10 Worst Middle East and Africa Stocks To Buy According to Short Sellers

2. ZIM Shipping (NYSE:ZIM)  

Short Interest as % of Shares Outstanding: 17.00%

Number of Hedge Fund Investors in Q2 2024: 26 

ZIM Shipping (NYSE:ZIM) is an Israeli company that specializes in containerized cargo shipping. The company operates one of the largest shipping networks in the world and provides a full range of shipping solutions to more than 32,000 customers at approximately 300 ports  in 90 countries.

In the first half of 2024, ZIM Shipping (NYSE:ZIM) reported that its revenues increased 30% year-over-year to $3.5 billion, due to an increase in average freight rates, which stood at $1,674 per TEU in Q2.  In Q2, ZIM Shipping’s (NYSE:ZIM) carried volume increased to 952,000 TEU, marking an 11.7% increase compared to the same quarter last year and a 13% increase compared to the first quarter of 2024. ZIM Shipping (NYSE:ZIM) has a fleet of 148 vessels, including 132 container ships and 16 car carriers, and has a capacity of 755,000 TEUs.

The company is replacing its older vessels with larger, new-builds through its fleet renewal program, of which 38 of the 46 new-build container ships have already been delivered. These new vessels are fuel-efficient as they use liquefied natural gas (LNG) and are better suited for the company’s trade routes. This helps the company to reduce costs, and improve fuel efficiency.

While 17% of the companies shares are shorted, 26 hedge funds have maintained a bullish sentiment on the stock as of the second quarter, with stocks worth $455.13 million. D E Shaw is the largest shareholder in the company, holding $107.43 million worth of stock as of June 30. Industry analysts expect the company to grow its earnings by 100% this year and maintain a consensus Buy rating, with an average price target of $20.03, representing a 12.5% upside potential from its current levels.