With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Nordic American Tankers
Forecasts on Nordic American Tankers
|Median Target Stock Price||$14|
|2011 EPS Estimate||($1.01)|
|2012 EPS Estimate||($0.83)|
|Expected Annual Earnings Growth, Next 5 Years||0%|
|CAPS Rating (out of 5)||****|
Source: S&P Capital IQ.
Will Nordic American Tankers sink or swim in 2012?
All in all, investors seem pretty pessimistic about Nordic American's prospects for this year. The target price for stock is less than $1 higher than its current share price, and projected losses for the just-ended year as well as 2012 don't show much enthusiasm for the stock or the industry overall.
Along with industrywide overcapacity, new energy production trends aren't working in tanker companies' favor. With increased exploration activity and new discoveries in the U.S., the need to move oil around the world decreases. That trend hit Ship Finance International
In addition, restructuring in the industry has introduced new risks. Frontline
But Nordic American is actually in good shape on the debt front, with a debt-to-equity ratio of just 19%. That speaks well to the company's ability to maintain its dividend, which is among the highest in the industry.
In the end, positive economic news could be the thing that turns Nordic American's shares around. But if renewed economic pressure hurts global trade again, the stock could be in for further rough sailing.
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Click here to add Nordic American Tankers to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.