The stock market has been volatile lately due to investors’ concerns surrounding the continuing increase in COVID-19 cases and a potential debt default by China’s troubled property giant Evergrande Group. However, the major stock market indexes…
rallied yesterday after the Federal Reserve pledged to keep its bond-buying program and ultralow interest-rate policy in place for now to support the economy. In addition, Evergrande is expected to pay interest payments on an onshore bond.
According to the Labor Department, the consumer price index (CPI) in August increased 5.3% from a year earlier and 0.3% from July, which was lower than expected, signaling that inflation may be starting to cool. Furthermore, the economy has seen a substantial decline in the unemployment rate recently.
Against this backdrop, we think it could be wise to bet on quality stocks ZIM Integrated Shipping Services Ltd. (ZIM – Get Rating), Teradata Corporation (TDC – Get Rating), and Dillard’s, Inc. (DDS – Get Rating). These stocks are rated Strong Buy in our proprietary POWR Ratings system. They have gained more than 100% in price this year and still have plenty of upside to deliver.
Headquartered in Haifa, Israel, ZIM provides container shipping and related services, and operates 101 vessels with a global network of 69 weekly lines. In addition, the company offers seaborne transportation and logistics services comprising dry, reefer, project, out of gauge, breakbulk and dangerous cargo services.
On June 21, 2021, ZIM and Alibaba.com (BABA) agreed to extend their cooperation agreement for two more years. Eli Glickman, ZIM’s President and CEO, said, “It is part of our innovative strategic vision, and we are very proud to extend and expand this partnership with Alibaba.com to enhance the customer experience and further capitalize on growing eCommerce trends.”
ZIM’s revenues increased 200% year-over-year to $2.38 billion for its fiscal second quarter, ended June 30, 2021. The company’s adjusted EBITDA grew 820% year-over-year to $1.34 billion, while its net income increased 3,452% year-over-year to $888 million. Also, its adjusted EPS came in at $7.38, up 3108.7% year-over-year.
ZIM’s EPS is expected to be $23.79 in its fiscal year 2021, representing a 373.9% year-over-year increase. In addition, the company’s revenue is expected to increase 158.8% year-over-year to $2.62 billion for the quarter ending September 30, 2021. The stock has gained 378.3% in price year-to-date to close yesterday’s trading session at $55.
ZIM’s POWR Ratings reflect this promising outlook. The company has an overall A rating, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
The stock has a B grade for Growth, Value, Momentum, and Quality. Within the Shipping industry, ZIM is ranked #2 of 48 stocks. To see the additional POWR Ratings for ZIM (Stability and Sentiment), click here.
Hybrid cloud analytics software provider TDC’s solutions and services are composed of software, hardware, and related business consulting and support services. It offers primarily Teradata Vantage, which is an analytics platform. Also, the company serves various industries such as financial services, government, retail, and telecommunications. TDC is headquartered in San Diego, Calif.
On May 4, 2021, TDC announced a set of enhancements for Teradata Vantage on…
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