{"id":68117,"date":"2019-04-30T18:20:49","date_gmt":"2019-04-30T18:20:49","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=68117"},"modified":"2019-04-30T18:20:49","modified_gmt":"2019-04-30T18:20:49","slug":"shipping-stocks-to-buy-in-2019","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/shipping-stocks-to-buy-in-2019\/","title":{"rendered":"Shipping Stocks to Buy in 2019"},"content":{"rendered":"

The rising volume of e-commerce means that shipping companies are experiencing more and more parcel deliveries. Some of these companies have transitioned from mail delivery to focus on parcels. A major threat is the growth of Amazon\u2019s<\/a> own delivery system, but for now, there is still growth to be realized.<\/p>\n

Another important component for shipping companies is global trade. Globalization and increasing connectivity will drive the growth of these companies. There were some sell-offs last year due to the US – China trade war, but this situation looks to be resolving. There are also some concerns over the European market and their slow-down. In the long-term, they make great investments, as globalization will surely continue, and shipping companies are instrumental in facilitating trade. One important thing to watch out for, is that these companies follow the economy and will go up and down with the health of the market.<\/p>\n

🚚 Industrials<\/strong><\/p>\n

United Parcel Services (UPS-N)<\/a>
\nA world leader in parcel delivery and supply chain management solutions. Analysts expect that they will continue to grow and will transition from brick and mortar to online. They have large economies of scale and will survive, even with competition from Amazon.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"United\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tUnited Parcel Services (UPS-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about UPS-N: You want to buy stocks when they're down. A deal at 10.5x PE with 11% growth. Don't have to jump in right now, but he'd sell puts ~$75.Bad year, tariff uncertainty, high labour costs, elevated capex, high debt. Market didn't like reduction in business with AMZN, but it's a low-margin business. E-commerce…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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FedEx (FDX-N)<\/a>
\nA multinational courier delivery company. They are well positioned to benefit from increasing global trade and e-commerce. They experienced some sell-off due to the trade war and concern for Amazon, but they are still expected to grow due to trade volumes rising. A proxy for economic growth, and a good long term holding.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"FedEx\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tFedEx (FDX-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about FDX-N: Last night, they reported a surprisingly good quarter, so shares jumped 2.3%. It has struggled since summer 2024 and especially during the tariff spring of 2025. Is still -17.6% this year and has been downgraded recently. Total revenue is +3% YOY, driven by core FedEx express business. Adjusted EPS easily beat and…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Dryships (DRYS-Q)<\/a>
\nA dry bulk shipping company. They are a diversified owner and operator of ocean going cargo vessels. They have 31 vessels. They were the first dry bulk company to go public in the US.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Dryships\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tDryships (DRYS-Q) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about DRYS-Q: This is a sector that is dramatically out of favour. He keeps looking at them, and then he looks at the debt loads, the debt load on almost every one of these companies is horrible. A lot of them have also been listed for less than 10 years. So he wouldn\u2019t buy…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Diana Shipping Inc. (DSX-N)<\/a>
\nAll companies in the shipping sector carry a huge debt load, but analysts thinks this has a high upside along with high risk. They have one of the best balance sheets out of all their competitors. They announced that they were buying back 3.1%, of its outstanding common stock recently.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Diana\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tDiana Shipping Inc. (DSX-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about DSX-N: Current dividend yield very high (~20%). Would recommend trading with cycle. Not a good long term investment. Can be a good short term investment.\u00a0<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Eagle Bulk Shipping Inc (EGLE-Q)<\/a>
\nA holding company, that practices transportation of a broad range of dry bulk cargoes worldwide. They have been getting more and more investor attention, with buy recommendations. They beat expectations last quarter and are expected to announce a further increase in revenues on their next earning report.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Eagle\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tEagle Bulk Shipping Inc (EGLE-Q) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about EGLE-Q: Too risky despite paying a big dividend yield. Same goes with all the bulk shippers.<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Safe Bulkers Inc. (SB-N)<\/a>
\nThey are expecting a better second quarter and they recently experienced a jump in share prices. The stock price was going down before as they are a volatile name, but it is looking more positive recently.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Safe\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tSafe Bulkers Inc. (SB-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about SB-N: The Bulk Dry Index has come around not too badly. Indicators had been pointing him to stronger global growth, which he is happy with. However, he has moderated the developed nation part of that, so transports get moderated as well. He would be a little more cautious at this point, because in…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Star Bulk Carriers Corp. (SBLK-Q)<\/a>
\nIt\u2019s been beaten down a lot due to trade concerns, but it is at a good level to buy into. It is one of the leading shipping companies that cannot be kept down for too long as trading recovers.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Star\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tStar Bulk Carriers Corp. (SBLK-Q) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about SBLK-Q: Never trade this, because most of your return here comes from the dividend, a variable 20% divvy. Hold this at least one year.<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Seaspan Corp. (SSW-N)<\/a>
\nA containerships chartering company that practices long-term fixed-rate charters. Hedge funds are taking bullish position in SSW. They pay a dividend 5.75%.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Seaspan\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tSeaspan Corp. (SSW-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about SSW-N: A media company, and the whole sector was kind of turned upside down last year with the story of Netflix (NFLX-Q). Is Netflix going to be the new method of delivering content to consumers? He likes the category, but hasn\u2019t invested in this directly, but likes the idea. There is a good…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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⚡ Energy<\/strong><\/p>\n

Golar LNG Ltd (GLNG-Q)<\/a>
\nA liquefied natural gas shipping company based in Bermuda. They have good access to the US LNG market and it\u2019s considered a long-term play on robust gas demand.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Golar\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tGolar LNG Ltd (GLNG-Q) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about GLNG-Q: Long-term play on robust gas demand. In a great spot with access to US LNG market growth in next few years. LNG market is tight than usual right now, but it\u2019s only going to get better in December, and you can hold for a number of years. Yield is 0.7%. (Analysts\u2019 price…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Nordic American Tankers (NAT-N)<\/a>
\nThey own, lease, and charter double hull Suezmax oil tankers. Their share prices are linked to how oil does, so this will go up and down with the sector.<\/p>\n

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\n\t\t\t\t\n\t\t\t\t\t\"Nordic\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tNordic American Tankers (NAT-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about NAT-N: A ceasefire in the Middle east would lead to some normalization of freight rates. There is political risk. It is in the bulk tanker space and is not his preferred name.<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Ship Finance International (SFL-N)<\/a>
\nThey just experienced decent share price growth over the last couple months. The valuation is still reasonable but growth is limited. Analysts recommend to watch closely the stock so you can buy on weakness. They are another company that is volatile that follows the general market.<\/p>\n

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\n\t\t\t\t\n\t\t\t\t\t\"Ship\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tShip Finance International (SFL-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about SFL-N: Strong dividend, but challenges on earnings. Recognize that dividend is only one part of overall return from a stock. A dividend that's too high for too long can be punitive to health of the business overall. Yield approaching 10%.<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

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Teekay Shipping Corp. (TK-N)<\/a>
\nTheir core business is international crude oil and gas marine transportation. They recently sold off their remaining interests in teekay offshore to brookfield for $100 million to refocus on their core business.<\/p>\n

\n\t\t\t
\n\t\t\t\t\n\t\t\t\t\t\"Teekay\t\t\t\t<\/a>\n\t\t<\/div>\n\t\n\t
\n\t\t\n\t\t\tTeekay Shipping Corp. (TK-N) \u2014 Stockchase\t\t<\/a>\n\t<\/div>\n\t
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Opinion about TK-N: Teekay is one of the world\u2019s leading marine services company and a vital link in the global energy supply chain. We bring energy where it\u2019s needed \u2013 anywhere in the world \u2013 to power the global economy and to improve people\u2019s lives. That\u2019s the Teekay SPIRIT. We put safety first. No compromises.…<\/p>\n\t\t<\/a>\n\t<\/div>\n\t

\n\t\t\"stockchase.com\"\t\tstockchase.com\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The rising volume of e-commerce means that shipping companies are experiencing more and more parcel deliveries. Some of these companies have transitioned from mail delivery to focus on parcels. A major threat is the growth of Amazon\u2019s own delivery system, […]<\/p>\n","protected":false},"author":9,"featured_media":68200,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[],"class_list":["post-68117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/68117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=68117"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/68117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/68200"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=68117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=68117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=68117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}