Strong Bullish at Sea: Buy Shipping Stock as Prices Soar 43%

When I go to the beach, I spend most of my time looking at boats on the water. I’m amazed at the size of ships at sea … big container ships dwarf smaller pleasure craft as they pass by. Living close to the ports of Miami and Fort Lauderdale, I’ve noticed more container ship traffic in and out of those busy operations. It’s made me look into…

companies shipping goods across the Atlantic Ocean.

And I found a solid one to invest in today.

Using Chief Investment Strategist Adam O’Dell’s proprietary six-factor Green Zone Ratings system, I found a “Strong Bullish” shipping stock:

  • It transports iron, coal, grain and other materials worldwide.
  • It’s up 41% since late January.
  • The stock recently matched its 52-week high.

Here’s why I think it will go even higher from here.

Shipping Costs Rise Again

The Baltic Dry Index is a bellwether of the broader shipping market.

It tracks the cost of current freight on various shipping routes. As you can see from the chart below, the index dropped after reaching a high in September 2021.

It’s climbing again.

The index hit above 5,000 in September 2021 — when shipping prices reached a peak.

It pared off close to 4,000 points through January of this year.

However, in February, the Baltic Dry index rose 43%. That means global shipping prices are back on the uptrend.

And I’m targeting that momentum with one shipping stock that looks fantastic right now.

Growth, Momentum AND Value in One Shipping Stock

Diana Shipping Inc. (NYSE: DSX) is a Greek global transportation company with a fleet of 34 dry bulk vessels operating around the world.

It transports cargo that is necessary for the global economy:

  • Iron ore.
  • Coal.
  • Various grains like wheat, soybeans and corn.

Here’s why its strong recent performance is expected to get better from here.

COVID-19 hammered the global shipping industry.

Diana Shipping’s total revenue dropped from $220.7 million in 2019 to $169.7 million in 2020 — a 23% year-over-year decline.

As COVID-19 subsided in 2021, the global shipping industry found its sea legs (pun intended), and DSX’s total revenue reached $214.2 million last year — a 26% increase from 2020.

Estimates call for a massive jump in the company’s annual revenue. Projections suggest DSX could hit $290.1 million total revenue this year. That would be a new high for the company and 70% higher than where it was during the worst point of the pandemic.

Since late January, DSX has jumped 41% thanks to increased shipping costs and higher demand for oceanic transportation.

In the last 12 months, DSX shares are up 75%. That crushes the broader cargo transportation market’s 18% gain in the same time.

That shows the “maximum momentum” we love to see in stocks!

Diana Shipping Inc. Stock Rating

Using Adam’s six-factor Green Zone Ratings system, Diana Shipping Inc. stock scores a 94 overall.

That means we’re “Strong Bullish” on the stock and expect it to beat the broader market by at least…

 

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