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ZIM Integrated Shipping Services (ZIM) Dips More Than Broader Markets: What You Should Know

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ZIM Integrated Shipping Services (ZIM - Free Report) closed the most recent trading day at $39.14, moving -0.91% from the previous trading session. This change lagged the S&P 500's daily loss of 0.54%.

Coming into today, shares of the container shipping company had lost 6.88% in the past month. In that same time, the Transportation sector lost 2.73%, while the S&P 500 gained 3.05%.

Investors will be hoping for strength from ZIM as it approaches its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $18.23 per share and revenue of $7.11 billion. These totals would mark changes of +267.54% and +78.07%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for ZIM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ZIM is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, ZIM is currently trading at a Forward P/E ratio of 2.17. For comparison, its industry has an average Forward P/E of 5.35, which means ZIM is trading at a discount to the group.

The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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