There is no doubt that the United States is in recession and at such a time it is almost certainly going to bring about a degree of uncertainty in global trade. Hence, it is perhaps no surprise that many of the shipping stocks have recorded significant losses over the course of the year so far. That being said, it is also true that when it comes to global trade, the shipping industry is the biggest player in town and as much as 90% of worldwide trade is facilitated through the maritime route. Hence, there may be an opportunity for enterprising investors if they start tracking shipping stocks. This article is going to give you a quick look into three shipping stocks that could be worth tracking.
AP Moeller Maersk (OTCMKTS:AMKBY) – In recent times, the stock has suffered considerably owing to a downgrade by analysts and had clocked a decline of as much as 30% in the month of September. However, at the same time, it is necessary to note that when it comes to its sector, it is the biggest player.
AP Moeller Maersk owns as many as 700 ships and at the same time, it enjoys a market share of a staggering 16.7%. It boasts of clients like Nike, Walmart, and Unilever. On the other hand, in its latest earnings report, AP Moeller Maersk recorded a year-on-year revenue gain of 52% and a 138% year-on-year rise in earnings per share.
ZIM Integrated Shipping (NYSE:ZIM) – As the forecast for shipping rates continues to slip, many of the stocks in the sector are suffering as well and ZIM Integrated Shipping is no exception. In September, the stock had declined by as much as 42%.
However, it should be noted that ZIM Integrated Shipping has continued to produce strong growth year on year in terms of revenues. While it is true that the company’s revenues are expected to decline in the coming half a decade, it is not expected to stay at the pre-pandemic levels.
Global Ship Lease (NYSE:GSL) – TheGlobal Ship Lease stock is down 32% so far in 2022. The business model of the company is somewhat different. It owns ships of varying sizes and is involved in chartering them to companies like Maersk for a fixed fee contract lasting two to five years.
Analysts believe that this allows Global Ship Lease to manage its risks. While the stock may be performing poorly amidst the doom and gloom, it should be noted that it has a P/E ratio of only over 2x earnings. Additionally, the dividend yield is more than 9.5%.