We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Transportation - Shipping industry is benefiting from strategic diversification initiatives and an increasing shift toward digitalization aimed at improving operational efficiency. The industry is also witnessing positive momentum from a stronger focus on environmental compliance and the growing adoption of alternative fuels.
Despite elevated fuel costs driven by ongoing tensions in the Middle East and broader macroeconomic challenges, industry participants such asInternational Seaways, Scorpio Tankers and Seanergy Maritime Holdings remain well-positioned to benefit from ongoing business streamlining and efficiency-enhancement efforts.
Industry Overview
The companies belonging to the Zacks Transportation - Shipping industry, which is cyclical in nature, offer liquefied natural gas and crude oil marine transportation services under long-term, fixed-rate contracts with energy and utility bigwigs. Most participants focus on the seaborne transportation of crude oil and other oil products globally. The industry also includes players that own, operate and manage liquefied natural gas carriers.
Some participants are owners and operators of containerships for charter. The change in the e-commerce landscape due to the coronavirus impact implies that shippers are relying more on third-party logistics providers. The well-being of the industry participants is directly proportional to the health of the economy. The resumption of economic activities after coming to a standstill during COVID-19 bodes well for the industry.
4 Shipping Industry Trends in Focus
Digitalization and AI Adoption Driving Transformation: Digitalization and the adoption of artificial intelligence are positively reshaping the global shipping industry by improving efficiency, transparency and decision-making throughout the supply chain. Advanced analytics and machine learning technologies enable more accurate demand forecasting, optimized routing and better fuel consumption management, resulting in lower operational costs and reduced emissions.
At the same time, real-time tracking systems and IoT-enabled sensors enhance cargo visibility, reduce delays and strengthen risk management by identifying potential disruptions at an early stage. Automation across ports and vessels is streamlining loading, unloading and documentation procedures, which helps accelerate turnaround times while minimizing human error. In addition, AI-powered predictive maintenance allows shipping companies to prevent equipment failures, extend asset life, and maintain safer and more reliable operations.
Stronger Emphasis on Green Transition Supporting Growth: The growing focus on the green transition is generating substantial long-term advantages for the shipping industry by encouraging technological innovation, improving operational efficiency and strengthening market competitiveness. The increasing use of alternative fuels such as LNG, methanol, ammonia and biofuels is helping reduce emissions while enabling compliance with stricter environmental regulations and carbon pricing frameworks.
At the same time, advancements in vessel design, high-performance coatings and modern propulsion systems are contributing to lower operating costs. The adoption of sustainable practices is also improving access to green financing opportunities and attracting customers looking for low-carbon logistics solutions. Furthermore, enhanced collaboration among shipbuilders, ports and technology providers is supporting the development of critical infrastructure, increasing industry resilience and preparing the sector for future regulatory and market developments.
Emphasis on Shareholder Returns: Dividend-paying stocks are known for providing steady income and typically experience less volatility than non-dividend payers. As a result, they are often viewed as dependable vehicles for long-term wealth creation, with dividends helping to offset the effects of economic turbulence — conditions that remain prevalent today. Among shipping stocks, Seanergy Maritime, earlier this year, announced a 53.8% increase in its quarterly dividend to 20 cents per share.
Macroeconomic Turmoil Is Worrisome: Global macroeconomic weakness and volatile supply-chain dynamics are persistent concerns. Tariff troubles, especially between the United States and China, remain an overhang on global supply chains. High inflation and elevated fuel costs due to the unrest in the Middle East represent grave concerns for industry players.
Zacks Industry Rank Indicates Upbeat Prospects
The Zacks Transportation - Shipping industry lies within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #46, which places it in the top 19% of 245 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth. As a matter of fact, the industry’s earnings estimate for 2026 has gone up 57% since March 2026.
Before we present a few stocks that you may want to add to your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Outperforms the Sector and the S&P 500
The Zacks Transportation - Shipping industry has surpassed the Zacks S&P 500 composite index as well as the broader sector over the past year.
Over this period, the industry has surged in excess of 66% compared with the S&P 500 Index’s northward movement of 30.8%. The broader sector has moved 17.1% north in the same timeframe.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E- F12M), a commonly used multiple for valuing shipping stocks, the industry is currently trading at 12.11X, compared with the S&P 500’s 22.16X. It is also below the sector’s P/E (F12) reading of 15.17X.
Over the past five years, the industry has traded as high as 16.74X, as low as 3.88X and at the median of 5.94X.
3 Transportation-Shipping Stocks to Buy Now
International Seaways is benefiting from the increasing demand for tanker tonnage amid instability in the Strait of Hormuz, which is lengthening shipping routes. The tanker sector is experiencing strong rates, a further tailwind for INSW.
Efforts to modernize its fleet also bode well for International Seaways. INSW currently flaunts a Zacks Rank #1 (Strong Buy). The shipping company’s earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 33.9%.
Scorpio Tankers is being well served by its strong balance sheet and fleet modernization efforts. High product tanker rates, with longer voyages boosting the demand for tonnage, are aiding the company. STNG currently sports a Zacks Rank #1.
The stock has gained 38% over the past six months. The Zacks Consensus Estimate for 2026 earnings has been revised upward in excess of 142% over the past 60 days.
Seanergy Maritime, a dry bulk shipping company, is benefiting from the positive sentiment surrounding the Capesize market. Its shareholder-friendly approach bodes well for the company.
SHIP currently flaunts a Zacks Rank #1. The shipping company’s earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 76.4%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Zacks Industry Outlook Highlights International Seaways, Scorpio and Seanergy
For Immediate Release
Chicago, IL – May 13, 2026 – Today, Zacks Equity Research discussesInternational Seaways (INSW - Free Report) , Scorpio Tankers (STNG - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .
Industry: Transportation - Shipping
Link: https://www.zacks.com/commentary/2919518/shipping-industry-is-poised-for-growth-3-stocks-to-bet-on-at-present
The Zacks Transportation - Shipping industry is benefiting from strategic diversification initiatives and an increasing shift toward digitalization aimed at improving operational efficiency. The industry is also witnessing positive momentum from a stronger focus on environmental compliance and the growing adoption of alternative fuels.
Despite elevated fuel costs driven by ongoing tensions in the Middle East and broader macroeconomic challenges, industry participants such asInternational Seaways, Scorpio Tankers and Seanergy Maritime Holdings remain well-positioned to benefit from ongoing business streamlining and efficiency-enhancement efforts.
Industry Overview
The companies belonging to the Zacks Transportation - Shipping industry, which is cyclical in nature, offer liquefied natural gas and crude oil marine transportation services under long-term, fixed-rate contracts with energy and utility bigwigs. Most participants focus on the seaborne transportation of crude oil and other oil products globally. The industry also includes players that own, operate and manage liquefied natural gas carriers.
Some participants are owners and operators of containerships for charter. The change in the e-commerce landscape due to the coronavirus impact implies that shippers are relying more on third-party logistics providers. The well-being of the industry participants is directly proportional to the health of the economy. The resumption of economic activities after coming to a standstill during COVID-19 bodes well for the industry.
4 Shipping Industry Trends in Focus
Digitalization and AI Adoption Driving Transformation: Digitalization and the adoption of artificial intelligence are positively reshaping the global shipping industry by improving efficiency, transparency and decision-making throughout the supply chain. Advanced analytics and machine learning technologies enable more accurate demand forecasting, optimized routing and better fuel consumption management, resulting in lower operational costs and reduced emissions.
At the same time, real-time tracking systems and IoT-enabled sensors enhance cargo visibility, reduce delays and strengthen risk management by identifying potential disruptions at an early stage. Automation across ports and vessels is streamlining loading, unloading and documentation procedures, which helps accelerate turnaround times while minimizing human error. In addition, AI-powered predictive maintenance allows shipping companies to prevent equipment failures, extend asset life, and maintain safer and more reliable operations.
Stronger Emphasis on Green Transition Supporting Growth: The growing focus on the green transition is generating substantial long-term advantages for the shipping industry by encouraging technological innovation, improving operational efficiency and strengthening market competitiveness. The increasing use of alternative fuels such as LNG, methanol, ammonia and biofuels is helping reduce emissions while enabling compliance with stricter environmental regulations and carbon pricing frameworks.
At the same time, advancements in vessel design, high-performance coatings and modern propulsion systems are contributing to lower operating costs. The adoption of sustainable practices is also improving access to green financing opportunities and attracting customers looking for low-carbon logistics solutions. Furthermore, enhanced collaboration among shipbuilders, ports and technology providers is supporting the development of critical infrastructure, increasing industry resilience and preparing the sector for future regulatory and market developments.
Emphasis on Shareholder Returns: Dividend-paying stocks are known for providing steady income and typically experience less volatility than non-dividend payers. As a result, they are often viewed as dependable vehicles for long-term wealth creation, with dividends helping to offset the effects of economic turbulence — conditions that remain prevalent today. Among shipping stocks, Seanergy Maritime, earlier this year, announced a 53.8% increase in its quarterly dividend to 20 cents per share.
Macroeconomic Turmoil Is Worrisome: Global macroeconomic weakness and volatile supply-chain dynamics are persistent concerns. Tariff troubles, especially between the United States and China, remain an overhang on global supply chains. High inflation and elevated fuel costs due to the unrest in the Middle East represent grave concerns for industry players.
Zacks Industry Rank Indicates Upbeat Prospects
The Zacks Transportation - Shipping industry lies within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #46, which places it in the top 19% of 245 Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth. As a matter of fact, the industry’s earnings estimate for 2026 has gone up 57% since March 2026.
Before we present a few stocks that you may want to add to your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Outperforms the Sector and the S&P 500
The Zacks Transportation - Shipping industry has surpassed the Zacks S&P 500 composite index as well as the broader sector over the past year.
Over this period, the industry has surged in excess of 66% compared with the S&P 500 Index’s northward movement of 30.8%. The broader sector has moved 17.1% north in the same timeframe.
Industry's Current Valuation
Based on the forward 12-month price-to-earnings (P/E- F12M), a commonly used multiple for valuing shipping stocks, the industry is currently trading at 12.11X, compared with the S&P 500’s 22.16X. It is also below the sector’s P/E (F12) reading of 15.17X.
Over the past five years, the industry has traded as high as 16.74X, as low as 3.88X and at the median of 5.94X.
3 Transportation-Shipping Stocks to Buy Now
International Seaways is benefiting from the increasing demand for tanker tonnage amid instability in the Strait of Hormuz, which is lengthening shipping routes. The tanker sector is experiencing strong rates, a further tailwind for INSW.
Efforts to modernize its fleet also bode well for International Seaways. INSW currently flaunts a Zacks Rank #1 (Strong Buy). The shipping company’s earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 33.9%.
You can see the complete list of today’s Zacks #1 Rank stocks here
Scorpio Tankers is being well served by its strong balance sheet and fleet modernization efforts. High product tanker rates, with longer voyages boosting the demand for tonnage, are aiding the company. STNG currently sports a Zacks Rank #1.
The stock has gained 38% over the past six months. The Zacks Consensus Estimate for 2026 earnings has been revised upward in excess of 142% over the past 60 days.
Seanergy Maritime, a dry bulk shipping company, is benefiting from the positive sentiment surrounding the Capesize market. Its shareholder-friendly approach bodes well for the company.
SHIP currently flaunts a Zacks Rank #1. The shipping company’s earnings have outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 76.4%.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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.