Have you been paying attention to shares of Teekay Tankers (TNK)? Shares have been on the move with the stock up 18.4% over the past month. The stock hit a new 52-week high of $100.91 in the previous session. Teekay Tankers has gained 88.8% since the start of the year compared to the 8.7% move for the Zacks Transportation sector and the 63.4% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2026, Teekay Tankers reported EPS of $5.54 versus consensus estimate of $5.23.
Valuation Metrics
Though Teekay Tankers has recently hit a 52-week high, what is next for Teekay Tankers? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Teekay Tankers has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 6.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9.6X. On a trailing cash flow basis, the stock currently trades at 10.6X versus its peer group's average of 6.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Teekay Tankers currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Teekay Tankers fits the bill. Thus, it seems as though Teekay Tankers shares could have potential in the weeks and months to come.
How Does TNK Stack Up to the Competition?
Shares of TNK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is A.P. Moller-Maersk (AMKBY). AMKBY has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. A.P. Moller-Maersk beat our consensus estimate by 114.29%, and for the current fiscal year, AMKBY is expected to post earnings of $2.21 per share on revenue of $63.3 billion.
Shares of A.P. Moller-Maersk have gained 8.6% over the past month, and currently trade at a forward P/E of 7.83X and a P/CF of 5.79X.
The Transportation - Shipping industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TNK and AMKBY, even beyond their own solid fundamental situation.
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Teekay Tankers Ltd. (TNK): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).