- Accordingly, the Baltic Dry Index (BDI) – a proxy for global dry freight rates across 23 routes – surged to a 19-month high on April 21.
- The increase was mainly driven by higher rates for iron ore shipments between Brazil and China, and also from western Australia to China.
- On May 5, the BDI rose 57 points, with gains across capesize, panamax and supramax vessels.
A recent news article published in the Zacks reveals that shipping stocks are ripe for the picking.
Zacks Transportation
Given the above, the Zacks Transportation – Shipping industry (top 37% of Zacks-ranked industries) looks pretty good right now. The industry has returned 26.1% year to date.
And as the global economy bounces back from the pandemic, trading volumes should remain high, leading to continued strength in the industry in the foreseeable future.
As a result, the following Zacks Rank #1 (Strong Buy) stocks are worth picking up today-
Eagle Bulk Shipping Inc. EGLE
Eagle Bulk Shipping is the largest U.S. based owner of Handymax dry bulk vessels. Handymax dry bulk vessels range in size from 35,000 to 60,000 dwt, and transport cargoes like iron ore, coal, grain, cement and fertilizers.
This year, the company is expected to grow revenue and earnings by 58.9% and 299.1%, respectively.
The Zacks Consensus Estimate for the year jumped $4.06 (149.8%) in the last 30 days.
Euroseas Ltd. ESEA
Euroseas Ltd. consolidates the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 136 years.
Euroseas operates in the dry cargo, dry bulk and container shipping markets. Its management and operations are carried out by Eurobulk Ltd.
The company employs its vessels on spot and period charters and through pool arrangements.
This year, the company is expected to grow revenue and earnings by 46.5% and 674.1%, respectively.
The Zacks Consensus Estimate for the year jumped 93 cents (26.1%) in the last 30 days.
Genco Shipping & Trading Ltd. GNK
Genco Shipping & Trading Ltd. is a owns ships and transports iron ore, coal, grain, steel products and other dry bulk cargoes along shipping routes.
The company’s owned fleet consists of Capesize, Panamax, Ultramax, Supramax, Handymax and Handysize vessels.
This year, the company is expected to grow revenue and earnings by 39.1% and 722.9%, respectively.
The Zacks Consensus Estimate for the year jumped $1.31 (150.6%) in the last 30 days.
Navios Maritime Partners LP NMM
Piraeus, Greece-based Navios Maritime Partners L.P. is an international owner and operator of dry cargo vessels.
It transports dry bulk commodities like iron ore, coal, grains, fertilizers and charters its vessels under medium to long-term charters.
This year, the company is expected to grow revenue and earnings by 122.4% and 946.1%, respectively.
The Zacks Consensus Estimate for the year jumped $2.46 (35.9%) in the last 30 days.
Orient Overseas International Ltd. OROVY
Wanchai, Hong Kong-based Orient Overseas (International) Limited, through its subsidiaries, primarily offers container transport and logistics services, ports and terminals, and property investment.
It also provides freight management services, extensive domestic distribution services and supply-chain management.
Its container terminals form an integral part of its international containerized transportation business.
This year, the company is expected to grow revenue and earnings by 76.3% and $26.91, respectively.
The Zacks Consensus Estimate for the year jumped from $7.45 to $28.15 in the last 30 days.
Star Bulk Carriers Corp. SBLK
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk segment.
Star Bulk’s vessels transport iron ore, coal and grain as well as minor bulk loads such as bauxite, fertilizers and steel products.
Star Bulk is headquartered in Athens, Greece.
Currently, Star Bulk has an operating fleet of nine dry bulk carriers and is in a definitive agreement to acquire two more dry bulk carriers.
This year, the company is expected to grow revenue and earnings by 44.1% and 2041.2%, respectively.
The Zacks Consensus Estimate for the year jumped $1.33 (57.6%) in the last 30 days.
ZIM Integrated Shipping Services Ltd. ZIM
Based in Haifa, Israel, ZIM Integrated Shipping Services Ltd. along with its subsidiaries, provides container shipping and related services.
The company offers dry, reefer, project, out of gauge, breakbulk and dangerous cargo services; It also offers inland transport services.
This year, the company is expected to grow revenue and earnings by 39.7% and 96.0%, respectively.
The Zacks Consensus Estimate for the year jumped $2.18 (28.9%) in the last 30 days.
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Source: Zacks
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Source: Zacks
