Here are three stocks with buy rank and strong income characteristics for investors to consider today, May 10th:Ardmore Shipping (ASC) : This company which provides seaborne transportation of petroleum products and chemicals worldwide to oil majors, national oil companies, oil and chemical traders, and chemical companies, as well as in other areas in Colombia and northern Peru, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.2% over the last 60 days.This Zacks Rank #1 ...

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]

Ardmore Shipping (ASC) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 8. On ...

Ardmore Shipping (ASC) closed the most recent trading day at $16.89, moving +1.62% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.4%, and the technology-dominated Nasdaq saw an increase of 2.03%.Coming into today, shares of the shipping company had gained 1.22% in the past month. In that same time, the Transportation sector lost 7.09%, while the S&P 500 lost 3.15%.Investors will be eagerly watching for the per ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Shares of Ardmore Shipping (ASC) have gained 0.6% over the past four weeks to close the last trading session at $16.32, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $20.67 indicates a potential upside of 26.7%.The mean estimate comprises three short-term price targets with a standard deviation of $1.15. While the lowest estimate of $20 indicates a 22.6% increase from the curr ...

If you’ve been keeping up with the news lately, you know tensions in the Middle East have been escalating significantly. While they’ve calmed down for the moment, as long as conflict continues raging in the region, it’s only a matter of time before the next major flare-up. Moreover, production cuts from OPEC+ and sanctions on major oil producers like Russia can only mean oil will keep trading at elevated prices in the future. Venezuela also got slapped with sanctions recently, so oil stocks are a great inve ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Ardmore Shipping (ASC) , which belongs to the Zacks Transportation - Shipping industry.This shipping company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.37%.For the last reported quarter, Ardmore Shipping came out with earni ...