Shares of Global Ship Lease (GSL) have been strong performers lately, with the stock up 12.7% over the past month. The stock hit a new 52-week high of $30.98 in the previous session. Global Ship Lease has gained 39% since the start of the year compared to the -5.6% gain for the Zacks Transportation sector and the 2.7% 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 August 5, 2025, Global Ship Lease reported EPS of $2.67 versus consensus estimate of $2.15 while it beat the consensus revenue estimate by 6.21%.
For the current fiscal year, Global Ship Lease is expected to post earnings of $9.6 per share on $707.61 in revenues. This represents a -3.9% change in EPS on a -0.49% change in revenues. For the next fiscal year, the company is expected to earn $9.87 per share on $730.23 in revenues. This represents a year-over-year change of 2.86% and 3.2%, respectively.
Valuation Metrics
Though Global Ship Lease has recently hit a 52-week high, what is next for Global Ship Lease? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb 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.
Global Ship Lease has a Value Score of A. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 3.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 10.1X. On a trailing cash flow basis, the stock currently trades at 2.3X versus its peer group's average of 3.1X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Global Ship Lease an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Global Ship Lease currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 Global Ship Lease meets the list of requirements. Thus, it seems as though Global Ship Lease shares could have potential in the weeks and months to come.
How Does GSL Stack Up to the Competition?
Shares of GSL 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 Euroseas Ltd. (ESEA). ESEA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Euroseas Ltd. beat our consensus estimate by 12.24%, and for the current fiscal year, ESEA is expected to post earnings of $15.47 per share on revenue of $235.3 million.
Shares of Euroseas Ltd. have gained 13% over the past month, and currently trade at a forward P/E of 3.43X and a P/CF of 2.96X.
The Transportation - Shipping industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for GSL and ESEA, even beyond their own solid fundamental situation.
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Global Ship Lease, Inc. (GSL): Free Stock Analysis Report Euroseas Ltd. (ESEA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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