Home > Best shipping stocks to buy amid freight rates edging up again

Best shipping stocks to buy amid freight rates edging up again

The shipping industry reported record profits in 2021 on the back of the global economy reopening after the COVID-19 shutdown. As freight rates have started to edge up again, what are the best US shipping stocks to buy? 

The COVID-19 pandemic triggered unprecedented health and economic crisis worldwide. As a result, economies were forced into lockdown as the world needed to rethink supply chains.

Globalization as we know it changed completely. But as economies started to open up again, inflation began to creep up. Supply bottlenecks everywhere led to the prices of goods and services rising everywhere. As it became more expensive to ship goods from one part of the world to another, one industry benefited the most – the shipping industry.

Freight rates were through the roof in 2020 and 2021. And, they have started to edge up again in January 2022.

Moreover, the shipping industry reported $150 billion in profits in 2021, for the first time ever. Naturally, some of those profits will go to shareholders.

So what are the best US shipping stocks to buy to make the most of the tailwinds in the industry? Here are three names to consider: Matson, Kirby, and Eagle Bulk Shipping.

Matson

Matson is based in Honolulu, Hawaii, and was founded in 1882. Its stock price is up +34.47% in the past twelve months, and the company pays a quarterly dividend, with a payout ratio of 6.98%.

The company operates with a gross profit margin of 30.22%, higher than the sector median, and YoY revenues grew by more than 50%. Matson’s market capitalization has reached $3.79 billion at the current stock market price.

Kirby Corporation

Kirby Corporation operates domestic tank barges and it is based in Houston, Texas. The stock price is up 6.09% in YTD, and at the current stock market price, the company has an enterprise value of $5.09 billion.

Eagle Bulk Shipping

Eagle Bulk Shipping is an American company transporting dry bulk cargo worldwide. Founded in  2005, it operates about 50 vessels, and it is based in Stamford, Connecticut.

The stock price is up +84.86% in the last twelve months, and the company pays a quarterly dividend. Moreover, revenue growth YoY exceeds the sector median by more than 550%.

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