A strong stock as of late has been Global Ship Lease (GSL). Shares have been marching higher, with the stock up 13.1% over the past month. The stock hit a new 52-week high of $35.91 in the previous session. Global Ship Lease has gained 63.4% since the start of the year compared to the -2.5% move for the Zacks Transportation sector and the 12.2% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 10, 2025, Global Ship Lease reported EPS of $2.62 versus consensus estimate of $2.27 while it beat the consensus revenue estimate by 4.61%.
For the current fiscal year, Global Ship Lease is expected to post earnings of $10.25 per share on $763.9 in revenues. This represents a 2.6% change in EPS on a 7.43% change in revenues. For the next fiscal year, the company is expected to earn $10.22 per share on $769.19 in revenues. This represents a year-over-year change of -0.29% and 0.69%, respectively.
Valuation Metrics
Global Ship Lease may be at a 52-week high right now, but what might the future hold for the stock? 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 they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 3.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.2X. On a trailing cash flow basis, the stock currently trades at 2.7X versus its peer group's average of 3.3X. 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 supersedes any trend on the style score front. 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 fits the bill. Thus, it seems as though Global Ship Lease shares could still be poised for more gains ahead.
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 Seanergy Maritime Holdings Corp (SHIP). SHIP has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of B.
Earnings were strong last quarter. Seanergy Maritime Holdings Corp beat our consensus estimate by 45.65%, and for the current fiscal year, SHIP is expected to post earnings of $1.46 per share on revenue of $152.56 million.
Shares of Seanergy Maritime Holdings Corp have gained 25.6% over the past month, and currently trade at a forward P/E of 10.04X and a P/CF of 2.91X.
The Transportation - Shipping industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GSL and SHIP, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Global Ship Lease, Inc. (GSL): Free Stock Analysis Report Seanergy Maritime Holdings Corp (SHIP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
