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ZIM Integrated Shipping Services (ZIM) shares rallied 14% in the last trading session to close at $16.26. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.5% gain over the past four weeks.
The uptick followed the 90-day agreement between the United States and China to reduce tariffs. The development has rekindled hopes of easing global trade tensions. With shipping stocks like ZIM being responsible for transporting the majority of goods involved in world trade, positive trade-related news is a welcome development for the entire shipping industry.
This container shipping company is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of +121.3%. Revenues are expected to be $1.73 billion, up 11% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For ZIM, the consensus EPS estimate for the quarter has been revised 17.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ZIM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
ZIM is a member of the Zacks Transportation - Shipping industry. One other stock in the same industry, Global Ship Lease (GSL), finished the last trading session 5.3% higher at $23.23. GSL has returned 11.2% over the past month.
For Global Ship Lease , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.27. This represents a change of -10.3% from what the company reported a year ago. Global Ship Lease currently has a Zacks Rank of #4 (Sell).
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ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).