ZIM Integrated Shipping ServicesNYSE: ZIM

Why Zim Integrated Shipping Services Inched Higher Today

As expected by me, Israel-based liner company ZIM Integrated Shipping Services Ltd. reported strong Q3 2024 results and raised full-year projections significantly. The company declared an aggregate $3.65 per share in cash dividends for Q3, including a special cash dividend of $0.84 per share. Based on my expectations for a strong finish to the year, I am projecting the company's final dividend for FY2024 to exceed $4 per share.

ZIM Integrated Shipping Services (ZIM) came out with quarterly earnings of $9.34 per share, beating the Zacks Consensus Estimate of $7.45 per share. This compares to loss of $1.97 per share a year ago.

ZIM Integrated stock price rallied for three consecutive weeks and reached its highest level since August 2022. It has soared by over 334% from its lowest level in 2023, making it one of the best-performing companies in Wall Street.

Investors interested in Transportation - Shipping stocks are likely familiar with ZIM Integrated Shipping Services (ZIM) and Kirby (KEX). But which of these two stocks offers value investors a better bang for their buck right now?

ZIM is bound to complete its fleet upgrade by year-end, with 46 new vessels introduced since 2021, improving capacity and lowering fuel costs. The MSC and Hapag-Lloyd partnerships could lead to new trade routes, better fleet utilization, and operational savings, starting in 2025. Institutional ownership jumped 15% in the past quarter, with activist fund Jane Street taking a 5.3% stake, signaling increased confidence in ZIM's undervaluation.

ZIM's Q3 performance is expected to have been aided by high revenues and carried volumes.

ZIM (ZIM) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.