5 Best Marine Shipping Stocks to Buy Now

4. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Number of Hedge Fund Holders: 17

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) engages in door-to-door and port-to-port container shipping in Israel and internationally. It is one of the best marine shipping stocks to watch. On June 21, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) announced that it has strengthened its collaboration with the cross-border trade financing platform, 40Seas. This partnership aims to enhance the integration of 40Seas’ adaptable digital financing solution through ZIM’s website.

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), compared to 14 funds in the prior quarter. Dmitry Balyasny’s Balyasny Asset Management is a prominent stakeholder of the company, with 425,564 shares worth $10 million. 

Here is what Evermore Global Advisors has to say about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) in its Q2 2021 investor letter:

“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.

There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 full year EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”