ZIM (ZIM) Surges 25.5%: Is This an Indication of Further Gains?

ZIM Integrated Shipping Services (ZIM) shares rallied 25.5% in the last trading session to close at $27.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.9% gain over the past four weeks.

The uptick followed ZIM's announcement that it has entered into a merger agreement, under which Hapag-Lloyd will acquire ZIM for $35.00 per share in cash. The total transaction represents an equity value of approximately $4.2 billion, and the price per share of $35 represents a 58% premium to ZIM's stock price on Feb 13, a 90% premium to ZIM's 90-day Volume Weighted Average Price or WVAP and a 126% premium to ZIM's unaffected stock price of $15.50 on August 8, 2025 prior to market speculation. The transaction, already approved by ZIM's board of directors, is expected to close in late 2026.

This container shipping company is expected to post quarterly loss of $1.01 per share in its upcoming report, which represents a year-over-year change of -121.7%. Revenues are expected to be $1.41 billion, down 34.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For ZIM, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ZIM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

ZIM is a member of the Zacks Transportation - Shipping industry. One other stock in the same industry, Euroseas Ltd. (ESEA), finished the last trading session 4.2% higher at $58.9. ESEA has returned 5% over the past month.

For Euroseas, the consensus EPS estimate for the upcoming report has changed -2.2% over the past month to $4.47. This represents a change of +34.2% from what the company reported a year ago. Euroseas currently has a Zacks Rank of #4 (Sell).

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research