Shipping stocks have been on fire.
Through our proprietary search data, we find the most interesting opportunities and show you what financial pros and retail investors are analyzing across more than 25 million searches per month. Today, we tell you which shipping stock to look for.
With freight rates skyrocketing on heavy demand and congested ports, marine shipping companies are having some of their most profitable years ever.
Stocks like Star Bulk Carriers (SBLK) are up more than 600% since they bottomed out in March of 2020.
Current forecasts suggest that ocean shipping rates will continue to remain elevated for months to come.
Yet, many of these companies still trade at a discount relative to the markets, which makes them quite attractive.
We pulled the top 6 dry bulk and container shipping stocks from our database that were searched by financial pros.
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6. Golden Ocean Group (GOGL)
Number of Financial Pros Searching: 35
Golden Ocean Group Limited, a shipping company, owns and operates a fleet of dry bulk vessels comprising Newcastlemax, Capesize, Panamax, and Ultramax vessels worldwide. The company owns and operates dry bulk vessels in the spot and time charter markets.
Golden Ocean Group transports bulk commodities, such as ores, coal, grains, and fertilizers. As of March 18, 2021, it owned a fleet of 67 dry bulk vessels. Golden Ocean Group Limited is based in Hamilton, Bermuda.
Shares of Golden Ocean Group are up 23.71% year-to-date.
GOGL is also among the best performing stock picks of hedge fund manager Michael Burry. Here is what Insider Monkey said about this stock in a recent article:
“Burry bought around 530,000 shares of Golden Ocean Group Limited (NASDAQ:GOGL) in the first quarter of 2021 for an average price of $6.02 per share, just as normal business was resuming after the pandemic. He then handsomely added to that stake in the second quarter of 2021 before selling it off completely during the third quarter.
Golden Ocean Group Limited (NASDAQ:GOGL) was one of the top economic recovery plays for investors in 2021. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Golden Ocean Group Limited (NASDAQ:GOGL) with 1.4 million shares worth more than $15 million.”
5. Safe Bulkers (SB)
Number of Financial Pros Searching: 56
Safe Bulkers, Inc. provides marine dry bulk transportation services. The company owns and operates dry bulk vessels for transporting bulk cargoes primarily coal, grain, and iron ore.
As of March 15, 2021, Safe Bulkers had a fleet of 43 dry bulk vessels having an average age of 10.3 years; and an aggregate carrying capacity of 3,937,000 deadweight tons.
Its fleet consisted of 15 Panamax class vessels, 10 Kamsarmax class vessels, 14 post- Panamax class vessels, and four Capesize class vessels. The company was incorporated in 2007 and is based in Monaco
Shares of Safe Bulkers are up 23.87% year-to-date.
Hedge funds sensed potential large gains in early 2021 and flocked into Safe Bulkers. The chart below shows that the number of hedge funds with bullish SB positions more than doubled in 2021. You can check out the recent hedge fund activity in SB here.
4. Genco Shipping & Trading (GNK)
Number of Financial Pros Searching: 57
Genco Shipping & Trading Limited, together with its subsidiaries, engages in the ocean transportation of dry bulk cargoes worldwide.
The company owns and operates dry bulk carrier vessels to transport iron ore, coal, grains, steel products, and other dry-bulk cargoes, chartering its vessels primarily to trading houses, including commodities traders; producers; and government-owned entities.
As of December 31, 2021, the company fleet consisted of 44 dry bulk carriers, including 17 Capesize, 15 Ultramax, and 12 Supramax with an aggregate capacity of approximately 4,636,000 deadweight tons. Genco Shipping & Trading Limited was incorporated in 2004 and is headquartered in New York, New York.
Shares of Genco Shipping & Trading are up 21.44% year-to-date.
Genco Shipping & Trading ranked #2 in Insider Monkey’s list of the 5 best shipping and container stocks to buy. Here is an excerpt from that article:
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.
3. Global Ship Lease (GSL)
Number of Financial Pros Searching: 106
Global Ship Lease, Inc. owns and charters containerships of various sizes under fixed-rate charters to container shipping companies.
As of March 10, 2021, it owned 43 mid-sized and smaller containerships with an aggregate capacity of 245,280 twenty-foot equivalent units.
The company is based in London, the United Kingdom.
Shares of Global Ship Lease are up 25.12% year-to-date.
At one point n 2021, the cost of moving freight from Shanghai to L.A. skyrocketed from $4,000 to nearly $30,000.
While prices have eased some, they remain at historically elevated levels.
Yet, we believe Global Ship Lease (GSL) is in a better position to weather the coming storm.
With inflation through the roof and energy prices at extreme levels, major manufacturers like China will have no choice but to cut production.
The same goes with other global players as central banks raise interest rates.
That will hit dry bulk carriers first and foremost – those companies that ship iron ore, grains, coal, etc.
However, we don’t expect demand for container ships to sour anytime soon.
In fact, Global Ship Lease has slowly climbed the ranks in our top marine shipping stock search results for financial pros over the last few months.
That lends itself to the same thesis we see in the market.
2. Nordic American Tanker (NAT)
Number of Financial Pros Searching: 108
Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally.
The company operates a fleet of 25 Suezmax crude oil tankers.
Nordic American Tankers company was formerly known as Nordic American Tanker Shipping Limited and changed its name to Nordic American Tankers Limited in June 2011. Nordic American Tankers Limited was incorporated in 1995 and is based in Hamilton, Bermuda.
Shares of Nordic American Tanker are up 11.83% year-to-date.
Earlier this year NAT made Insider Monkey’s list of the penny stocks that pay dividends. Here is what Insider Monkey said about NAT:
Nordic American Tankers Ltd (NYSE:NAT) is a tanker company on our list of penny stocks that pay dividends. It acquires and charters double-hull tankers in Bermuda and internationally, and operates a fleet of 25 Suezmax crude oil tankers.
Jefferies analyst Randy Giveans has a Hold rating on Nordic American Tankers Ltd (NYSE:NAT) shares as of this November.
Six out of 867 hedge funds in our database held stakes in Nordic American Tankers Ltd (NYSE:NAT) in the third quarter, worth $7 million approximately. Millennium Management was the largest stakeholder in the stock, holding 1,830,436 shares worth $4.7 million.
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Disclosure: None. Top 6 Shipping Stocks Searched by Financial Pros is originally published at Insider Monkey.
