2 Shipping Stocks to Buy, 2 to Avoid By StockNews

0
20
© Reuters. 2 Shipping Stocks to Buy, 2 to Avoid

After suffering a setback last year due to COVID-19-related restrictions, the shipping industry has been recovering this year with increasing demand for shipping due to the reopening of industries around the globe. So, we think it could be wise to bet now on fundamentally sound shipping stocks Costamare (NYSE:) and Safe Bulkers (NYSE:). Conversely, shippers Golden Ocean Group (NASDAQ:) and Castor Maritime (CTRM) look significantly overvalued at their current price levels. So, they are best avoided now. Read on.The shipping industry plays a crucial role in transporting goods and raw materials around the globe. Some 80% of goods globally are transported by ships. And it is telling that several industries were negatively affected recently when the Ever-Given, one of the world’s largest container ships, got stuck in the Suez Canal.

The recent closure of the Ningbo-Zhoushan port in China also highlighted the importance of the shipping industry. The (BDI) recently declined from a more than 11-year high but recorded its second monthly gain in August due to global shipping constraints and robust demand. Because the need to transport goods is expected to remain high in the coming months, the shipping industry should achieve decent growth.

Therefore, we think it could be wise to scoop up the shares of fundamentally sound shipping stocks Costamare Inc . (CMRE) and Safe Bulkers, Inc. (SB). However, since the prices of shares of Golden Ocean Group Limited (GOGL) and Castor Maritime Inc. (CTRM) have far exceeded their intrinsic values, they are best avoided now.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.