5 Supply Chain Stocks to Buy Now According to Billionaire Jim Simons

1. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Renaissance Technologies’ Stake Value: $295 million

Percentage of Renaissance Technologies’ 13F Portfolio: 0.34%

Number of Hedge Fund Holders: 32

The number one on the list of 10 supply chain stocks to buy now according to billionaire Jim Simons is ZIM Integrated Shipping Services Ltd. (NYSE:ZIM). ZIM recently paid a quarterly dividend of $2.85 per share on June 8 to shareholders of record on May 31. 

On June 17, JPMorgan analyst Samuel Bland upgraded ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) to Neutral from Underweight with a price target of $53.30 from $43.60. Bland sees “asymmetric valuation risk” across the logistics sector.

Evermore Global Advisors discussed ZIM in their Q2 2021 “Evermore Global Value Fund” investor letter. Here’s what they had to say.

“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 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable 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 10 Dividend Stocks to Buy According to Kenneth Tropin’s Graham Capital Management and Top 5 Stock Picks of Michael Pausic’s Foxhaven Asset Management

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