Seanergy Maritime Holdings Corp (SHIP) is Attracting Investor Attention: Here is What You Should Know

Seanergy Maritime Holdings Corp (SHIP) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this company have returned -9.3%, compared to the Zacks S&P 500 composite's +3.3% change. During this period, the Zacks Transportation - Shipping industry, which Seanergy Maritime Holdings falls in, has lost 5.3%. The key question now is: What could be the stock's future direction?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.For the current quarter, Seanergy Maritime Holdings is expected to post earnings of $0.50 per share, indicating a change of -13.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +22.2% over the last 30 days.The consensus earnings estimate of $2.49 for the current fiscal year indicates a year-over-year change of +289.1%. This estimate has changed +4.1% over the last 30 days.For the next fiscal year, the consensus earnings estimate of $2.11 indicates a change of -15.1% from what Seanergy Maritime Holdings is expected to report a year ago. Over the past month, the estimate has changed -7.5%.Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Seanergy Maritime Holdings is rated Zacks Rank #5 (Strong Sell).The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSRevenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.In the case of Seanergy Maritime Holdings, the consensus sales estimate of $40.2 million for the current quarter points to a year-over-year change of +2%. The $165.98 million and $160.26 million estimates for the current and next fiscal years indicate changes of +50.6% and -3.5%, respectively.Last Reported Results and Surprise HistorySeanergy Maritime Holdings reported revenues of $44.36 million in the last reported quarter, representing a year-over-year change of +81.4%. EPS of $0.69 for the same period compares with -$0.14 a year ago.Compared to the Zacks Consensus Estimate of $42.1 million, the reported revenues represent a surprise of +5.35%. The EPS surprise was +11.29%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.Seanergy Maritime Holdings is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Seanergy Maritime Holdings. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Seanergy Maritime Holdings Corp (SHIP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks