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Costamare (CMRE) Stock Reaches 52-Week High: What's Aiding It?

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Shares of Costamare (CMRE - Free Report) hit a 52-week high of $15.13 during the course of the trading session on Sep 2, before retracing a bit to close the session at $14.98. In fact, this Monaco-based player, currently sporting a Zacks Rank #1 (Strong Buy), has performed very well year to date. The stock has rallied 80.9%, outperforming its industry’s growth of 62.6%.

Zacks Investment Research
Image Source: Zacks Investment Research

You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s delve deeper to unearth the reasons for this impressive price upsurge.

With the gradual resumption of economic activities, the world trade gathered pace, which is a positive for shipping stocks like Costamare. This is because the shipping industry is responsible for transporting a high proportion of goods involved in world trade.

Bullishness surrounding the containership market is a tailwind for Costamare. The containership market is being aided by increased manufacturing activities in Asia besides other factors. In June 2021, the company announced the acquisition of 16 dry bulk vessels, thereby diversifying its operations and entering the dry bulk shipping market. This strategic move is time opportune as the dry bulk market is flourishing. The upward movement of the Baltic Dry Index reflects the positivity surrounding the dry bulk market.

We are also impressed by the company’s strong cash flow generating ability. Its capacity to reward its shareholders through dividend payments even in these turbulent times is appreciative too. The company’s young fleet size is praiseworthy as well.

Estimate Revisions

Upward estimate revisions raise optimism for the stock’s prospects. Costamare scores impressively on this front. The Zacks Consensus Estimate for current-year earnings has moved 7.6% north over the past 60 days to $2.26 per share. The same has increased 39.4% to $3.29 per share for 2022 in the same time span.

Additionally, the company’s trailing 12-month return on equity (ROE) supports its growth potential. The company’s ROE of 13.4% also compares favorably with its industry’s ROE of 9%.

Other Stocks to Consider

Investors interested in the broader Zacks Transportation  sector may also consider some other top-ranked stocks like Ryder System (R - Free Report) ), Eagle Bulk Shipping (EGLE - Free Report) and Herc Holdings Inc. (HRI - Free Report) , each currently flaunting the same Zacks Rank as Costamare.

Shares of Ryder, Eagle Bulk and Herc have gained 30.1%, 164.3% and 97.3%, respectively, year to date.