You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
Add to Favorites
Share
Frontline Plc : Jefferies Cuts Target Price To $26 From $30
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
Add to Favorites
Share
Is Buying ZIM Stock a Smart Move Before It Reports Q3 Earnings?
ZIM Integrated Shipping Services Ltd. ZIM is set to report third-quarter 2024 results on Nov. 20, before market open.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for third-quarter 2024 earnings was revised upward in the past 60 days to $6.19 per share. The consensus mark implies a massive 414.2% upsurge from the year-ago actual. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $2.21 billion, suggesting a 73.8% uptick from the year-ago actual.
ZIM has a mixed earnings surprise history, as reflected in the chart below.
Earnings Whispers for Q3
Our proven model predicts an earnings beat for ZIM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
ZIM has an Earnings ESP of +29.24% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Shape ZIM’s Q3 Results
We expect the company’s bottom-line performance to have been hit by escalated voyage operating costs. High labor costs are also likely to have been spoilsports.
On a brighter note, continued fleet expansion initiatives are likely to have driven the company’s performance. Reduced container availability due to Red Sea tensions is expected to have raised freight costs. This is anticipated to have aided the quarterly performance of ZIM, which provides service to East Mediterranean and Israeli ports. Revenues and carried volumes are expected to have surged due to the disruptions. Lower capacity is anticipated to have boosted earnings.
Price Performance & Valuation
On a year-to-date basis, ZIM shares have surged 144.9%, outperforming the industry’s gain of 19%. The company’s shares have also outperformed fellow industry players Frontline FRO and SeanergyMaritimeHoldings SHIP in the same timeframe.
YTD Price Comparison
From a valuation perspective, ZIM is trading at a discount compared with the industry based on its price/sales ratio. The company is trading at a forward sales multiple of 0.45 compared with its industry’s 2.33. The reading is also below its median of 1.73 over the last three years.
Investor Considerations
Heightened freight rates due to the Red Sea shipping crisis are turning out to be a huge positive for ZIM. The crisis caused by the attacks by Yemen’s Houthi militants on vessels in the Red Sea has prompted many shipping companies, including ZIM, to hit a transit pause through this route.
The companies are using the longer and costlier route around the Cape of Good Hope in South Africa rather than going through the Suez Canal. Reduced container availability due to the Red Sea tensions has resulted in higher freight costs. The company’s long-term prospects are also solid.
ZIM’s long-term (3-5 years) earnings growth rate is an impressive 47.4%, higher than its industry’s 29.4%.
Final Verdict
Given the positivities surrounding the company, as highlighted throughout the write-up, we believe that investors should add ZIM stock to their portfolios for healthy returns ahead of its earnings release on Nov. 20. The company’s current Zacks Rank supports our stance.
Zacks Investment Research
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
Add to Favorites
Share
Norway stocks lower at close of trade; Oslo OBX down 0.49%
Investing.com – Norway stocks were lower after the close on Wednesday, as losses in the Media, Transport and Diversified Financials sectors led shares lower.
At the close in Oslo, the Oslo OBX declined 0.49% to hit a new 1-month low.
The best performers of the session on the Oslo OBX were Kongsberg Gruppen ASA (OL:KOG), which rose 4.14% or 49.00 points to trade at 1,234.00 at the close. Meanwhile, Frontline Ltd (OL:FRO) added 3.11% or 6.40 points to end at 211.90 and Nel ASA (OL:NEL) was up 2.32% or 0.08 points to 3.53 in late trade.
The worst performers of the session were Tomra Systems ASA (OL:TOM), which fell 3.15% or 4.70 points to trade at 144.50 at the close. Storebrand ASA (OL:STB) declined 2.97% or 3.60 points to end at 117.60 and Nordic Semiconductor ASA (OL:NOD) was down 2.37% or 2.39 points to 98.26.
Falling stocks outnumbered advancing ones on the Oslo Stock Exchange by 165 to 117 and 21 ended unchanged.
Shares in Kongsberg Gruppen ASA (OL:KOG) rose to all time highs; rising 4.14% or 49.00 to 1,234.00.
Crude oil for December delivery was down 0.10% or 0.07 to $68.05 a barrel. Elsewhere in commodities trading, Brent oil for delivery in January fell 0.14% or 0.10 to hit $71.79 a barrel, while the December Gold Futures contract rose 0.20% or 5.20 to trade at $2,611.50 a troy ounce.
EUR/NOK was up 0.04% to 11.77, while USD/NOK rose 0.54% to 11.11.
The US Dollar Index Futures was up 0.19% at 106.15.
Risk Warnings and Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.
US
VN
TW
