In the world of investing, the trend is your friend. However, for ZIM Integrated Shipping Services (NYSE: ZIM), the current technicals suggest a mixed picture. As of May 20, 2024, the stock is trading below its 52-week high of $19.8, with a 50-day moving average of $12.04, indicating a potential downtrend. On the other hand, the stock has shown resilience, maintaining a price above its 52-week low of $6.39. ZIM's beta of 1.537 implies higher volatility compared to the market, which could be a cause for concern for risk-averse investors. The company has also reported a net interest income loss of $287.7M and an income tax expense loss of $127.6M, further clouding its financial health. However, with a Wall Street target price of $10.28 and the highest estimated target price by analysts at $12.9, there is potential for upside. The analyst overall consensus is a 'Hold', indicating a neutral outlook. The short ratio of 5.96 and short percent of 22.55% suggest that a significant portion of investors are betting against the stock, adding to the uncertainty. Therefore, while ZIM Integrated Shipping Services presents some promising aspects, it also carries considerable risks. Many millennials are steering clear of the marine transportation sector, making it worthwhile to delve deeper into ZIM Integrated Shipping and its current market trends. As anticipated, ZIM Integrated is beginning to showcase its true potential as investor confidence in its future prospects grows. The company's stock price movements reflect broader market trends. Positive forward indicators suggest a short-term price swing for ZIM investors. ZIM Integrated Shipping is set to announce its earnings today, with the next financial report due on May 27, 2024.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of ZIM Integrated Shipping. In general, sophisticated investors focus on analyzing ZIM Integrated stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build ZIM Integrated's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
ZIM Integrated's intrinsic value. In addition to deriving basic predictive indicators for ZIM Integrated, many experienced traders also check how macroeconomic factors affect ZIM Integrated price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
How does ZIM Stands against Peers?
Analyzing ZIM Integrated competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to ZIM Integrated across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
ZIM Integrated Competition DetailsZIM Integrated Gross Profit
ZIM Integrated Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ZIM Integrated previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ZIM Integrated Gross Profit growth over the last 10 years. Please check ZIM Integrated's
gross profit and other
fundamental indicators for more details.
Closer look at ZIM Integrated Standard Deviation
ZIM Integrated Shipping has current Standard Deviation of 4.61. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility.
A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation | = | SQRT(V) |
| = | 4.61 |
Let's now compare ZIM Integrated Standard Deviation to its closest peers:
| ZIM | 4.611077828664604 |
| GOGL | 1.97 |
| GNK | 1.69 |
| EGLE | 1.8 |
| GSL | 1.84 |
As the old saying goes, "Don't put all your eggs in one basket," and this is certainly true when considering ZIM Integrated Shipping Services (NYSE: ZIM). Despite a high 52-week range of $19.8 and a robust cash flow from operations of $1.02B, the company is showing signs of financial distress with a probability of bankruptcy at 65.93%. The company's net income is a significant loss of $2.7B, and the operating income is also in the red at $458.5M. The stock's Beta of 1.54 indicates a higher volatility compared to the market, which combined with the high downside deviation of 4.53, suggests potential risk for investors. However, with a current ratio of 1.64X, ZIM demonstrates a good short-term financial strength. Thus, investors need to weigh the potential risks against the rewards before investing in ZIM Integrated Shipping Services..
ZIM Integrated implied volatility may change after the roll up
ZIM Integrated Shipping Services Ltd. (ZIM) recently exhibited a total risk alpha of 0.53, suggesting a potential for higher returns and effective risk management. However, investors should remain vigilant as the implied volatility of ZIM stock may alter following the roll-up, potentially causing fluctuating stock prices and increased market uncertainty. Therefore, investors should closely monitor the stock's performance and adjust their investment decisions accordingly. ZIM Integrated Shipping displays above-average downside volatility for the selected time frame. Understanding market volatility trends can help investors time the market effectively. Utilizing volatility indicators can help traders measure ZIM Integrated's stock risk against market volatility during both bullish and bearish trends. The heightened volatility of bear markets can directly affect ZIM Integrated's stock price, causing investor stress as share values drop, often prompting portfolio rebalancing through the purchase of diverse financial instruments.
Our Conclusion on ZIM Integrated
Although some firms within the marine shipping industry are still a little expensive, even after the recent corrections, ZIM Integrated may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither purchase new shares of ZIM nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ZIM Integrated.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of ZIM Integrated Shipping. Please refer to our
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