Earnings Anticipation Grips Dry Bulk Stocks Amid Euro-Zone Debt Worries (GNK, DRYS, NM, SB, EXM, DSX, EGLE)
by Owen Vater | April 28th
Filed in: Stock Sector News
The dry bulk shipping sector is gearing up for earnings season, and Genco Shipping & Trading (GNK) led the most recent rally.
Genco shares were up by as much as 4.5% today as investors turn their eye to analyst optimism and the Baltic Dry Index (BDI) — an industry pricing benchmark. The BDI is on its first notable breakout since mid-March, and while it remains well off highs reached in late 2009, the recent spike gives dry bulk bulls something to chew on ahead of the sector’s earnings season.
As a whole, the Dry Bulk Shipping Stocks Index has outperformed the S&P 500 by 7% over the past month as signs of continued economic recovery trickle in. While select stocks like Navios Maritime (NM) and Safe Bulkers (SB) have more than doubled since hitting 52-week lows, the industry has been slow to recover from the global economic downturn.
BB&T Capital Markets analyst Kevin Sterling told Reuters, “Spot rates were strong during the first quarter, so it is going to be a spot-rate-driven scenario.” The report notes that Excel Maritime Carriers (EXM) and Genco could be beneficiaries of their exposure to the spot market.
Genco and Eagle Bulk Shipping (EGLE) will report earnings on May 3, followed by DryShips on May 4, and Diana Shipping (DSX) will report later in the month, all according to Yahoo Finance data.
Investors can track the Dry Bulk Shipping Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
Tags: DRYS, DSX, EGLE, EXM, GNK, NM, SB
source:tickerspy
