3 Shipping Stocks to Buy Now for a Stronger Portfolio
The Zacks Transportation - Shipping industry stands to benefit from positives like the reopening of the Chinese economy, an improvement in the demand scenario for goods and commodities from pandemic lows and favorable shipping rates.
The reopening of China’s economy has acted as a boon for the entire shipping industry as ocean shipping is hugely dependent on the country. It is a key manufacturing hub with a significantly high demand for goods and services, courtesy of its large population. With the shipping industry responsible for transporting the bulk of goods involved in global trade, the improvement in travel to and from China bodes well, as it increases the demand for vessels transporting various commodities like oil.
The upbeat demand for liquefied natural gas (LNG) represents a huge positive. The elevated levels of inflation raised oil and natural gas prices. Amid the prolonged Russia-Ukraine war, Europe is likely to seek gas supplies outside Russia. This is expected to drive demand for LNG vessels.
3 Shipping Stocksto Add to Your Portfolio
Given this encouraging backdrop, we present three shipping stocks, Ardmore Shipping Corporation ASC, GasLog Partners LP GLOP and Global Ship Lease, Inc. GSL, which investors can bet on.
The aforementioned stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy), a VGM Score of A or B and a solid expected earnings growth rate for the current year. These stocks have also witnessed upward estimate revisions in the past 90 days. Additionally, these stocks have a strong trailing four-quarter average earnings surprise history.
Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 or 2, offer the best investment opportunities for investors. The selected companies appear to seem compelling investment propositions at the moment.
Ardmore Shipping: This Pembroke-based company is engaged in the seaborne transportation of petroleum products and chemicals worldwide.
Ardmore Shipping sports a Zacks Rank #1 and has a VGM Score of B. The Zacks Consensus Estimate for ASC’s 2023 earnings per share (EPS) has increased 6.2% in the past 90 days. ASC has a trailing four-quarter earnings surprise of 3.52%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
ASC has a market capitalization of $508.24 million.
GasLog Partners: The company’s top line has been gaining from higher revenues from its vessels operating in the spot and short-term markets. A decrease in vessel operating costs (owing to a decline in crew costs) aids the bottom line.
GasLog Partners carries a Zacks Rank #2 and has a VGM Score of A. The Zacks Consensus Estimate for GLOP 2023 EPS has moved up 25.3% in the past 90 days. Its expected earnings growth rate for 2023 is 4.19%. GSL has a trailing four-quarter earnings surprise of 46.63%, on average.
GLOP has a market capitalization of $462.35 million.
Global Ship Lease: This London-based company owns and charters containerships under fixed-rate charters to container shipping companies.
GSL is being aided by the bullish sentiment surrounding the containership market. GSL’s strong balance sheet is an added positive. The uptick in trading volumes bodes well for Global Ship Lease.
The company carries a Zacks Rank #2 and has a VGM Score of B. The Zacks Consensus Estimate for GSL 2023 EPS has moved up 4.2% in the past 90 days. Its expected earnings growth rate for 2023 is 8.83%. GSL has a trailing four-quarter earnings surprise of 15.64%, on average.
GSL has a market capitalization of $679.14 million.
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Global Ship Lease, Inc. (GSL) : Free Stock Analysis Report
GasLog Partners LP (GLOP) : Free Stock Analysis Report
Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report
