We recently published a list of the 10 Best Marine Shipping Stocks to Buy According to Analysts. In this article, we are going to take a look at where Okeanis Eco Tankers Corp. (NYSE:ECO) stands against the other best marine shipping stocks to buy according to analysts.
Marine shipping is a critical component of the global economy, responsible for transporting approximately 80% of the world’s trade by volume. This industry serves as the backbone of international commerce by facilitating the movement of raw materials, manufactured goods, and energy resources across continents. The maritime shipping industry continues to face significant challenges as geopolitical tensions and security threats escalate in key shipping routes. Shipping companies have been forced to reconsider their routes, with many opting to divert vessels around the Cape of Good Hope, significantly increasing fuel costs and delivery times. These disruptions have far-reaching economic consequences, affecting supply chains and global trade.
Years of Challenges
In an interview with CNBC on November 27, Adrian Beciri, CEO of Ducat Maritime said that marine shipping has faced a series of setbacks over the years, including the disruptions caused by the COVID-19 pandemic, hyperinflation, manpower shortages, and the aftermath of conflicts such as the war in Ukraine and tensions in the Middle East, including the blockage of the Suez Canal. These events have compounded the issues within the marine shipping sector and continue to affect the industry.
Beciri highlighted the intrinsic difficulties of the shipping sector, particularly the demanding nature of the work, coupled with economic challenges that have contributed to a labor shortage in the shipping industry, a problem that is often overlooked by the broader market. The CEO also expressed concerns about the potential impact of the president-elect’s announcement of new tariffs on several countries, which could further complicate supply chains and necessitate a shift towards regional or zonal trading blocks. Such a shift could disrupt the historical patterns of international trade, which are based on the comparative advantages of large nations and the principles of free trade. Looking ahead, Beciri emphasized the importance of stable and consistent markets and policies to foster long-term investments and adjustments within the industry. He called for a conducive environment that would allow firms to make significant investments.
Despite the mounting challenges faced by the maritime shipping industry, it remains an indispensable pillar of global trade.
An aerial view of a bustling port, revealing a fleet of shuttle tankers transporting crude oil.
Our Methodology
To compile our list of the 10 best marine shipping stocks to buy according to analysts, we used Finviz and Yahoo stock screeners to find marine shipping companies with a market cap of over $500 million as of December 24. From that list, we narrowed our choices to 10 stocks that analysts see the most upside to. We also included the number of hedge fund holders for these companies, which was sourced from Insider Monkey’s Hedge Fund database as of Q3 2024. The list is sorted in ascending order of analysts’ average upside potential, as of December 24.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Okeanis Eco Tankers Corp. (NYSE:ECO)
Upside Potential: 115.48%
Number of Hedge Fund Investors: 10
Stock Price as of December 24: $20.42
Okeanis Eco Tankers Corp. (NYSE:ECO) is a leading marine transportation company specializing in the ownership and operation of modern, eco-friendly crude oil tankers. The company boasts a fleet of 14 vessels, built at top-tier shipyards in Korea and Japan, with an average age of just five years. The company’s fleet is uniquely positioned as the youngest and most eco-friendly, with all vessels equipped with scrubbers, to meet environmental regulations.
Okeanis Eco Tankers Corp. (NYSE:ECO) is focusing on operating a young fleet of modern, energy-efficient tankers, which allows the company to potentially secure better charter rates due to their environmental benefits. The company is committed to maintaining a competitive edge by continuously optimizing its fleet and ensuring that its vessels are in top condition. The company has successfully completed a series of drydocks for several of its vessels, including the five-year drydock for Nissos Kythnos, Nissos Rhenia, and Nissos Donoussa.
These drydocks were executed within budget, with costs approximately 10% below internal estimates, and included advanced enhancements such as high-spec tanks and graphene propeller coatings to improve vessel performance and efficiency. The company projects a 10% consumption benefit over a five-year period, with an annual savings of $1 million.
Looking ahead, Okeanis Eco Tankers Corp. (NYSE:ECO) is optimistic about the medium-term fundamentals of the crude oil tanker market, driven by a controlled order book, an aging fleet, and shrinking yard capacity. The company anticipates that the supply of new vessels will struggle to keep pace with the retirement of older, less efficient ships, creating a favorable supply environment. Additionally, the ton-mile effect, where crude oil supply is predominantly sourced from the West and demand is concentrated in the East, supports higher demand for tanker services.
Overall, ECO ranks 1st on our list of best marine shipping stocks to buy according to analysts. While we acknowledge the potential of ECO to grow, 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 ECO 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.
