OceanPal Inc. (OP) in Athens, Greece, provides ocean-going transportation services worldwide. The company spun off from its parent company Diana Shipping Inc. (DSX), on Nov. 29, 2021. Since the beginning of the year…
OP has been losing momentum owing to the omicron scare, which has been aggravated by worsening supply chain disruptions, rising inflation, and geopolitical tensions. OP stock has slumped 65.6% in price year-to-date and 85.8% over the past year.
However, the global shipping industry is expected to grow rapidly in the coming months, driven by sustained demand, persistent supply chain disruptions, rapid digitization, and automation in shipping and logistics services. Shipping prices are soaring due to the Russia-Ukraine war , which should boost the profit margins of fundamentally sound shipping companies.
Given this backdrop, we think it could be profitable to add quality shipping stocks A.P. Møller – Mærsk A/S (AMKBY – Get Rating), ZIM Integrated Shipping Services Ltd. (ZIM – Get Rating), Matson, Inc. (MATX – Get Rating), and Triton International Limited (TRTN – Get Rating) to one’s portfolio.
A.P. Møller – Mærsk A/S (AMKBY – Get Rating)
AMKBY is an integrated transport and logistics company. It is headquartered in Copenhagen, Denmark. The company operates in four segments: Ocean; Logistics & Services; Terminals & Towage; and Manufacturing & Others. AMKBY offers terminal handling, container and transshipment services, sea and air freight forwarding, supply chain management, cold chain logistics, and custom services.
Last December, AMKBY acquired LF Logistics Holding Limited, a leading omnichannel fulfillment contract logistics company in the Asia Pacific. With the acquisition, AMKBY might expand its contract logistic capabilities and boost its revenue streams.
In its fiscal 2021 fourth quarter, ended Dec. 31, 2021, AMKBY’s revenue increased 64.4% year-over-year to $18.51 billion. The company’s EBITDA grew 194.7% year-over-year to $7.99 billion. AMKBY’s profit before tax rose 375.9% year-over-year to $6.29 billion. The company’s profit for the period increased 369.6% from the prior-year period to $6.11 billion. And AMKBY’s EPS from continuing operations grew 389.4% year-over-year to $323.
Analysts expect AMKBY’s revenue for its fiscal year 2022 first quarter, ending March 31, 2022, to come in at $18.82 billion, representing a 51.3% rise year-over-year.
The stock’s price has improved 39.3% over the past year. AMKBY closed Friday’s trading session at $15.76.
AMKBY’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which translates to Strong Buy in our proprietary system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
AMKBY has a grade of A for Growth and Momentum. It has a B grade for Value and Quality. Within the B-rated Shipping industry, it is ranked #1 of 48 stocks.
To see additional POWR Ratings (Stability and Sentiment) for AMKBY, click here.
ZIM Integrated Shipping Services Ltd. (ZIM – Get Rating)
ZIM offers container shipping and related services in Israel and internationally. The company is headquartered in Haifa, Israel. It provides seaborne transportation and logistics services, inland transport services, and cargo tracking services. ZIM operates a fleet of more than 110 container vessels and eight vehicle transport vessels.
On February 10, ZIM announced a new charter agreement with Navios Maritime Partners L.P. ZIM agreed to charter 13 container vessels, including five secondhand vessels and eight newly built vessels. This agreement is expected to…
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