ZIM Integrated Shipping Services (ZIM) shares rallied 8.6% in the last trading session to close at $28.55. 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 0.9% loss over the past four weeks.
Shares of the shipping company soared after reports of a another takeover bid emerged. According to a report from Ynet, an Israeli investor group led by businessman Haim Sakal submitted an offer Tuesday to acquire full ownership of ZIM for $4.5 billion in cash, challenging an existing merger agreement with German shipping giant Hapag-Lloyd and Israel’s FIMI fund.
This container shipping company is expected to post quarterly loss of $0.22 per share in its upcoming report, which represents a year-over-year change of -109%. Revenues are expected to be $1.59 billion, down 20.6% 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 113.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates 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, Knot Offshore (KNOP), finished the last trading session 2.8% higher at $11.5. KNOP has returned 10.4% over the past month.
For Knot Offshore, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of -22.7% from what the company reported a year ago. Knot Offshore currently has a Zacks Rank of #4 (Sell).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
