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 Teekay Tankers
Forecasts on Teekay Tankers
|Median Target Stock Price||$6|
|2011 EPS Estimate||$0.21|
|2012 EPS Estimate||$0.11|
|Expected Annual Earnings Growth, Next 5 Years||6.5%|
Source: Yahoo! Finance.
Can Teekay Tankers bounce back in 2012?
Analysts have mixed thoughts about Teekay Tankers. On one hand, they expect roughly 40% share-price appreciation based on their target price. But that's not very consistent with having earnings cut in half. And with total revenue expected to contract again in 2012 by about 8%, it's clear that few think the hard times are over in the industry.
At this point, the future of the industry may depend on a game of musical chairs, as the last company standing may end up winning a big consolidation prize in the end. Frontline
With all the uncertainty in the global economy, it's very hard to predict how the oil shipping industry and Teekay Tankers in particular will do. But I believe that after a vicious shakeout in the industry, Teekay actually stands a pretty good chance of emerging stronger than it entered 2012.
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Click here to add Teekay 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.