Growth stock International Seaways, today's selection for IBD 50 Stocks to Watch, puts its growth streak on the line this week with second-quarter results.
International Seaways will report earnings on Wednesday before the market opens. Analysts polled by FactSet expect sales of $253.8 million — a 35% increase from the prior year. The consensus earnings estimate is $2.55 per share, up from a loss of 5 cents in the year-ago quarter.
For the full year, Wall Street expects 59% earnings growth.
The Q2 report will indicate whether International Seaways can continue a rebound that's been impressive so far.
After falling 15% in Q3 of 2021, the company's sales started to rebound. Sales rose 67%, 117%, 306%, 179%, 257% and 183% the past several quarters, according to IBD MarketSmith..
The company posted losses but returned to profitability in the third quarter of 2022, with additional profits in Q4 and Q1.
After the Q1 release, the company also announced a dividend of 12 cents per share as well as a supplemental dividend of $1.50 per share payable to shareholders on record as of June 14.
Sanctions on Russian oil boosted tanker demand and increased tanker utilization while also leading to longer ton-miles. The company expects strong oil demand to drive tanker utilization in the second half of 2023.
The stock is in a cup base with a buy point of 53.25, so it could be a while before a breakout happens.
Shares are back above the 50-day moving average after spending many weeks below it. Tear to date, the stock is up 20%, which is slightly higher than the performance of the S&P 500.
A perfect Composite Rating of 99 and strong RS Rating of 93 support the IBD 50 component stock's action.
Growth Stock Transports Crude Oil
International Seaways provides tankers for transporting crude oil and petroleum around the world. It owns a fleet of 75 vessels. In July 2021, the oil transporter merged with Diamond S Shipping and added its vessels to its fleet.
The company started trading on the NYSE after a spin off by its parent company, Overseas Shipholding Group, in 2016. OSG shareholders received 0.3333 shares of INSW for every OSG stock held as of the record date of Nov. 18, 2016. INSW started regular trading on the NYSE in December 2016.
INSW ranks third in IBD's oil and gas transportation group, which is 58th among 197 industry groups.
More funds have been buying the oil transportation stock over the past four quarters. The stock's Accumulation/Distribution Rating of A also indicates strong interest from mutual funds, which own 41% of shares outstanding.
Exchange traded funds that hold the growth stock include iShares Russell 2000 Value ETF and Dimensions U.S. Targeted Value ETF.
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