Is ZIM Integrated Shipping Services (ZIM) Mirroring Wall Street Downturn?

We recently published a list of 10 Companies Mirror Wall Street Downturn. In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against other companies mirroring Wall Street downturn.

Wall Street’s main indices finished the shortened trading week in the negative territory, dampened by labor market data that came in much hotter than expected. The news fueled concerns that the Federal Reserve will not slash interest rates again.

Both the Dow Jones and the Nasdaq Composite dived by 1.63 percent on Friday, while the S&P 500 declined by 1.54 percent.

Ten companies mirrored a wider market downturn amid a series of catalysts that dampened investing appetite. This article explores the reasons behind their decline.

In Friday’s biggest losers, we only considered the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A fleet of vessels docking at a busy harbor, signaling the company’s presence in global marine shipping.

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Shares of ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) dropped for a second day on Friday, losing 7.87 percent to end at $19.09 apiece as investor sentiment was dampened by the growing trade tensions globally.

With the trade war, shipping companies such as ZIM Integrated Shipping Services (NYSE:ZIM) stand to bear the brunt of higher operating costs, lower global trade volumes, and shipping rates, should country leaders impose higher trade tariffs.

Earlier, Trump already signaled to levy 10 to 20 percent taxes on all imports from all countries with a special rate of 60 percent on all imports from China. He also specified Mexico and Canada among the countries to be slapped with taxes.

In retaliation, Canada said it was already preparing to strike back should Trump proceed with his plan to slap a 25-percent tax on Canadian goods.

At present, Canadian officials are working on a list of American products that the US exports to Canada, targeting items that both send a political message and inflict a reasonable amount of economic damage, according to sources.

Overall, ZIM ranks 7th on our list of companies mirroring Wall Street downturn. While we acknowledge the potential of ZIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZIM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.