Bear of the Day: DryShips (DRYS) - Bear of the Day

By
A A A

Are you one of the investors still in DryShips Inc. ( DRYS )? This Zacks #5 (Strong Sell) still hasn't recovered from the Great Recession.

DryShips owns 42 drybulk carriers and tankers and ships worldwide. It also owns and operate 11 ultra deepwater drilling units.

Drybulk shipping was hot prior to the recession but the industry overbuilt and that pushed rates down. It is one of the few industries that has yet to recover.


Full Year Estimates Sliding

It's been a tough couple of years for DryShips. The last time the company was profitable was in 2011 when it made $0.43.

Last year, it lost $0.28 per share.

While the analysts started out more hopeful for 2014, that hope has begun to fade.

The 2014 Zacks Consensus Estimate has sunk to just $0.04 from $0.20 ninety days ago. The story is the same for 2015 with the Zacks Consensus Estimate sliding to $0.27 from $0.45.

DryShips is expected to report earnings on Aug 5 after the market closes. It doesn't have a track record of beating the estimate, however. It's last beat was in 2011.

DryShips Has Missed the Rally

DryShips has long been a favorite of investors but shares have moved in a narrow trading range over the last 5 years while the S&P 500 has soared.

You would have been far better off just buying the S&P 500.

And with earnings estimates sliding again, it doesn't look like there's a turnaround in the near future.

If you're looking for a shipper that is growing its earnings, consider Kirby Corporation ( KEX ). It is a Zacks Rank #1 (Strong Buy) and is expected to grow its earnings by the double digits both this year and next.

Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential .

Learn More>>

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec .


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KIRBY CORP (KEX): Free Stock Analysis Report

DRYSHIPS INC (DRYS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks

Referenced Stocks: KEX , DRYS

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

100,376,898
  • $17.62 ▲ 0.51%
83,231,837
  • $25.62 ▲ 1.91%
75,739,329
  • $111.78 ▼ 0.77%
65,297,937
  • $36.37 ▼ 1.76%
59,053,093
  • $47.66 ▲ 0.29%
53,482,350
  • $2.59 ▼ 0.38%
51,504,284
  • $7.34 ▲ 2.37%
51,434,656
  • $8.14 ▲ 6.96%
As of 12/19/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com