Why is ZIM shipping stock falling?
Concerns mount over freight rates. Shipping stocks led by ZIM Integrated Shipping (NYSE:ZIM) sank in Wednesday's trading as J.P. Morgan analysts said they anticipate a slowdown in freight traffic will hurt the sector and singled out the company as a stock that will underperform, according to Bloomberg.
The financial health and growth prospects of ZIM, demonstrate its potential to outperform the market. It currently has a Growth Score of A. Recent price changes and earnings estimate revisions indicate this stock lacks momentum and would be a lackluster choice for momentum investors.
The 7 analysts offering 12-month price forecasts for ZIM Integrated Shipping Services Ltd have a median target of 70.00, with a high estimate of 120.00 and a low estimate of 40.00. The median estimate represents a +33.59% increase from the last price of 52.40.
ZIM Integrated Shipping Services has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on 1 buy rating, 4 hold ratings, and 1 sell rating.
Shipping stocks are falling on Wednesday as the dry bulk transportation market suffers from demand issues. The big news here is that the demand for dry bulk shipping is pulling several stocks in the space lower.
Business in the shipping industry across the board has been booming due to an increase in shipping rate charges, primarily caused by the congestion of the supply chain. For ZIM, the company boosted its revenues by 113% YoY while its operating income grew by 60% to $2.2B.
Zim Integrated Investment Opportunity
36 of all equities and portfolios are less risky than Zim Integrated. Compared to the overall equity markets, volatility of historical daily returns of Zim Integrated Shipping is lower than 36 () of all global equities and portfolios over the last 90 days.
zim is a great company to work for.
You were always kept busy with telephone calls, customer service and problem solving. The co workers were from all walks of like. Convincing customers that empty containers need to be returned back within 21 days. Sharing with co workers information that know.
The takeaway here is that in spite of the projected 34% dividend yield in 2022 (which seems aggressive), the stock might not be a buy because of the likely multiple compression that will take place as the business environment normalizes.
But ZIM is a good dividend stock based on criteria such as dividend payout ratio, dividend yield, and dividend safety. ZIM is a Buy, considering that it is both a good long-term investment and an attractive dividend play.
How many shares of ZIM are there?
Share Statistics
ZIM has 119.95 million shares outstanding. The number of shares has increased by 5.18% in one year.
ZIM, which in the past year has become the most profitable company in Israel, reports a threefold increase in quarterly net profit, from $590 million in the first quarter of 2021 to $1.7 billion in the first quarter of 2022, which is similar to the profit reported for the previous quarter.
Dividend Summary
There are typically 4 dividends per year (excluding specials).
ZIM operates 88 ships but only owns one.
Construction of Seaspan's ten LNG “green” boxships begins
In October 2021, ZIM revealed that the firm acquired seven secondhand boxships, five of which have the capacity of 4,500 TEU while the other two are 1,100 TEU containerships, in contracts that amount up to $320 million.
