Yearender: Top 5 shipping and logistics stocks of 2021

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Yearender: Top 5 shipping and logistics stocks of 2021

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 Highlights

  • Transport and logistics costs are likely to increase further amid supply chain issues.
  • Sino-Global Shipping America Ltd. (NASDAQ: SINO) stock gained 82.5% year-to-date.
  • Expeditors International of Washington, Inc. (NASDAQ: EXPD) has a P/E ratio of 18.74 and dividend yield of 0.89%. 

 Due to high demand and tight capacity, transport and logistics costs are likely to increase in the coming months. In addition, supply chain issues like port blockades at some of the critical terminals have further pushed the freight costs higher. According to industry veterans, maritime shipping companies are likely to increase the rates of their annual contracts next year. On the other hand, the trucking companies may witness double-digit growth in contracts. 

Shipping rates rose around 23% YoY in the US this year. Here we discuss five shipping and logistics stocks that gave more than 35% return year-to-date.

Also Read: Top 8 US vaccine stocks of 2021 

Sino-Global Shipping America, Ltd. (NASDAQ: SINO) 

 The Roslyn, New York-based shipping and logistics company provides customized services to customers. Its operating segments are Freight Logistics Services, Shipping Agency and Management Service, and Container Trucking Services.  

 For the nine months ended Sept 30, 2021, the company earned net revenue of US$1.79 million compared to US$1.14 million in the same period in 2020. The net loss attributable to the company was US$2.86 million versus US$0.733 million for the nine months of 2020.  

 The loss per share was US$(0.18) compared to US$(0.19) in the previous year nine months. 

The company has a market capitalization of US$61 million. Its stock traded in the range of US$12.28 and US$1.86 in the last 52 weeks and closed at US$3.76 on Dec 17, 2021. 

Also Read: Top 5 US bank stocks to watch amid Fed’s tapering of asset purchases

 

 Image Description: Top five shipping and logistics stocks of 2021. 

Also Read: Best US ETFs that returned over 55% in 2021  

Atlas Air Worldwide Holdings NEW (NASDAQ: AAWW) 

 The transportation company is based in Purchase, New York. It provides outsourced aircraft and aviation services. It operates a fleet of 747 freighters. Its customers include airlines, freight forwarders, express delivery providers, charter brokers, and the US military.  

 Atlas Air posted revenue of US$2.87 billion for the nine months ended Sept 30, 2021, compared to US$2.28 billion for the comparable period a year ago. The net income was US$316.6 million compared to US$176.3 million in the nine months of 2020. The EPS diluted increased to US$10.52 versus US$6.72 in the same period of 2020. 

The company has a market capitalization of US$2.53 billion. Its P/E ratio is 5.25, and the forward P/E ratio for one year is 5.02. Its stock price moved in the range of US$95.00 to US$50.22 in the last 52 weeks. It closed at US$87.3 on Dec 17, 2021.

Also Read: These 5 US stocks returned between 500% and 5,000% in 2021 

GXO Logistics, Inc. (NYSE: GXO)

The Greenwich, Connecticut-based GXO Logistics Inc. is a contract logistics company. It provides warehousing and distribution, e-commerce, reverse logistics, and other supply chain services, focusing on customized technology-enabled solutions at scale. 
 
Its revenue was US$5.68 billion for the nine months ended Sept 30, 2021, compared to US$4.43 billion in 2020. The net income attributable to the company improved to US$97 million against a net loss of US$59 million in the first nine months of 2020. The diluted EPS was US$0.84 against a loss per share of US$(0.51) in the year-ago period. 

GXO Logistics’ current market capitalization is US$9.56 billion, and the forward P/E one year is 44.53. Its stock traded in the range of US$105.92 to US$48.38 in the last 52 weeks. It closed at US$86.39 on Dec 17. 

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Forward Air Corporation (NASDAQ: FWRD) 

 The transportation company is based in Greenville, Tennessee. It provides services like fast freight, truckload, intermodal, final mile, shipment consolidation and deconsolidation, customer brokerage, warehousing, etc.

For the nine months ended Sept 30, 2021, the company earned an operating revenue of US$1.20 billion compared to US$0.919 billion in the corresponding period of 2020. The net income was US$65.39 million versus US$28.18 million in the year-ago period. Its net income per diluted share increased to US$2.37 from US$1.01 in the same period of 2020. 

It has a market capitalization of US$2.99 billion. Its P/E ratio is 50.42, and the forward P/E one year is 27.29. The stock has a dividend yield of 0.75%, with an annualized dividend of US$0.84. 

Its stock traded in the range of US$117.34 and US$70.93 in the last 52 weeks and closed at US$112.44 on Dec 17, 2021.

Also Read: Why Society Pass (SOPA) stock jumped 47% in pre-market on Monday?

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Expeditors International of Washington, Inc. (NASDAQ: EXPD)

The Seattle, Washington-based company provides non-asset-based, third-party logistics. It is focused on international freight forwarding. 

For the nine months ended Sept 30, 2021, its total revenue was US$11.13 billion compared to US$6.60 billion in the same period of 2020. The net income was US$962 million versus US$498 million in the corresponding nine months of 2020. The EPS diluted was US$5.68 in the first nine months of 2021 compared to US$2.96 in the same period of the previous year. 

Its market capitalization is US$21.46 billion, the P/E ratio is 18.74, and the forward P/E one-year ratio is 17.21. Its dividend yield is 0.89%, and the annualized dividend is US$1.16.

Its stock closed at US$129.93 on Dec 17, 2021. It moved in the range of US$137.80 to US$88.82 in the last 52 weeks.

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Bottomline

The shipping companies will have to either absorb the cost or pass it on to the customers. Generally, transportation accounts for around 7% of the goods’ cost. So, with the rising demand for goods, transportation companies are likely to see significant bottom-line growth. However, investors must analyze all the market factors before investing in stocks. 

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