In this article, we discuss the 5 best shipping and container stocks to buy. If you want our detailed analysis of these stocks, go directly to 10 Best Shipping and Container Stocks To Buy.
5. Costamare Inc. (NYSE:CMRE)
Number of Hedge Fund Holders: 17
Costamare Inc. (NYSE:CMRE) is one of the biggest shipping companies in the world with a fleet of 78 containerships and 37 dry bulk vessels. The Monaco-based international containership company ranks fifth on the list of 10 best shipping and container stocks to buy.
More hedge funds backed Costamare Inc. (NYSE:CMRE) in the second quarter of 2021. With a $28.2 million stake in Costamare Inc. (NYSE:CMRE), Renaissance Technologies owns 2.39 million shares of the company as of the end of the June quarter. Of the 873 elite funds tracked by Insider Monkey, 17 were long Costamare Inc. (NYSE:CMRE) at the end of the second quarter up from 12 in the first quarter of 2021.
On September 8, Citi analyst Christian Wetherbee kept a Buy rating on Costamare Inc. (NYSE:CMRE) following Q2 earnings. Wetherbee raised his price target for the stock to $19 from $14.50.
4. Global Ship Lease, Inc. (NYSE:GSL)
Number of Hedge Fund Holders: 18
Global Ship Lease, Inc. (NYSE:GSL) operates a fleet of 65 containerships. The London-based company leases mid-size Post-Panamax and smaller containerships to container shipping companies. With the continued global demand for containerized ships, shares of Global Ship Lease, Inc. (NYSE:GSL) soared 96%, year to date.
The company, which ranks fourth on the list of 10 best shipping and container stock to buy, offers an attractive dividend yield of 4.30% to its shareholders. As of the end of the second quarter, 18 hedge funds tracked by Insider Monkey reported owning stakes in Global Ship Lease, Inc. (NYSE:GSL). The total worth of these stakes is $97 million. This shows the hedge fund sentiment is positive for the ship-leasing company as 11 funds had stakes in the company in the previous quarter, having a total worth of $48 million.
3. Danaos Corporation (NYSE:DAC)
Number of Hedge Fund Holders: 18
With a dividend yield of 2.70%, Danaos Corporation (NYSE:DAC) ranks fourth on the best shipping and container stocks to buy. The company pays its shareholders an annual dividend of $1 per share.
The Greek shipping company boasts a fleet of 71 container vessels ranging from 2,200 TEU to 13,100 TEU. In the second quarter of 2021, Danaos Corporation (NYSE:DAC) announced a 25.3% increase in operating revenues totaling $146.6 million. Shares of Danaos Corporation (NYSE:DAC) soared 777% in the past twelve months and increased 248%, year to date.
At the end of the second quarter of 2021, 18 hedge funds held stakes in Danaos Corporation (NYSE:DAC) worth $163 million. This is compared to 12 hedge funds in the previous quarter, with stakes worth $122 million.
2. Genco Shipping & Trading Limited (NYSE:GNK)
Number of Hedge Fund Holders: 19
The New York-based shipping company primarily operates dry bulk vessels used to transport grains, coal, iron ore, and steel. Overall, 19 funds of the 873 elite funds tracked by Insider Monkey reported owning stakes in the company at the end of June 2021, down from 22.
On September 13, H.C. Wainwright analyst Magnus Fyhr initiated a Buy rating on Genco Shipping & Trading Limited (NYSE:GNK). The analyst sees good vessel profitability in the coming year backed by moderate demand growth in the dry bulk market. The analyst set a $30 price target for the shipping stock. The stock gained 161% in the past twelve months.
Genco Shipping & Trading Limited (NYSE:GNK) established a new joint venture with Singapore-based The Synergy Group in August. The joint venture, GS Shipmanagement Pte. Ltd., will operate eight of its vessel fleet alongside Synergy’s container ships, tankers, dry bulk vessels, and LNG vessels, which will be launched in the third quarter.
1. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 25
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli shipping company that offers cargo transportation services. The company also provides digital services such as cargo tracking services, shipment booking, and a mobile shipment management app.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) has prospered in recent months as a result of significant increases in container shipping rates and carried volume. The stock gained 28% in the past three months. The company’s revenue in the second quarter came in at $2.38 billion, representing a 200% year-over-year growth. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) tops the list of 10 best shipping and container stocks to buy.
Samuel Bland of JPMorgan on October 5 gave an Underweight rating on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) with a $46.02 price target. On the other hand, hedge funds are looking more positive about the shipping stock. Of the 873 elite funds tracked by Insider Monkey, 25 were long ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) at the end of June, up from 14 in the first quarter of 2021.
New York-based investment management firm King Street Capital is the leading stakeholder of the company with 1.23 million shares worth $55 million.
In the Q2 2021 investor letter of Evermore Global Advisors, the fund mentioned ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) and discussed its stance on the firm. Here is what the fund said:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 fullyear EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizeable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
You can also take a peek at the 10 Stocks With Over 30 Years of Dividend Hikes and 10 Monthly Dividend Stocks With Over 5% Yield.
