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Genco Shipping (GNK) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Genco Shipping & Trading (GNK - Free Report) ? Shares have been on the move with the stock up 19.3% over the past month. The stock hit a new 52-week high of $23.5 in the previous session. Genco Shipping & Trading has gained 45.9% since the start of the year compared to the -0.4% move for the Zacks Transportation sector and the 35.2% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 24, 2022, Genco Shipping reported EPS of $1.99 versus consensus estimate of $1.89 while it beat the consensus revenue estimate by 13.45%.
For the current fiscal year, Genco Shipping is expected to post earnings of $4.22 per share on $386.97 million in revenues. This represents a -0.47% change in EPS on a -3.49% change in revenues. For the next fiscal year, the company is expected to earn $4.28 per share on $395.4 million in revenues. This represents a year-over-year change of 1.54% and 2.18%, respectively.
Valuation Metrics
Genco Shipping may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Genco Shipping has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 5.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 4.3X. On a trailing cash flow basis, the stock currently trades at 4.1X versus its peer group's average of 4.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Genco Shipping currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Genco Shipping meets the list of requirements. Thus, it seems as though Genco Shipping shares could have potential in the weeks and months to come.
How Does GNK Stack Up to the Competition?
Shares of GNK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) . ZIM has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. ZIM Integrated Shipping Services Ltd. beat our consensus estimate by 3.81%, and for the current fiscal year, ZIM is expected to post earnings of $36.76 per share on revenue of $12.64 billion.
Shares of ZIM Integrated Shipping Services Ltd. have gained 13.5% over the past month, and currently trade at a forward P/E of 2.07X and a P/CF of 1.61X.
The Transportation - Shipping industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GNK and ZIM, even beyond their own solid fundamental situation.
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Genco Shipping (GNK) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Genco Shipping & Trading (GNK - Free Report) ? Shares have been on the move with the stock up 19.3% over the past month. The stock hit a new 52-week high of $23.5 in the previous session. Genco Shipping & Trading has gained 45.9% since the start of the year compared to the -0.4% move for the Zacks Transportation sector and the 35.2% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 24, 2022, Genco Shipping reported EPS of $1.99 versus consensus estimate of $1.89 while it beat the consensus revenue estimate by 13.45%.
For the current fiscal year, Genco Shipping is expected to post earnings of $4.22 per share on $386.97 million in revenues. This represents a -0.47% change in EPS on a -3.49% change in revenues. For the next fiscal year, the company is expected to earn $4.28 per share on $395.4 million in revenues. This represents a year-over-year change of 1.54% and 2.18%, respectively.
Valuation Metrics
Genco Shipping may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Genco Shipping has a Value Score of A. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 5.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 4.3X. On a trailing cash flow basis, the stock currently trades at 4.1X versus its peer group's average of 4.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Genco Shipping currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Genco Shipping meets the list of requirements. Thus, it seems as though Genco Shipping shares could have potential in the weeks and months to come.
How Does GNK Stack Up to the Competition?
Shares of GNK have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) . ZIM has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. ZIM Integrated Shipping Services Ltd. beat our consensus estimate by 3.81%, and for the current fiscal year, ZIM is expected to post earnings of $36.76 per share on revenue of $12.64 billion.
Shares of ZIM Integrated Shipping Services Ltd. have gained 13.5% over the past month, and currently trade at a forward P/E of 2.07X and a P/CF of 1.61X.
The Transportation - Shipping industry is in the top 35% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GNK and ZIM, even beyond their own solid fundamental situation.