ZIM Integrated Shipping ServicesNYSE: ZIM

In the latest trading session, ZIM Integrated Shipping Services (ZIM) closed at $24.04, marking a -1.07% move from the previous day.

I expect an earning loss from ZIM Integrated Shipping Services Ltd. stock for 2025 H1, and thus do not expect a dividend payout. The expectation is based primarily on considerations of fuel costs and ZIM's cash flow obligations. Shipping rates fluctuations add further uncertainties, especially with the ongoing Red Sea situation.

ZIM (ZIM) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

HAIFA, Israel , Oct. 30, 2024 /PRNewswire/ -- ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) announced today that the Company will release its third quarter 2024 financial results on Wednesday, November 20, 2024, before the U.S. financial markets open.

In the closing of the recent trading day, ZIM Integrated Shipping Services (ZIM) stood at $22.74, denoting a -0.26% change from the preceding trading day.

With the ZIM stock being undervalued and having several tailwinds, we assess the investmentworthiness of the shipping company.

On Monday, leading liner company A.P. Moller-Maersk, or “Maersk” reported strong preliminary Q3 results and raised full-year guidance for the fourth time in less than six months. The news bodes well for smaller competitor ZIM Integrated Shipping Services or “ZIM” particularly given ZIM's higher spot market exposure and less impact from the provision of lower-margin services. As a result, I would expect ZIM to report stellar third quarter results and raise full-year guidance materially next month.

If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, ZIM (ZIM) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.

ZIM has been upgraded to a speculative buy for dividend oriented investors, thanks to the promising market tailwinds and the projected expansion in its profitability. With the management already raising their FY2024 guidance, we may see H2'24 bring forth richer dividend payouts indeed. Most of ZIM's tailwinds are naturally attributed to the longer transit times due to the Red Sea disruptions and the ongoing dockworkers' strike in the US.