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Zacks Investment Ideas feature highlights: Global Ship Lease, Inc. and ZIM Integrated Shipping Services Ltd
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For Immediate Release
Chicago, IL – March 14, 2022 – Today, Zacks Investment Ideas features: Global Ship Lease, Inc. (GSL - Free Report) and ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) .
The New Normal: A Winning Strategy in 2022
After a bull market for the history books that saw stocks deliver double-digit gains in each of the last three years, investors are faced with a sad truth: there is a high probability that stocks won’t post similar outsized gains this year. Last year witnessed above-average growth as the economy reopened and surged relative to the prior depressed data.
This year, both slowing economic growth and lower corporate earnings growth will likely translate into lower stock returns. These types of market periods are highlighted by increased volatility and uncertainty. But that isn’t necessarily a bad thing – because with volatility comes opportunity. We just need to know where to look.
There is substantial volatility and little trend. Higher volatility has become the new normal. The upside in this situation is that certain pockets of market become more appealing and attract investment. The opportunity for the active investor becomes greater as these pockets may have been previously depressed or undesirable.
Whether we have more downside for this move lower in the market or not, it’s imperative to remain patient during corrections. Having a plan in place going in puts us in a much better mindset when those rough market stretches persist.
The point is to limit the downside without completely giving up the gains that can come from equities when the market eventually recovers. There’s nothing less safe than playing it too safe. A better course of action is to revisit our portfolio in a calmer moment to build in ways to accept greater volatility without panicking.
One way to identify individual leading stocks in this (and any) market environment is to determine the leading industry groups, a process that naturally thins the field and pinpoints companies that are outperforming. While this year has been painful for the passive fund investor, certain pockets of the market have been working.
The Zacks Transportation – Shipping industry is ranked in the top 33% out of approximately 250 industry groups. The stocks within this industry group are experiencing positive earnings estimate revisions, which is the most powerful force impacting stock prices.
Investing in stocks within leading industry groups can provide a constant ‘tailwind’ to our investing success. Let’s take a look at two Zacks #1 (Strong Buy) stocks within this top industry group.
Global Ship Lease, Inc.
Global Ship Lease owns and operates containerships under long-term, fixed-rate charters to world class container shipping companies. GSL owns over 40 containerships of varying sizes. Global Ship Lease commenced operations in 2007 and is based in London.
GSL has exceeded earnings estimates in nine out of the past ten quarters. Last week, the containership operator reported Q4 EPS of $1.84, a +46.03% beat over the $1.26 consensus. The stock has been on a tear, nearly doubling from a year ago and up 27.3% in 2022.
Over the last four quarters, GSL has posted a +44.62% average earnings surprise. Despite the impressive performance, GSL is still relatively undervalued (3.7 forward P/E) versus its industry group (4.3).
Analysts are in agreement in terms of recent earnings estimate revisions and have upped their 2022 EPS estimates by 7.15% in the past 60 days. The full-year Zacks Consensus Estimate now stands at $7.79, reflecting potential growth of 60.29% relative to last year.
ZIM Integrated Shipping Services Ltd.
ZIM Integrated Shipping Services provides container shipping and related services globally. ZIM provides cargo and transport services including seaborne passage and logistic solutions. The company operates a fleet of over 100 vessels. ZIM Integrated Shipping Services was founded in 1945 and is based in Haifa, Israel.
ZIM has beaten earnings estimates in each of the past four quarters, sporting a +22.67% average surprise over that timeframe. The shipping container provider posted Q4 EPS earlier this week of $14.17, a +3.81% surprise over estimates. ZIM stock has surged over 260% in the past year and is up 30.7% this year alone.
ZIM’s run may be just getting started, as even with the remarkable performance the company still trades relatively undervalued at just a 2.44 forward P/E. Analysts covering ZIM have raised their current-quarter EPS estimates by +60.13% in the past 60 days. The Q1 Zacks Consensus Estimate now sits at $12.65, translating to 146.59% growth relative to last year. ZIM will report these results on May 18th.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Global Ship Lease, Inc. and ZIM Integrated Shipping Services Ltd
For Immediate Release
Chicago, IL – March 14, 2022 – Today, Zacks Investment Ideas features: Global Ship Lease, Inc. (GSL - Free Report) and ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) .
The New Normal: A Winning Strategy in 2022
After a bull market for the history books that saw stocks deliver double-digit gains in each of the last three years, investors are faced with a sad truth: there is a high probability that stocks won’t post similar outsized gains this year. Last year witnessed above-average growth as the economy reopened and surged relative to the prior depressed data.
This year, both slowing economic growth and lower corporate earnings growth will likely translate into lower stock returns. These types of market periods are highlighted by increased volatility and uncertainty. But that isn’t necessarily a bad thing – because with volatility comes opportunity. We just need to know where to look.
There is substantial volatility and little trend. Higher volatility has become the new normal. The upside in this situation is that certain pockets of market become more appealing and attract investment. The opportunity for the active investor becomes greater as these pockets may have been previously depressed or undesirable.
Whether we have more downside for this move lower in the market or not, it’s imperative to remain patient during corrections. Having a plan in place going in puts us in a much better mindset when those rough market stretches persist.
The point is to limit the downside without completely giving up the gains that can come from equities when the market eventually recovers. There’s nothing less safe than playing it too safe. A better course of action is to revisit our portfolio in a calmer moment to build in ways to accept greater volatility without panicking.
One way to identify individual leading stocks in this (and any) market environment is to determine the leading industry groups, a process that naturally thins the field and pinpoints companies that are outperforming. While this year has been painful for the passive fund investor, certain pockets of the market have been working.
The Zacks Transportation – Shipping industry is ranked in the top 33% out of approximately 250 industry groups. The stocks within this industry group are experiencing positive earnings estimate revisions, which is the most powerful force impacting stock prices.
Investing in stocks within leading industry groups can provide a constant ‘tailwind’ to our investing success. Let’s take a look at two Zacks #1 (Strong Buy) stocks within this top industry group.
Global Ship Lease, Inc.
Global Ship Lease owns and operates containerships under long-term, fixed-rate charters to world class container shipping companies. GSL owns over 40 containerships of varying sizes. Global Ship Lease commenced operations in 2007 and is based in London.
GSL has exceeded earnings estimates in nine out of the past ten quarters. Last week, the containership operator reported Q4 EPS of $1.84, a +46.03% beat over the $1.26 consensus. The stock has been on a tear, nearly doubling from a year ago and up 27.3% in 2022.
Over the last four quarters, GSL has posted a +44.62% average earnings surprise. Despite the impressive performance, GSL is still relatively undervalued (3.7 forward P/E) versus its industry group (4.3).
Analysts are in agreement in terms of recent earnings estimate revisions and have upped their 2022 EPS estimates by 7.15% in the past 60 days. The full-year Zacks Consensus Estimate now stands at $7.79, reflecting potential growth of 60.29% relative to last year.
ZIM Integrated Shipping Services Ltd.
ZIM Integrated Shipping Services provides container shipping and related services globally. ZIM provides cargo and transport services including seaborne passage and logistic solutions. The company operates a fleet of over 100 vessels. ZIM Integrated Shipping Services was founded in 1945 and is based in Haifa, Israel.
ZIM has beaten earnings estimates in each of the past four quarters, sporting a +22.67% average surprise over that timeframe. The shipping container provider posted Q4 EPS earlier this week of $14.17, a +3.81% surprise over estimates. ZIM stock has surged over 260% in the past year and is up 30.7% this year alone.
ZIM’s run may be just getting started, as even with the remarkable performance the company still trades relatively undervalued at just a 2.44 forward P/E. Analysts covering ZIM have raised their current-quarter EPS estimates by +60.13% in the past 60 days. The Q1 Zacks Consensus Estimate now sits at $12.65, translating to 146.59% growth relative to last year. ZIM will report these results on May 18th.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
See Stocks Now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.