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10 Best Shipping Companies Stock

Skylar Shaw

May 13, 2022 17:52

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Global goods trade volume is predicted to expand by 10.8% in 2021, followed by a 4.7 percent gain in 2022, according to a new World Trade Organization forecast, which bodes well for the shipping sector. Danaos Corporation (NYSE: DAC), A.P. Møller - Mærsk A/S (OTC: AMKBY), Costamare Inc. (NYSE: CMRE), and Zim Integrated Shipping Services Ltd. are among the shipping and container companies benefitting from the robust market demand (NYSE: ZIM).


Due to increased global commerce, global shipping businesses have witnessed a tremendous increase in volume and income in recent quarters. The ongoing growth of the e-commerce sector is a major driver of the shipping industry's upward trajectory. According to a Q2 shipping industry research, global trade volumes increased by 4% in Q2, returning to pre-COVID levels of trend growth.


Apart from the growing demand for ships and containers, experts are positive about Shipping companies stock, expecting a rise in ship value due to global vessel supply constraints. According to TS Lombard, shipping stock prices are projected to grow as the value of vessels rises, boosting the net asset value of shipping businesses.

A.P. Møller - Mærsk A/S (OTC:AMKBY)

The container logistics business A.P. Møller - Mærsk A/S (OTC: AMKBY) is situated in Denmark and comes tenth on our list of the top shipping and container stocks to purchase. In over 130 countries, the firm provides worldwide container transportation services. A.P. Møller - Mærsk A/S (OTC: AMKBY) shares have risen 31% year to date, indicating that the Danish shipping firm is doing well.


Morgan Stanley analyst Carolina Dores maintained an Overweight rating on A.P. Møller - Mærsk A/S (OTC: AMKBY) on October 28 and increased her price objective to DKK 23,300 from DKK 19,500.


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Hapag-Lloyd Aktiengesellschaft (Hapag-Lloyd) (OTC:HPGLY)

Hapag-Lloyd Aktiengesellschaft (OTC:HPGLY) is a major shipping company with 250 contemporary ships. It comes ninth on our list of the top 10 shipping and container stocks to purchase. Hapag-Lloyd Aktiengesellschaft (OTC: HPGLY) transports a wide range of goods by sea, including food, drinks, chemicals and polymers, autos, electronics, and medicines. Dry, reefer and special cargo containers are among the cargo containers offered by the German shipping firm.


Hapag-Lloyd Aktiengesellschaft (OTC: HPGLY) has seen its stock rise 211 percent in the last year. The company's sales in the second quarter of 2021 were $5.42 billion, up 57 percent year over year.

Euroseas Ltd.(NASDAQ: ESEA)

Euroseas Ltd. (NASDAQ: ESEA) best shipping and container stock to buy, with a fleet of 15 boats that carry dry and refrigerated containerized commodities. Euroseas Ltd. (NASDAQ: ESEA) stock has been up 474 percent year to date.


In September, Euroseas Ltd. (NASDAQ: ESEA) bought the M/V Piraeus Trader, a 1,740 TEU container feeder, from UK-based Lomar Shipping for $25.5 million and inked a three-year time charter contract for around $26,700 per day net. On September 9, Maxim analyst Tate Sullivan maintained a Buy recommendation on Euroseas Ltd. (NASDAQ: ESEA) after the purchase. Sullivan upped the stock's price objective to $42 from $38.


Hedge funds are also starting to get excited about the Greek containership stock. At the end of June, 5 of  873 top funds were long Euroseas Ltd. (NASDAQ: ESEA), up from 1 in the first quarter of 2021. Renaissance Technologies is the company's largest shareholder, owning 127,242 shares worth $2.93 million as of the second quarter.


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Seanergy Maritime Holdings Corp.(NASDAQ: SHIP)

Seanergy Maritime Holdings Corp., located in Athens, is ranked seventh on our list of the top ten shipping and container stocks to purchase (NASDAQ: SHIP). Maxim analyst Tate Sullivan raised the shipping stock from Hold to Buy in October. Seanergy Maritime Holdings Corp. (NASDAQ: Cargofinancial )'s sheet has improved significantly, according to the analyst, and the business is well-positioned to profit from the growing demand for dry bulk ship carriers. SHIP has a price objective of $2.50, according to Sullivan.


In the years 202-2021, Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) will operate a fleet of 17 boats that will transport roughly 14.2 million tons of iron ore and coal cargo. Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) shares rose 2.29 percent pre-market on October 19 after striking a formal deal with an unaffiliated third party to buy a Capesize vessel, to be renamed M/V Dukeship, for $34.3 million.


With a $2.59 million investment, London-based hedge fund Marshall Wace LLP is the company's largest shareholder as of the second quarter. At the end of June 2021, 6 of the 873 top funds monitored by Insider Monkey reported having shares in the Athens-based firm.

Matson, Inc. (NYSE: MATX)

Matson, Inc. (NYSE: MATX), a Hawaii-based shipping and logistics firm, is ranked sixth among the top ten shipping and container stocks to purchase. Matson, Inc. (NYSE: MATX) is one of the most dependable shipping businesses in Alaska, Micronesia, Guam, and the South Pacific, with over 130 years of expertise.


Despite the fact that hedge funds' holdings in Matson, Inc. (NYSE: MATX) decreased in the second quarter, the firm remains a favorite container and ship stock among institutional investors. 14 of the 873 funds monitored by Insider Monkey held interests in the firm at the end of June, compared to 19 in the previous quarter.


Stifel's Benjamin Nolan maintained a Buy rating on Matson, Inc. (NYSE: MATX) on October 12 and raised his price target to $92 from $80.

Costamare Inc. (NYSE: CMRE)

With a fleet of 78 containerships and 37 dry bulk vessels, Costamare Inc. (NYSE: CMRE) is one of the world's largest shipping businesses. The worldwide containership firm located in Monaco is ranked fifth among the top ten shipping and container stocks to purchase.


In the second quarter of 2021, more hedge funds supported Costamare Inc. (NYSE: CMRE). Renaissance Technologies owned 2.39 million shares of Costamare Inc. (NYSE: CMRE), worth $28.2 million as of the end of the June quarter. At the end of the second quarter, 17 of the 873 top funds monitored by Insider Monkey were long Costamare Inc. (NYSE: CMRE), up from 12 in the first quarter of 2021.


Following Q2 results, Citi analyst Christian Wetherbee maintained a Buy recommendation on Costamare Inc. (NYSE: CMRE) on September 8. Wetherbee upped the stock's price objective to $19 from $14.50.


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Global Ship Lease, Inc. (NYSE: GSL).

Global Ship Lease, Inc. (NYSE: GSL) has 65 containerships in its fleet. Container shipping firms rent mid-size Post-Panamax and smaller containerships from the London-based corporation. Worldwide Ship Lease, Inc. (NYSE: GSL) stock has skyrocketed 96 percent year to date, thanks to continuing global demand for containerized ships.


The firm, which ranks fourth among the top ten best shipping and container stocks to buy, pays a 4.30 percent dividend to its shareholders. Global Ship Lease, Inc. was owned by 18 hedge funds monitored by Insider Monkey at the end of the second quarter (NYSE: GSL). These holdings are worth a total of $97 million. This indicates that hedge funds are bullish on the ship-leasing firm since 11 funds owned positions in the company in the previous quarter, totaling $48 million in value.

Danaos Corporation (NYSE:DAC)

Danaos Corporation (NYSE: DAC) ranks fourth among the finest shipping and container companies to buy, with a dividend yield of 2.70 percent. The corporation provides a $1 per share yearly dividend to its stockholders.


The Greek shipping firm has a fleet of 71 container ships with capacities ranging from 2,200 to 13,100 TEU. Danaos Corporation (NYSE: DAC) reported a 25.3 percent rise in operating sales to $146.6 million in the second quarter of 2021. Danaos Corporation (NYSE: DAC) stock has been up 777 percent in the last year and is up 248 percent year to date.


Eighteen hedge funds had $163 million in Danaos Corporation (NYSE: DAC) at the end of the second quarter of 2021. This compares to 12 hedge funds with $122 million in investments in the previous quarter.


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Genco Shipping & Trading Limited (NYSE: GNK) 

Dry bulk boats deliver grains, coal, iron ore, and steel, according to the New York-based shipping business. At the end of June 2021, 19 of the 873 top funds monitored by Insider Monkey reported having shares in the firm, down from 22 the previous year.


H.C. Wainwright analyst Magnus Fyhr set a Buy rating on Genco Shipping & Trading Limited on September 13. (NYSE: GNK). In the following year, the analyst expects solid vessel profitability, underpinned by a modest demand increase in the dry bulk sector. For the shipping stock, the analyst set a price objective of $30. In the last year, the stock has risen 161 percent.


In August, Genco Shipping & Trading Limited (NYSE: GNK) formed a new joint venture with The Synergy Group of Singapore. Synergy's container ships, tankers, dry bulk boats, and LNG vessels will be launched in the third quarter, and the joint venture, GS Shipmanagement Pte. Ltd., will operate eight of its vessel fleet alongside Synergy's container ships, tankers, dry bulk vessels, and LNG vessels.

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM)

The Israeli shipping business ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) provides cargo transportation services. In addition, the organization offers digital services, including cargo monitoring, shipment booking, and a mobile shipment management app.


Significant gains in container shipping prices and carried volume have benefited ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) in recent months. In the last three months, the stock has increased by 28%. The company's sales in the second quarter were $2.38 billion, showing a 200 percent increase year over year. The finest shipping and container stocks to purchase are ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) and ZIM Integrated Shipping Services Ltd. (NYSE: ZIM).


JPMorgan analyst Samuel Bland gave ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) an Underweight rating and a $46.02 price target on October 5. Hedge funds, on the other hand, are more optimistic about the shipping stock. At the end of June, 25 of  873 top funds were long ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), up from 14 in the first quarter of 2021.


With 1.23 million shares worth $55 million, New York-based investment management firm King Street Capital is the company's largest shareholder.


Evermore Global Advisors cited ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) in its Q2 2021 investor letter and detailed its position on the company. Here's what the Fund had to say:


"During the second quarter, ZIM Integrated Shipping Services (ZIM) contributed the most to the Fund's performance. ZIM is an Israeli containership operator with a market capitalization of $5.2 billion that went public on the New York Stock Exchange in January. As a reminder, one of the new investments we started during that time was ZIM, which we addressed extensively in our Q1 2021 quarterly discussion.


Several noteworthy things occurred in the second quarter. ZIM continued to produce very high cash flows because of its unique asset-light business model and focused global specialty strategy. ZIM had around $1.25 billion in cash and $915 million in net debt at the conclusion of the quarter. The firm enhanced its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023, owing to its solid operating performance. ZIM was no longer subject to certain dividend limitations as a result of the early redemption of the unsecured notes and therefore announced a special dividend of $2 per share, payable on September 15 (goes ex on August 24). Finally, management raised its full-year EBITDA projection for 2021 from $1.4 to 1.6 billion to $2.5 to $2.7 billion, a significant rise above the levels indicated in March. To that end, we remain confident in our ZIM position."


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Should You be Interested in Shipping Stocks?

People all throughout the globe, and particularly in the United States, have been affected by supply chain disruptions in recent months. Economists and industry experts predict that shipping bottlenecks at major U.S. ports, as well as the consequent commodities shortages and price hikes, will last until far into 2022. Goldman Sachs, for example, said that 77 ships carrying $24 billion in cargo are awaiting docking at Los Angeles and Long Beach, California. In September, roughly a third of containers lingered for more than five days before being transported out, while the number of containers offloaded in Long Beach and Los Angeles fell by 9.1% and 3.6 percent, respectively.


President Biden has ordered ports to remain open 24 hours a day to assist relieve the crisis, but this has only made a marginal difference. Shipping a container through major US ports now takes three times as long as it would usually. In addition, the president's directive was hampered by continued labor shortages and a lack of cooperation among actors in the U.S. supply chain.


These pressures are affecting the economy, placing pressure on businesses ranging from grocery shops to large factories. Consumer and wholesale prices have risen dramatically, indicating that the Christmas season will be inflationary. Last Friday, Federal Reserve Chairman Jerome Powell said that inflation has persisted longer than projected and would most certainly continue into next year but that it has not reached a level that necessitates significant policy tightening. Meanwhile, customers will pay more and have less access.


"Backlogs and increased shipping costs are expected to linger at least into the middle of next year," Goldman Sachs economist Ronnie Walker said, "since no quick remedy for the underlying supply-demand mismatch at U.S. ports is available." "Relief might come at some point," he added. As we navigate through the continuing seasonal high in shipping demand ahead of the Christmas season, the pressures should begin to subside significantly."


Firms have been obliged to discover strategies to keep their goods flowing in the face of these interruptions. This problem has been identified as one of the causes of decreased revenue expectations in third-quarter 2021 earnings releases. "This is a terrific problem to have, but it puts more pressure on our supply chain at a time when the sector is dealing with labor shortages, material supply concerns, transportation cost, and congestion issues," said Sean Connolly, CEO of packaged food firm Conagra.