(C) Reuters. Grab These 4 Buy-Rated Shipping Stocks Racing Higher
Even though a resurgence of COVID-19 cases hinders the shipping industry’s growth, the demand for shipping has been rising rapidly with industries reopening across the globe. So, it could be wise to scoop up soaring shipping stocks such as ZIM Integrated (ZIM), Danaos (NYSE:DAC), Euroseas (NASDAQ:ESEA), and EuroDry (NASDAQ:EDRY).Despite a significant supply and demand imbalance, exacerbated by a strained global supply chain amid the COVID-19 pandemic, most shipping operators have been witnessing solid demand lately. Investors’ interest in the shipping stocks is evident from the Breakwave Dry Bulk Shipping ETF’s (BDRY) 12.2% gain over the past month compared to the SPDR S&P 500 ETF’s (SPY) 0.8% loss.
Moreover, record freight rates due to solid post-pandemic global demand for manufactured goods are helping shipping companies expand their profit margins. The most recent surge in pricing of containers comes on the back of the Suez Canal blockage in March, which tied up approximately 321 ships for 14 days. According to a report by Grand View Research, the global shipping container market size is expected to expand at a CAGR of 12% from 2020 to 2028.
Given this backdrop, it could be wise to bet on fundamentally sound shipping companies ZIM Integrated Shipping Services Ltd. (ZIM), Danaos Corporation (DAC), Euroseas Ltd . (ESEA), and EuroDry Ltd. (EDRY) that are already rallying. Plus, they are rated ‘Buy’ in our proprietary POWR Ratings system and have plenty of upside left.
Grab These 4 Buy-Rated Shipping Stocks Racing Higher
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