ZIM to EGLA: Top five shipping stocks to explore in June

Highlights 

• ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a container shipping company. It has a dividend yield of 97.36%, with an annualized yield of US$11.40.
• Golden Ocean Group Limited (NASDAQ:GOGL) is a dry bulk shipping company. Its P/E ratio is 4.98, and its dividend yield is 23.41%.
• Eagle Bulk Shipping Inc. (NASDAQ:EGLE) operates in the shipping and logistics industry. It has a dividend yield of 11.62% and an annualized yield of US$8.0.

The shipping industry comprises companies engaged in transporting goods. These firms transport cargo by sea, air, and land. They also provide storage and logistics services.   

The volume of US imports at ocean ports rose 6.6% in the first quarter compared to the previous year, WSJ reported, citing an industry estimate. Here we discuss five shipping company stocks that rose more than 20% in one year and year-to-date.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Closing price on May 25, 2022: US$70.3

Haifa, Israel-based ZIM Integrated Shipping is an asset-light container liner shipping company. It offers specialized shipping solutions, including hazardous cargo, out-of-gauge cargo, and refrigerated cargo besides land transportation and logistical services. 

For the quarter ended March 31, 2022, its revenue increased 113% YoY to US$3.72 billion compared to US$1.74 billion in the same quarter a year ago. The increase was primarily due to improved freight rates and increased carried cargo volume.

The net income for Q1, 2022 was US$1.71 billion or US$14.19 per share diluted compared to US$0.590 billion or US$5.13 per share diluted for the first quarter of 2021.

The stock has a market capitalization of US$8.4 billion. Its P/E ratio is 1.47, and the forward P/E for one year is 1.70. It has a dividend yield of 97.36%, with an annualized yield of US$11.40.

ZIM stock traded in the range of US$91.23 to US$33.71 in the last 52 weeks.

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Star Bulk Carriers Corp. (NASDAQ:SBLK)

Closing price on May 25, 2022: US$31.89

Star Bulk Carriers Corp is a seaborne transportation solutions provider. Athens, Greece based company owns and operates dry bulk carrier vessels. These vessels are used to transport grains, fertilizers, iron ore, coal, bauxite, and steel products. 

For the first quarter of fiscal 2022, its voyage revenue increased to US$360.9 million from US$200.5 million in the same quarter of FY2021. The net income came in at US$170.36 million or US$1.67 per share diluted compared to US$35.76 million or US$0.36 per share diluted in Q1, fiscal 2021.

The stock has a market capitalization of US$3.27 billion. Its P/E ratio is 4.0, and the forward P/E for one year is 5.13. It has a dividend yield of 24.4% with an annualized yield of US$6.60.

SBLK stock traded in the range of US$33.88 to US$16.56 in the last 52 weeks.

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Golden Ocean Group Limited (NASDAQ:GOGL)

Closing price on May 25, 2022: US$15.53

Golden Ocean Group Ltd is a dry bulk shipping company based in Hamilton, Bermuda. Its transports dry bulk cargo, including grains, fertilizers, ores, coal, etc. Its fleet includes chartered vessels, commercial management vessels, and bareboat vessels.

For the first quarter ended March 31, 2022, its revenue was US$265.2 million compared to US$158.1 million in the same quarter a year ago. The net income was US$125.3 million or US$0.62 per share diluted compared to US$23.58 million or US$0.14 per share diluted for Q1, 2021.

The stock has a market capitalization of US$3.11 billion. Its P/E ratio is 4.98, and the forward P/E for one year is 6.36. It has a dividend yield of 23.41% and an annualized dividend of US$2.0.

GOGL stock traded in the range of US$16.40 to US$7.58 in one year.

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Genco Shipping & Trading Limited (NYSE:GNK)

Closing price on May 25, 2022: US$24.89

The New York-based Genco is an international shipping company. It owns and operates dry bulk carrier vessels to transport commodities, coal, grain, ore etc.

For the first quarter ended March 31, 2022, its revenue was US$136.2 million compared to US$87.59 million in the same quarter a year ago. Genco posted a net income of US$41.86 million or US$0.97 per share diluted compared to US$1.98 million or US$0.05 per share diluted for the March quarter of 2021.

The stock has a market capitalization of US$1.05 billion. Its P/E ratio is 4.8, and the forward P/E for one year is 5.26. It has a dividend yield of 12.88% with an annualized yield of US$3.16.

GNK stock traded in the range of US$26.00 to US$13.21 in the last 52 weeks.

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Eagle Bulk Shipping Inc. (NASDAQ:EGLE)

Closing price on May 25, 2022: US$68.99

Stamford, Connecticut-based Eagle Bulk Shipping owns and operates dry bulk vessels to transport grain, ore, pet coke, coal, fertilizer, cement etc. Its services include commercial operations, technical supervision, vessel maintenance & repair, vessel acquisition & sale, finance, accounting, treasury, legal, compliance, and insurance services.

For the quarter ended March 31, 2022, it reported a revenue of US$184.4 million compared to US$96.57 million in the previous year’s March quarter. The net income of the company was US$53.07 million or US$3.27 per share diluted compared to US$9.85 million or US$0.84 per share diluted. 

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The stock has a market capitalization of US$944.67 million. Its P/E ratio is 4.81, and the forward P/E for one year is 3.85. It has a dividend yield of 11.62% with an annualized yield of US$8.0. EGLE stock traded in the range of US$72.60 to US$36.18 in the last 52 weeks.

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Bottom line:

Though seaports are stretched to their limit, especially during holidays, analysts see the traffic easing this year as importers plan to stock goods ahead of the fall shopping season. Inflation, geopolitical tensions, and the pandemic have adversely impacted the industry.