Does Nordic American Tankers (NAT) have what it takes to be a top stock pick for momentum investors? Let's find out.
Nordic American Tankers remains a Strong Buy as Suezmax spot rates and earnings momentum continue to surge, with shares up over 80% since November 2025. NAT's fleet is 90% booked at $68,000/day in Q2 2026, with OPEX below $10,000/day, driving exceptional EBIT margins and robust dividend potential. Management's aggressive insider buying underscores confidence, and the forward yield remains above 13%, with potential for FY2026 dividends to reach 19.1% of market cap.
Nordic American Tankers (NAT) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.02 per share a year ago.
Here is how Nordic American Tankers (NAT) and XPO (XPO) have performed compared to their sector so far this year.
Here is how Nordic American Tankers (NAT) and Pacific Basin Shipping Ltd. (PCFBY) have performed compared to their sector so far this year.
Here is how Nordic American Tankers (NAT) and Pacific Basin Shipping Ltd. (PCFBY) have performed compared to their sector so far this year.
Nordic American Tankers (NAT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Nordic American Tankers Limited is rated a Strong Buy due to its attractive dividend policy and modern, Suezmax-focused fleet. NAT benefits from rising spot market dayrates, with 70% of its vessels exposed to these rates, positioning NAT for substantial earnings growth. Structural tanker market shortages, aging global fleets, and robust oil demand support higher rates and long-term upside for NAT.
NAT is the only company with 100% exposure to the Suezmax market. The Suezmax market continues to perform well. NAT rewards shareholders with strong payout rates, if it is performing well.
Nordic American Tankers reported disappointing Q1/2025 results, with the company underperforming peers by a wide margin and cash flow from operations turning negative. However, the weak operating performance was offset by a generous $0.07 quarterly cash dividend and persistent insider buying. During the quarter, NAT accelerated its fleet renewal efforts during the quarter, but still has to replace a sizeable number of 20+ year-old vessels sooner rather than later.
Nordic American Tankers (NAT) is a small-cap Suezmax tanker firm with a clean balance sheet and a history of consistent dividends. Despite recent poor share price performance, NAT's earnings are set to improve significantly due to rising Suezmax rates, making it a compelling buy. The supply of oil is increasing while the number of available ships remains fixed, creating a favorable market for NAT.
Nordic American Tankers operates 21 Suezmax oil tankers, has paid dividends for 110 consecutive quarters, and is positioned to benefit from potential global growth. The company has navigated a decade of overcapacity and slow growth, optimizing its fleet and continuing dividends, with insiders buying shares during price declines. Rising geopolitical tensions and underinvestment in new tankers have increased demand for existing fleets, making NAT a strong contrarian investment with a ~10% dividend yield.