The shipping industry includes companies that transport cargo around the world, all the way from grains to apparel to electronics to appliances. In spite of the term "shipping," these companies often transport commodities and merchandise by air, sea, and on land by truck or train. They also provide storage and other logistics. Some of the largest shipping companies in the world include A.P. Møller-Mærsk A/S (AMKBY) and Hapag-Lloyd AG (HPGLY). The shipping industry has been heavily impacted by the COVID-19 pandemic and has underperformed the broader market. In the past year, the Dow Jones Global Shipping Index has provided total returns of 11.5% compared with 21.5% for the Russell 1000. Total returns data is as of December 9 and all statistics below are as of December 10, 2020.
Here are the top 3 shipping stocks with the best value, the fastest earnings growth, and the most momentum, respectively.
Best Value Shipping Stocks
These are the shipping stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
|Best Value Shipping Stocks|
|Price ($)||Market Cap ($M)||12-Month Trailing P/E Ratio|
|Danaos Corp. (DAC)||14.67||300.0||2.4|
|International Seaways Inc. (INSW)||18.24||510.4||4.1|
|Nordic American Tankers Ltd. (NAT)||3.19||482.3||5.1|
- Danaos Corp.: Greece-based Danaos owns a fleet of container ships that it charters to other shipping and liner companies. For Q3 2020, Danaos reported a 26.4% year-over-year (YOY) increase in net income as operating revenue rose 6.4%. The company says that volumes have rebounded faster than anticipated from the initial slowdown earlier this year due to the COVID-19 pandemic.
- International Seaways Inc.: International Seaways owns and operates oceangoing shipping vessels. The company primarily transports crude oil and petroleum products, serving customers worldwide.
- Nordic American Tankers Ltd.: Norwegian shipping company Nordic American Tankers owns and charters oil tankers for transportation service worldwide. In Q3 2020, the company reported the strongest average daily revenue performance per vessel in several years. This performance, measured by Time Charter Equivalent (TCE), was $25,000 in Q3. TCE typically includes total average revenue per vessel per day, minus expenses, during a round-trip voyage.
Fastest Growing Shipping Stocks
These are the shipping stocks with the highest YOY earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.
|Fastest Growing Shipping Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|SFL Corp. Ltd. (SFL)||6.71||0.8||275.0|
|Star Bulk Carriers Corp. (SBLK)||7.95||0.8||136.4|
|A.P. Møller – Mærsk A/S (AMKBY)||10.32||40.1||100.0|
- SFL Corp. Ltd.: SFL Corp. is a Norway-based company that owns and charters crude oil tankers, bulk and ore vessels, container ships, jack up oil rigs, and similar vessels. The company serves customers around the world. During Q3 2020, SFL declared its 67th consecutive quarterly dividend, which was $0.15 per share. The company said COVID-19 had no material impact on the company's performance during the quarter.
- Star Bulk Carriers Corp.: Star Bulk Carriers owns and operates dry bulk carrier vessels. The company transports major bulks including iron ore, coal, and grain, as well as other materials. Star Bulk Carriers is based in Greece.
- A.P. Møller-Mærsk A/S: A.P. Møller-Mærsk A/S operates as an integrated transport and logistics company based in Denmark. The company operates a fleet of tankers, supply ships, container vessels, and oil drilling rigs, and also explores for and produces oil and gas around the world. The company reported a 1.3% YOY decline in revenue for Q3 and an 82.1% YOY increase in profit from continuing operations. According to the company's Q3 report, these results were fueled by rising land-based logistics revenue aided by acquisitions, and a stronger-than-expected recovery in demand and higher prices in the short-term market.
Shipping Stocks With the Most Momentum
These are the shipping stocks that had the highest total return over the last 12 months.
|Shipping Stocks With the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Danaos Corp. (DAC)||14.67||0.3||100.7|
|Matson Inc. (MATX)||58.82||2.5||61.4|
|A.P. Møller – Mærsk A/S (AMKBY)||10.32||40.1||43.0|
|Dow Jones Global Shipping Index||N/A||N/A||11.5|
- Danaos Corp.: See above for company description.
- Matson Inc.: Matson is a transportation and logistics company offering services throughout North America. The company provides domestic and international rail intermodal service, long haul and regional highway service, as well as supply chain and third-party logistics offerings.
- A.P. Møller-Mærsk A/S: See above for company description.
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YCharts. "YCharts." Accessed Dec. 13, 2020.
Danaos Corp. "Danaos Corporation Reports Third Quarter and Nine Months Results for the Period Ended September 30, 2020." Accessed Dec. 13, 2020.
Nordic American Tankers Ltd. "Nordic American Tankers Ltd (NYSE: NAT) – Report for the 3rd quarter – 2020 as a whole is expected to be a very good year for NAT." Accessed Dec. 13, 2020.
SFL Corp. Ltd. "SFL – Preliminary Q3 2020 results and quarterly cash dividend of $0.15 per share." Accessed Dec. 13, 2020.
A.P. Møller – Mærsk A/S. "Mærsk Interim Report Q3 2020," Pages 3, 5. Accessed Dec. 13, 2020.