11 Best Marine Shipping Stocks to Invest in Now

2. Matson, Inc. (NYSE:MATX)

Number of Hedge Fund Holders: 36

Matson, Inc. (NYSE:MATX) is engaged in the provision of ocean transportation and logistics services. Stephens analysts upped the company’s price objective to $175, up from the prior target of $165, while maintaining an “Overweight” rating. The adjustment came after the company’s strong Q4 2024 earnings, which exceeded expectations. Notably, Matson, Inc. (NYSE:MATX)’s 4Q 2024 EPS came in at $3.80. Moving forward, the company anticipates that elevated freight rates in its China service will persist into Q1 2025.

Beyond the first quarter, Matson, Inc. (NYSE:MATX)’s China service rates are expected to be driven by the timing of trade flow normalization in the Red Sea, as well as other geopolitical factors, supply chain activity, and the trajectory of the US economy. In the near term, Matson, Inc. (NYSE:MATX) expects continued economic growth in Alaska, aided by a low unemployment rate, job growth as well as continued oil and gas exploration and production activity. In Q4 2024, the operating income for the company’s Logistics segment sat at $10.1 million, or $1.2 million higher as compared to the level achieved in Q4 2023. The increase was mainly because of a higher contribution from supply chain management. The company anticipates Ocean Transportation operating income for Q1 2025 to be significantly higher than the $27.6 million witnessed in Q1 2024.

The London Company, an investment management company, released Q2 2024 investor letter. Here is what the fund said:

“Matson, Inc. (NYSE:MATX) – MATX ocean freight services are benefiting from rising shipping rates and improving market conditions. Global ocean freight pricing has been driven up by the ongoing disruption in the Red Sea, coupled with ramping peak season demand and healthier trade volumes. MATX’s success since the onset of the pandemic has led to permanent volume additions in the China trade lane, a transformed balance sheet. and significant share count reduction. MATX remains strategically positioned as a US Jones Act shipping operator and its expedited freight service continues to offer an attractive value proposition for its customers.”