In this article, we will take a look at the 5 best shipping and container stocks to buy. To go through our recent market trends and activity analysis, you can go directly to see the 13 Best Shipping and Container Stocks to Buy.
5. Nordic American Tankers Limited (NYSE:NAT)
Number of Hedge Fund Holders: 15
Nordic American Tankers Limited (NYSE:NAT) is a maritime industry player specializing in tanker vessels, particularly in the transport of crude oil. With a remarkable track record, the company has consistently distributed dividends to its shareholders for 28 consecutive years, currently providing a quarterly dividend of $0.12 per share. As of November 26, the stock boasts a dividend yield of 10.91%.
Nordic American Tankers Limited (NYSE:NAT), a specialist in Suezmax vessels, is enhancing its fleet through the acquisition of a South Korean-built ship. While specific details such as the vessel’s name and purchase price remain undisclosed, NAT revealed that the ship has been under the operation and diligent maintenance of a reputable shipowner for the past six to seven years. This transaction will result in Nordic American Tankers, led by Herbjorn Hansson, expanding its fleet to a total of 20 Suezmax vessels.
As of the close of Q3 2023, 15 hedge funds in Insider Monkey’s database reported having stakes in Nordic American Tankers Limited (NYSE:NAT), compared with 16 a quarter earlier. These stakes are worth collectively over $50.58 million.
4. Ardmore Shipping Corp. (NYSE:ASC)
Number of Hedge Fund Holders: 15
Ardmore Shipping Corporation (NYSE:ASC) is a company based in Bermuda, specializing in the global seaborne transportation of petroleum products and chemicals. The company caters to oil majors, oil and chemical traders, as well as pooling service providers.
On November 8, Ardmore Shipping Corp. (NYSE:ASC) announced strong third-quarter results, posting adjusted earnings of $20.3 million or $0.49 per share. The company is currently benefiting from robust product and chemical tanker markets, and these conditions are anticipated to strengthen even further in the fourth quarter. Ardmore’s emphasis on effective cost management, favorable spot trading performance, and a solid liquidity position have strategically positioned the company for the anticipated growth in the upcoming winter market.
According to Insider Monkey’s data, 15 hedge funds were bullish on Ardmore Shipping Corporation (NYSE:ASC) at the end of September 2023, compared to 16 funds in the prior quarter. Chuck Royce’s Royce & Associates is the biggest position holder in the company, with 758,306 shares worth $9.86 million.
3. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 17
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands as a prominent global container liner shipping company with an asset-light approach. The company manages a fleet of almost 100 vessels, predominantly chartered-in under short-term arrangements. This strategic approach enables ZIM to flexibly adapt its capacity to evolving market dynamics, optimize vessel deployment, maintain high utilization levels, and capitalize on specific trade opportunities.
In September, the Swiss shipping giant MSC and ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) inked an operational collaboration agreement covering various trade routes. The cooperative efforts include services linking the Indian subcontinent with the East Mediterranean, the East Mediterranean with Northern Europe, and services connecting East Asia with Oceania. Additionally, the agreement between ZIM and MSC involves vessel sharing, slot purchases, and swap arrangements.
At the end of Q3 2023, 17 hedge funds in Insider Monkey’s database reported having stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), compared with 13 in the previous quarter. The collective value of these stakes is over $37.4 million. With over 2 million shares, Citadel Investment Group was the company’s largest stakeholder in Q3.
2. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 22
Matson, Inc. (NYSE:MATX), headquartered in Honolulu, Hawaii, is an American shipping and navigation services company established in 1882. The company’s subsidiary, Matson Navigation Company, offers ocean shipping services spanning the Pacific, serving destinations such as Hawaii, Alaska, Guam, Micronesia, the South Pacific, China, and Japan.
According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on Matson, Inc. (NYSE:MATX), compared to 17 funds in the prior quarter. Ryan Tolkin’s Schonfeld Strategic Advisors is a prominent stakeholder of the company, with 158,630 shares worth $14.07 million.
The London Company Small Cap Strategy made the following comment about Matson, Inc. (NYSE:MATX) in its second quarter 2023 investor letter:
“Matson, Inc. (NYSE:MATX) – Shares of MATX rallied during Q2 as the company’s ocean freight services benefited from stabilizing market conditions and freight rates. Transpacific trade dynamics may improve as retailers continue to work through inventory, while the return of tourism should help support demand in its Jones Act markets. MATX’s success since the onset of the pandemic has enabled permanent volume additions in the China trade lane, a transformed balance sheet, and significant share count reduction. MATX remains strategically positioned as a US Jones Act shipping operator and its expedited freight service continues to offer an attractive value proposition for its customers.”
1. Kirby Corporation (NYSE:KEX)
Number of Hedge Fund Holders: 22
Established in 1921 and based in Houston, Texas, Kirby Corporation (NYSE:KEX) is a prominent operator in the domestic tank barge industry. The company’s Marine Transportation segment specializes in transporting bulk liquid products, encompassing petrochemicals, black oils, refined petroleum products, and agricultural chemicals.
Kirby Corporation (NYSE:KEX) reported net earnings for the third quarter ending September 30, 2023, of $63.0 million or $1.05 per share. This represents an increase from earnings of $39.1 million, or $0.65 per share, in the third quarter of 2022. The company’s consolidated revenues for the third quarter of 2023 were $764.8 million, up from $745.8 million reported for the same period in 2022.
According to Insider Monkey’s first quarter database, 22 hedge funds were bullish on Kirby Corporation (NYSE:KEX), compared to 17 funds in the prior quarter.
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