Top shipping stocks this month include Eneti Inc., Seacor Marine Holdings Inc., and Nordic American Tankers Ltd., all of whose share prices have risen by more than 70% this past year.
Shipping stocks overall, represented by the Dow Jones U.S. Marine Transportation Index, have risen 25% in the past 12 months compared with a 16% gain for the Russell 1000, a benchmark for U.S. large-capitalization stocks.
Here are the top three shipping stocks in the categories of best value, fastest growth, and most momentum. All data is as of July 19.
Best Value Shipping Stocks
These are the shipping stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
| Best Value Shipping Stocks | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing P/E Ratio | |
| ZIM Integrated Shipping Services Ltd. (ZIM) | 14.24 | 1.7 | 0.6 |
| A.P. Møller Mærsk A/S (AMKBY) | 10.48 | 35.8 | 1.5 |
| Costamare Inc. (CMRE) | 9.88 | 1.2 | 2.2 |
Source: YCharts
- ZIM Integrated Shipping Services Ltd.: An Israeli container transportation and logistics company providing cargo for about 100 countries. The company released its first-quarter earnings in May, which included a drop in revenue of 63% compared with the year before and a swing to a net loss due to a substantial decline in freight rates and a sharp demand drop in trans-Pacific trade.
- A.P. Møller Mærsk A/S: A Danish shipping, transport, and logistics company. It provides container and special vessels, terminals, supply chips, and container box manufacturing services to clients around the world.
- Costamare Inc.: This is a Monaco-based company that ships cargo worldwide with a fleet of more than 100 vessels. On May 15, the company released its first-quarter earnings, with net income growth of 21% and a drop in revenue of 7% versus the previous year. Charter rates for container ships are continuing to experience demand growth. Costamare announced a quarterly dividend of 11.5 cents a share payable Aug. 7. The company has kept the same dividend yield since July 2021, excluding a special payout in April 2022.
Fastest-Growing Shipping Stocks
These are the top shipping stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-on-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth.
Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 1,000% were excluded as outliers.
| Fastest Growing Shipping Stocks | ||||
|---|---|---|---|---|
| Price ($) | Market Cap ($B) | EPS Growth (%) | Revenue Growth (%) | |
| Nordic American Tankers Ltd. (NAT) | 3.77 | 0.8 | N/A (see company description) | 461 |
| Ardmore Shipping Corp. (ASC) | 12.06 | 0.5 | N/A (see company description) | 87 |
| Kirby Corp. (KEX) | 76.34 | 4.6 | 134 | 23 |
Source: YCharts
- Nordic American Tankers Ltd.: A tanker company located in Bermuda. It owns and operates a fleet of 24 crude oil tankers. On May 22, the company reported earnings, and total revenue surged by more than fivefold on net income of $47 million, swinging from a net loss in the year-earlier quarter. Nordic American also paid out a dividend of 15 cents, the 102nd consecutive quarter with dividend distribution. Note Nordic American doesn’t have an EPS growth figure in the table above because the company reported a loss per share in the first quarter of 2022.
- Ardmore Shipping Corp.: This company transports petroleum and chemical products worldwide. The company owns and operates more than 20 vessels. Note Ardmore Shipping doesn’t have an EPS growth figure in the table above because the company reported a net loss per share in the first quarter of 2022.
- Kirby Corp.: A marine transportation company that ships liquid products and industrial equipment through intracoastal waterways. In April, the company released first-quarter earnings with net income that more than doubled and revenue that increased by 23% compared with the previous year. Kirby reported an increase in both inland and coastal marine transportation profits, with earnings predicted to grow as the year continues.
Shipping Stocks With the Most Momentum
These are the shipping stocks that had the highest total return over the last 12 months.
| Shipping Stocks With the Most Momentum | |||
|---|---|---|---|
| Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) | |
| Eneti Inc. (NETI) | 12.89 | 0.5 | 117 |
| Seacor Marine Holdings Inc. (SMHI) | 11.77 | 0.3 | 91 |
| Nordic American Tankers Ltd. (NAT) | 3.77 | 0.8 | 72 |
| Russell 1000 Index | N/A | N/A | 16 |
| Dow Jones U.S. Marine Transportation Index | N/A | N/A | 25 |
Source: YCharts
- Eneti: It has five wind turbine installation vessels to construct offshore wind turbine generators. The company changed its name and business model in 2021 from Scorpio Bulkers Inc., a dry bulk marine shipping company. Eneti reported its first-quarter earnings on April 27, reporting a net loss of $18 million on revenue that declined by 38% compared with the same quarter in 2022. Eneti’s subsidiary Seajacks UK signed two new contracts in the first quarter for the offshore wind sector in northwest Europe that are expected to generate between $5.7 million and $7.1 million in profit for 2023.
- Seacor Marine Holdings: Operates a transportation services business that supports offshore oil and natural gas rigs as well as wind-farm facilities.
- Nordic American Tankers: See company description above.
Trends in the Shipping Industry
The shipping industry was hurt by the supply-chain crisis during the worst periods of the pandemic and its aftermath. Numerous factors contributed to the crisis, including the war between Russia and Ukraine and COVID-19 lockdowns in China.
Global shipping companies reported historically high profits once demand soared after the pandemic supply crisis. Recently, Maersk has warned of growing trade concerns resulting from reduced consumer demand, rising inventory levels, and increased tension between the U.S. and China regarding trade.
Advantages of Shipping Stocks
The shipping industry is crucial for the transport of food, fuel, raw materials, and manufactured goods around the world, and moves roughly 11 billion tons of goods per year. Because of the vital role that shipping companies play, they are likely to remain critically important.
Additionally, the shipping industry has the lowest environmental impact within the transport segment when measured on a per-ton basis, according to the International Chamber of Shipping, making it a likely area of interest as investors weigh climate impact.
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As of the date this article was written, the author does not own any of the above stocks.
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