There is no question that shipping stocks have been absolute rockstars the last several quarters. Everything went their way. The global pandemic caused such a seismic shift to the economy that it created once-in-a-lifetime opportunities for this industry. The shift moved consumer dollars away from experiences like restaurants and vacations, and pushed it towards goods rather than services. This created immense demand for shippers, truckers, and the like.
It should then come as no surprise that today’s Bull of the Day is a shipping stock. I’m talking about Zacks Rank #1 (Strong Buy) Danaos (DAC - Free Report) . Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2021, it had a fleet of 65 containerships aggregating 403,793 twenty-foot equivalent units in capacity.
Danaos is a Zacks Rank #1 (Strong Buy) in the Transportation – Shipping industry which ranks in the Top 38% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is the series of earnings estimate revisions coming from analysts. The numbers are nothing short of staggering. Over the last ninety days, our Zacks Consensus Estimate for the current year is up from $13.10 to $17.53, while next year’s number is up form $20.15 to an eye-watering $30.03. That represents 71% earnings growth next year, on the heels of this year’s 144% growth.
Mind you, we are talking about a $77 stock. It’s slated to make $30 per share next year. That’s a PE ration less than 2.5x future earnings. With growth like this, that is simply unheard of. Looking at the revenue growth, the story is the same. Current year revenue growth is forecast to come in at 42% while next year is set for 38.4%. Those are all monster growth numbers which the company has consistently beat. ac
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
There is no question that shipping stocks have been absolute rockstars the last several quarters. Everything went their way. The global pandemic caused such a seismic shift to the economy that it created once-in-a-lifetime opportunities for this industry. The shift moved consumer dollars away from experiences like restaurants and vacations, and pushed it towards goods rather than services. This created immense demand for shippers, truckers, and the like.
It should then come as no surprise that today’s Bull of the Day is a shipping stock. I’m talking about Zacks Rank #1 (Strong Buy) Danaos (DAC - Free Report) . Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2021, it had a fleet of 65 containerships aggregating 403,793 twenty-foot equivalent units in capacity.
Danaos is a Zacks Rank #1 (Strong Buy) in the Transportation – Shipping industry which ranks in the Top 38% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is the series of earnings estimate revisions coming from analysts. The numbers are nothing short of staggering. Over the last ninety days, our Zacks Consensus Estimate for the current year is up from $13.10 to $17.53, while next year’s number is up form $20.15 to an eye-watering $30.03. That represents 71% earnings growth next year, on the heels of this year’s 144% growth.
Mind you, we are talking about a $77 stock. It’s slated to make $30 per share next year. That’s a PE ration less than 2.5x future earnings. With growth like this, that is simply unheard of. Looking at the revenue growth, the story is the same. Current year revenue growth is forecast to come in at 42% while next year is set for 38.4%. Those are all monster growth numbers which the company has consistently beat. ac
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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