A resistance line has formed in the chart of Diana Shipping Inc . (NYSE:). After getting close to this level a couple of times, the stock has just fallen back again. But if a reversal occurs and DSX breaks through the resistance line, a breakout is expected. Read more to learn how to profit from this trade.Diana Shipping Inc. (DSX) provides shipping transportation services. The company, through its subsidiaries, operates a fleet of vessels consisting of dry bulk carriers such as Panamax, Kamsarmax, Post-Panamax, Capesize and Newcastlemax vessels. Using this fleet, the firm provides transportation services for various goods including coal, iron ore, and grains.
While earnings missed estimates in the most recent quarter, they were still up year over year. The company is benefiting from strength in the dry bulk shipping market as the economy opens up and more companies ship products. Plus, the rates on Supramax and Handysize transport ships are getting closer to rates last seen in 2008, which was a record year.
The company had $155 million in cash as of the most recent quarter, which compares favorably to no short-term debt. From a growth standpoint, analysts expect earnings to soar 266.7% year over year, leading to a Growth Grade of B in our POWR Ratings system.
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