Shipping companies are cargo movers that primarily engage in maritime shipping services. However, these companies sometimes move merchandise by air and land, too, especially for transporting goods between destinations that involve multi-modal transport. International maritime shipping is a major contributor to the global economy as shipping vessels transport essential energy commodities like fuel oils like diesel and crude oils, dry bulk goods such as grains and iron-ore, and finished manufactured products like electronics and autos. In addition, chemicals, fertilizers, pharmaceuticals, and various bulk and hazardous merchandise are among the commodities transported by the shipping companies. The shipping industry is a leading indicator of the global economy, and shipping company stocks have been underperforming since the pandemic disrupted global supply chains. But, here are some shipping stocks that have the best value, the right momentum, and ensure faster growth.
Best value shipping company stocks
Here are 4 good shipping company stocks that rank among the best value stocks.
ZIM Integrated Shipping Services Ltd (ZIM: NYSE)
The Israel-based shipping company provides maritime transportation and logistics service. The company offers a range of services, including cargo handling, multi-modal transportation, traffic management, and related services besides operating a fleet of vessels. The company ranks among the top 20 global carriers and has been operating since 1945, although it was listed in the New York Stock Exchange much later in 2021.
As we await the Q4 results of the company pending release on March 28, 2022, we can analyze the company performance based on the Q3 results as of September 30, 2021. The company’s revenue increased more than ten times compared to the same quarter in the previous year and going by year-on-year basis the revenue is more than treble. The revenue growth was triggered mainly from the revenues of containerized cargo resulting from an increase in volume and rise in freight rates. The net income of Q3 included a tax expense of $358 million.
Danaos Corporation (DAC: NYSE)
Danaos Corporation, a Greece-based company, is the largest independent owner of large-size modern containerships. The company charters the container ships on long-term contracts to the world’s largest liners at fixed rates. The growth prospects and the financial health of DAC stocks should give enough confidence to investors about the stocks outperforming the market. Current DAC earned Zacks No.1 rank, and in the next few months, the analysts expect an over the average return from the stocks. The DAC stocks are among the op-line stocks in the marine shipping industry and placed 78% above the other marine shipping stocks. As of February 14, 2022, DAC stock gained 1.52%, although S&P 500 was lower by -0.31%. While S&P500 gained 12.01% over a year, DAC has increased by 152.88%.
Navajos Maritime Partners LP (NMM: NYSE):
Navajos Maritime Partners LP, an international operator, and owner of tankers and dry vessels is a Greece based shipping company. The company operates its fleet worldwide and has a diversified customer base. The company will announce its Q4 results on February 17, 2022. According to the Q3 results announced on November 10, 2021, the revenue reached record levels as it more than tripled year-on-year. Net income of the unitholders grew by a whopping 23 times year-on-year. The growth drivers were a substantial increase in voyage revenues and time charter from the dry-cargo vessels operation.
Costamere Inc. (CMRE)
The Costamere Inc. (CMRE) is a Monaco-based shipping company that owns containerships and provides worldwide maritime services besides chartering its vessels to world-leading liner companies. At the beginning of 2022, on January 3, 2022, the company announced a quarterly dividend of $0.115 on common stock. Shareholders in the company’s books until January 20, 2022, have received the dividend. In addition, the company also declared dividends on many series of preferred shares.
Shipping stocks are likely to provide strong returns. The strong demand in the market due to the opening of the economy after the pandemic has given a massive push to many shipping company stocks, among which are the companies mentioned above. Besides the above companies, A.P. Moller -Maersk A/S (AMKBY: OTC) stocks attract investors. All these companies are experiencing huge revenue and volume growth.
