ZIM Integrated Shipping Services (ZIM) ended the recent trading session at $14.08, demonstrating a -3.1% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
The container shipping company's shares have seen an increase of 2.25% over the last month, surpassing the Transportation sector's loss of 2.03% and falling behind the S&P 500's gain of 2.74%.
Market participants will be closely following the financial results of ZIM Integrated Shipping Services in its upcoming release. In that report, analysts expect ZIM Integrated Shipping Services to post earnings of $1.14 per share. This would mark a year-over-year decline of 87.79%. In the meantime, our current consensus estimate forecasts the revenue to be $1.8 billion, indicating a 34.75% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.32 per share and a revenue of $7.08 billion, representing changes of -81.37% and -15.94%, respectively, from the prior year.
Any recent changes to analyst estimates for ZIM Integrated Shipping Services should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.01% higher. ZIM Integrated Shipping Services currently has a Zacks Rank of #3 (Hold).
With respect to valuation, ZIM Integrated Shipping Services is currently being traded at a Forward P/E ratio of 4.38. This expresses a discount compared to the average Forward P/E of 11.35 of its industry.
Also, we should mention that ZIM has a PEG ratio of 0.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZIM's industry had an average PEG ratio of 0.51 as of yesterday's close.
The Transportation - Shipping industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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ZIM Integrated Shipping Services Ltd. (ZIM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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