(NAT) - Consensus estimates for this quarter soared 55.7% to 95 cents over the past 30 days

Nordic American Tanker Shipping Limited (NAT), a Zacks #1 Rank stock, topped the Street's earnings estimate for the past three quarters, most recently by 19.3%. An increase in the company's credit line to $500 million, along with a public offering of five million shares of its common stock, should help NAT add to its current fleet of vessels. The company has a price-to-book ratio of 1.6, compared to 5.2 for the market, and is currently yielding 12.3%. Full Analysis Nordic American Tanker Shipping Limited engages in the ownership and operation of crude oil tankers in Bermuda. On Jul 6, the company announced that it acquired its eleventh and twelfth Suezmax tankers. NAT topped analysts' earnings expectations for the past three quarters by an average margin of 12.5%. On Jul 27, the company announced second-quarter earnings per share of 68 cents. The results easily surpassed the Street's estimate of 57 cents by 19.3%. Compared to the prior-year period, earnings were up 19.3% as well. Looking ahead to the third quarter, NAT stated on Sep 26 that it expects profits between 92 cents and 95 cents per share. The company expects to boost its third-quarter dividend to between $1.28 and $1.31 per share, compared to 60 cents per share in the third quarter of 2005. The Board of Directors declared a quarterly dividend of $1.07 for the second quarter. Investors requiring additional cash flow in the form of a dividend have been extremely pleased with NAT's current dividend yield of 12.3%. Analysts' optimism has grown considerably over the past 60 days. Consensus estimates for this quarter soared 55.7% to 95 cents over the past 30 days. Profit forecasts for the full year of 2006 are up 4.2% over the same period of time. On Sep 6, NAT's lenders authorized an increase in the company's credit line to $500 million from $300 million. This bodes well for the company because it will be able to acquire more vessels. Furthermore, on Sep 26, NAT announced that it will offer five million shares of its common stock through a public offering. The proceeds will be used to pay the balance of the company's most recently acquired tankers as well as fund future acquisitions. NAT is currently trading at a valuation of 9.5x trailing 12-month earnings and at 9.3x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.9x trailing 12-month earnings and at 15.9x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.6, compared to 5.2 for the market. NAT's return on equity of 18% tops the industry average of 15%. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home