ZIM Integrated: Container Shipping Pessimism Is Overdone, Upside Ahead

Sunrise Analysis
2.92K Followers

Summary

  • ZIM shares have faced immense pressure in recent months as concerns over rising inflation and a pending recession weigh on demand.
  • Despite the potentially dreary demand picture, investors seem to be ignoring the continued supply side pressure from port congestion that could send rates higher again.
  • Additionally, even at current rates, ZIM is extremely profitable, and peer results imply potential for a fantastic quarter.
  • With shares now trading at roughly 1x 2022 earnings, I believe ZIM is oversold and undervalued.

Tug Boat Maneuvering Cargo Ship at Dockside in Port of Long Beach

halbergman

ZIM Integrated Shipping (NYSE:ZIM) has lost more than 50% of its market cap since its highs earlier this year. With inflation soaring, the Fed's decisions keeping the market on edge, and concerns of a recession mounting; the picture for container shipping might appear

This article was written by

2.92K Followers
I'm an individual investor. I generally invest for the long term and look for companies at an attractive price that have the ability to grow naturally and who stand to benefit from large trends in the economy. I try to provide insight into how new developments at certain companies will affect their long-term prospects. I also try to share other interesting investment ideas with investors where I think there is significant mispricing or potential for growth.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article is for informational purposes only and should not be regarded as investment advice. This article should not be the sole basis for a financial decision, including the purchase or sale of stock. Any personal financial decision should be made on the basis of your own research and consideration of your unique financial goals and investing ideals.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About ZIM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on ZIM

Related Stocks

SymbolLast Price% Chg
ZIM
--