Does ZIM Integrated Shipping Services Ltd. (ZIM) offer a good opportunity for investors?

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) stock fell -0.53% on Tuesday to $18.69 against a previous-day closing price of $18.79. With 2.79 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.2 million shares. During the session, the Marine Shipping company that operates in wider Industrials sector, reached to the highest price of $19.00 whereas the lowest price it dropped to was $18.26. The 52-week range on ZIM shows that it touched its highest point at $91.23 and its lowest point at $16.23 during that stretch. It currently has a 1-year price target of $29.86. With its current market cap of 2.14 billion, ZIM has annualized dividend of $30.05 while the current yield stands at 160.78%.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ZIM was up-trending over the past week, with a rise of 4.36%, but this was up by 5.41% over a month. Three-month performance dropped to -20.77% while six-month performance fell -59.78%. The stock lost -67.84% in the past year, while it has gained 8.73% so far this year. A look at the trailing 12-month EPS for ZIM yields 49.06 with Next year EPS estimates of 0.86. For the next quarter, that number is 2.96. This implies an EPS growth rate of 766.20% for this year and -97.70% for next year.

Float and Shares Shorts:

At present, 120.05 million ZIM shares are outstanding with a float of 80.39 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.58 million, which was 11.31% higher than short shares on Sep 14, 2022. In addition to Mr. Eliyahu Glickman as the firm’s Pres & CEO, Mr. Xavier Destriau serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 44.15% of ZIM’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.02% of ZIM, in contrast to 29.26% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in ZIM with 3.23% of the stake, Arrowstreet Capital LP holds 3,882,162 shares worth 3,882,162. A second-largest stockholder of ZIM, Renaissance Technologies LLC, holds 3,012,438 shares, controlling over 2.51% of the firm’s shares. Acadian Asset Management LLC is the third largest shareholder in ZIM, holding 2,959,537 shares or 2.47% stake. With a 0.64% stake in ZIM, the Mackenzie Global Equity Income Fu is the largest stakeholder. A total of 767,550 shares are owned by the mutual fund manager. The iShares Tr. – Core MSCI EAFE ETF, which owns about 0.36% of ZIM stock, is the second-largest Mutual Fund holder. It holds 432,609 shares valued at 7.44 million. Vanguard High Dividend Yield Inde holds 0.30% of the stake in ZIM, owning 362,964 shares worth 6.24 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ZIM since 6 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With ZIM analysts setting a high price target of $26.50 and a low target of $15.50, the average target price over the next 12 months is $19.43. Based on these targets, ZIM could surge 41.79% to reach the target high and fall by -17.07% to reach the target low. Reaching the average price target will result in a growth of 3.96% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. ZIM will report FY 2022 earnings on 03/06/2024. Analysts have provided yearly estimates in a range of $38.40 being high and $35.56 being low. For ZIM, this leads to a yearly average estimate of $37.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ZIM Integrated Shipping Services Ltd. surprised analysts by $0.27 when it reported $9.66 EPS against a consensus estimate of $9.39. The surprise factor in the prior quarter was -$1.74. Based on analyst estimates, the high estimate for the next quarter is $3.66 and the low estimate is $0.52. The average estimate for the next quarter is thus $2.50.

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