry ranks in the top 20% of over 250 industries according to the Zacks Industry Rank [3]