Tenaris SA (TS)

Tenaris SA manufactures and supplies steel pipe products. The firm operates through the following business segments: Tubes and Other. The Tubes segment includes the production and sale of both seamless and welded steel tubular products and related services mainly for the oil and gas industry, particularly oil country tubular goods used in drilling operations, and for other industrial applications with production processes that consist in the transformation of steel into tubular products. The Other segment includes all other business activities and operating segments, including the production and selling of sucker rods, industrial equipment, coiled tubing, heat exchangers, and utility conduits for buildings and the sale of energy and raw materials that exceed internal requirements. Its principal finished products are seamless and welded steel casing and tubing, line pipe and other mechanical and structural steel pipes for different uses. The company was founded in 1909 and is headquartered in Luxembourg. Tenaris S.A. (TS) closed the previous trading session at $20.68, gaining 0.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $29.97 indicates a 44.9% upside potential.

The average comprises 10 short-term price targets ranging from a low of $22.70 to a high of $34, with a standard deviation of $3.44. While the lowest estimate indicates an increase of 9.8% from the current price level, the most optimistic estimate points to a 64.4% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.

However, an impressive consensus price target is not the only factor that indicates a potential upside in @TS. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.