With strong demand for commodities amid continued supply-chain issues, shipping stocks are the focus on the Global Leaders list of the IBD Screen of the Day.
The screen scans for global stocks that have outstanding growth and IBD ratings.
Soaring commodity prices have been a tailwind for Star Bulk. The company — involved in dry bulk shipping with a fleet of 128 vessels worldwide — has seen profit growth accelerate. Analysts expect earnings in 2021 to be $6.23 per share, an astonishing rise from just 17 cents in 2020. This has allowed Star Bulk to pay out impressive dividends, with a current yield of 13.5%.
This earnings growth is expected to continue when Star Bulk reports its fourth-quarter results on Feb. 16. Estimated EPS is $2.32 per share with revenue of $385.7 million. In terms of the outlook, analysts' 2022 EPS consensus estimate is $6.25.
Star Bulk is forming a base with a handle buy point at 24.48. Star Bulk is displaying relative strength, with an RS Rating of 98 and IBD's top Composite Rating of 99.
Global Stocks: Shipping Rates Soar
Global Ship Lease is a London-based firm involved in the leasing of container ships. The company owns 65 ships, the majority of which are lent out on long fixed-term contracts.
Global Ship Lease has been growing. Analysts estimate full-year 2021 EPS of $3.64, up from $2.69 in 2020. This growth is expected to skyrocket, with EPS projected to double to $7.82 in 2022.
Favorable demand for leases, which are expected to persist, is causing the growth. This has resulted in lease renewals at impressive rates. The most recent was the Kumasi, which was just leased out at an over-300% markup on its previous lease rate. This demand has also allowed Global Ship Lease to refinance its debt at more favorable rates.
Global Ship Lease boasts IBD's top Composite Rating of 99 and has a Relative Strength Rating of 98. The stock is forming a cup base with a 26.61 buy point, per MarketSmith.
Global Stock BHP Hovers Around Buy Zone
Melbourne, Australia-based commodity giant BHP Group is trading near its 63.39 buy point after forming a cup base. Higher commodity prices have led to impressive growth, with EPS almost doubling from $3.58 in 2020 to $6.74 last year.
With higher commodity prices expected in the near term, BHP Group could provide a good inflation hedge, while also providing a dividend yield of 9.4%.
