ZIM Integrated Shipping Services (ZIM) closed at $25.39 in the latest trading session, marking a +1.68% move from the prior day. The stock lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow gained 1.88%, while the tech-heavy Nasdaq added 0.24%.
Prior to today's trading, shares of the container shipping company had lost 32.05% over the past month. This has lagged the Transportation sector's loss of 14.61% and the S&P 500's loss of 9.93% in that time.
Investors will be hoping for strength from ZIM Integrated Shipping Services as it approaches its next earnings release. On that day, ZIM Integrated Shipping Services is projected to report earnings of $10.17 per share, which would represent a year-over-year decline of 16.37%. Meanwhile, our latest consensus estimate is calling for revenue of $3.3 billion, up 5.18% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $40.64 per share and revenue of $13.05 billion. These totals would mark changes of +4.15% and +21.6%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for ZIM Integrated Shipping Services. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% lower. ZIM Integrated Shipping Services currently has a Zacks Rank of #4 (Sell).
In terms of valuation, ZIM Integrated Shipping Services is currently trading at a Forward P/E ratio of 0.61. For comparison, its industry has an average Forward P/E of 3.08, which means ZIM Integrated Shipping Services is trading at a discount to the group.
The Transportation - Shipping industry is part of the Transportation sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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