International Seaways is Monday's selection for the IBD 50 Stocks To Watch, thanks to the growth stock's strong fundamental and technical ratings as well as its proximity to a buy point. Rising oil prices have been a growth catalyst for oil and gas transportation stocks such as INSW.
INS stock is nearing a buy point of 48.40 in a cup-with-handle base. The oil shipping stock has a near-perfect Composite Rating of 98 and an EPS Rating of 81. The Relative Strength Rating is also an impressive 88.
Sales have grown steadily over the past seven quarters. Earnings have been mixed, but they have improved over the five most recent quarters.
Oil Stock Earnings Rise On Strong Oil Price, Demand
Second-quarter sales grew 55% to $292.2 million, while earnings per share of $3.12 were up 118% from the prior-year quarter. Profit swung from losses in the previous three quarters.
The oil shipping company also announced a dividend of $1.42, payable in September. During the quarter, the company also repurchased and retired 366,483 shares amounting to some $14 million.
Shares rose in strong volume on Aug. 9 after the second-quarter results, giving the stock's base its handle entry of 48.40. Lighter volume in the handle shows that the shakeout after gains was mild.
With oil prices on the rise, the stock is building support at the 50-day moving average in the handle, according to IBD MarketSmith chart analysis. Shares reached an all-time high of 53.25 in March before forming the current base.
Growth Stock Has Strong Fund Manager Interest
The stock's gain of 15% is a shade higher than the 13% gain of the S&P 500 so far this year.
International Seaways provides transportation services for crude oil and petroleum. The company operates a fleet of 75 vessels, including 13 very large crude carriers, 13 midsize Suezmaxes, five smaller Aframaxes and 37 medium-range tankers. The company makes its fleet available to customers through voyage charters and time charters.
Trading around $90 a barrel, 0il prices are near a 52-week high. According to the August report by the International Energy Agency, global demand for oil is expected to rise to 102.2 million barrels per day, with China accounting for 70% of demand. The growing demand will likely be a tailwind for oil tankers.
Mutual funds own 36% of outstanding shares of the company. Fund ownership has grown over the past four quarters, earning the stock an Accumulation/Distribution Rating of B.
Exchange traded funds hold the stock as well, including First Trust Small Cap Core AlphaDEX and iShares MSCI USA Small Cap Minimum Volatility Factor.
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