Recent global economic tendencies indicate what’s just a little short of a historic disaster. After suffering through the greatest pandemic in recent history, calamity came in the shape of Russia’s invasion of Ukraine. This caused a tremendous imbalance in global economies, with oil and commodity prices reaching new highs.
Meanwhile, global supply networks are regaining traction after experiencing severe pain due to post-pandemic demand issues. The logistics sector is at the core of all supply chains. Inland transport tackles the railroad and trucking divisions, while the shipping portion deals with companies that transfer commodities via overseas cargo.
Market Research Future – a leading market analysis firm – provides the most promising research. The cargo transportation industry was valued at $13 billion in 2021, and it is expected to rise by a 5.2% CAGR (Compound Annual Growth Rate) to $22 billion by 2030.
Let’s take a peek at three shipping stocks I’ve picked based on their buy-rated performance and large dividends. The experts agree that these are wise and timely tickers for our portfolios:
ZIM Integrated Shipping Services Ltd (ZIM)
Zim Integrated Shipping Services Ltd (ZIM) is a publicly-traded Israeli international cargo shipping firm that ranks among the top 20 worldwide carriers. ZIM‘s headquarters are in Haifa, Israel, with a North American office in Norfolk, Virginia. ZIM, founded in 1945, began trading on the New York Stock Exchange in 2021. Its current CEO is Eli Glickman, and ZIM has around 4,200 employees. ZIM has over a hundred boats used to transport vehicles and other cargo.
ZIM’s financials say it all. Let’s start by noting that ZIM earned $3.7 billion in sales and $14.19 per share during its first fiscal quarter, setting a record and performing well above analyst projections on both measures. ZIM’s most recent earnings report beat EPS estimates by 8.10% and revenue by 6.42%. ZIM’s year-over-year growth looks great: Revenue of 113.06% and EPS of 176.61%. The consensus 12-month price projection for ZIM is 79.00, with a high of 120.00 and a low of 43.60. The median estimate reflects a 61.85% gain over the latest price, and ZIM comes with a no-brainer consensus buy rating. If you’re not yet convinced, ZIM has a whopping dividend yield of 45.80%, with an impressive quarterly shareholder payout of $5.59 per share.
Golden Ocean Group Ltd (GOGL)
Golden Ocean Group (GOGL) is a dry bulk shipping business established in Norway. In 2004, the firm was spun out from Frontline and listed on the Oslo Stock Exchange. John Fredriksen owns 35% of GOGL. There are 24 owned vessels, 22 hired vessels, 7 bareboat vessels, 10 vessels under commercial management, and 9 vessels sold on yard delivery in the fleet. The Norwegian business Golden Ocean Group Management AS, managed by Herman Billung, is in charge of GOGL‘s fleet management.
GOGL reported $265 million in sales and $0.62 in EPS for the first quarter, exceeding analyst expectations on both metrics. GOGL has bested analysts’ earnings forecasts for the last four consecutive quarters. GOGL shows robust year-over-year growth in crucial categories: revenue growth of 66.84%, diluted EPS growth of 342.86%, with net profit margin growth of 218.51%. Analysts project GOGL to continue its growth on both a quarterly and annual basis, including revenue and EPS in particular. The consensus price target for GOGL from analysts who provide 12-month predictions is 16.31, with a high of 23.00 and a low of 11.00. The consensus estimate is up 30.71% from current pricing, and GOGL has done well to earn the respect of analysts, who give it a solid buy rating. GOGL has a dividend yield of 16.04%, with a quarterly payout of 50 cents per share.
Genco Shipping & Trading Ltd (GNK)
Genco Shipping & Trading Ltd (GNK) is an international ship-owning company that engages in the transportation of iron ore, coal, grain, steel products, and other dry bulk cargoes. GNK operates through the drybulk carrier vessels segment to manage ocean transportation of drybulk cargoes worldwide. GNK has a total capacity of more than four million tons and runs some of the world’s largest ships. GNK was founded on September 27th, 2004, and is headquartered in New York, NY.
For the fiscal first quarter, GNK reported $136 million in sales and $0.97 in EPS, above analyst projections in both categories. EPS and revenue were beaten by 1.36% and revenue by 4.08%, respectively. Like its peers on this list, GNK has had a very successful track record regarding its performance vs. quarterly earnings forecasts. GNK boasts some remarkable year-over-year numbers: revenue growth of 55.53%, EPS growth of 1,840%, and net profit margin growth of 1,248.02%. The consensus price objective for GNK from analysts that provide 12-month predictions is 29.15, with a high of 37.00 and a low of 19.00. The median estimate is up 43.17% from its previous price, and the consensus is behind a strong buy rating for GNK that should appeal nicely to investors. GNK currently has an annual dividend yield of 15.54%, with a quarterly payout of 79 cents per share.
