10 Best Marine Shipping Stocks to Buy According to Analysts

3. Star Bulk Carriers Corp. (NASDAQ:SBLK

Upside Potential: 73.38%

Number of Hedge Fund Investors: 24

Stock Price as of December 24: $15.25

Star Bulk Carriers Corp. (NASDAQ:SBLK) is one of the largest dry bulk shipping companies in the world, operating a diverse fleet of vessels that transport commodities such as iron ore, coal, and grain. The company operates a diverse fleet of 156 vessels across all segments, with an average age of 11.9 years.

Star Bulk Carriers Corp. (NASDAQ:SBLK) has demonstrated a strategic approach to growth through a series of acquisitions and fleet optimizations. Since 2018, the company has completed nine mergers and has significantly expanded its fleet by 75% in terms of vessel numbers. These acquisitions, including the recent integration of Eagle Bulk, have increased the company’s market presence as well as enhanced operational synergies and cost efficiencies. The integration of Eagle Bulk has resulted in over $9 million in cost savings, with further potential for savings in operating expenses (OpEx) and dry dock costs.

Star Bulk Carriers Corp. (NASDAQ:SBLK) continues to opportunistically sell older and less efficient vessels, using the proceeds to buy back shares at prices below their net asset value (NAV). This strategy has allowed the company to deleverage, reducing its net debt per vessel by more than 50% and ensuring that the scrap value of its fleet comfortably covers current net debt. Finally, the company owns six debt-free vessels with an aggregate market value of more than $100 million.