The latest AAII Bull/Bear survey showed the fewest number of bulls since 1992. Given the current macro picture with spiraling inflation, higher interest rates, war in Eastern Europe and rising crime rates in big cities, there really should be no surprise over the horrible survey results. While contrarians would point to the survey numbers as a positive, it is important to remember there were three notable periods that saw significantly bearish readings in the past, in 2008, 2011 and 2015, that preceded further declines in equities.
A new research report from BTIG Research cites the AAII survey and includes a group of stocks that look very promising during these difficult times. With almost all the major GIC sectors seemingly poised to trade lower in the near term, this may be an incredible group of companies to look at now.
The BTIG analysts feel that four top shipping stocks that have acted extremely well in the face of some turbulent trading, and that in some cases pay double-digit dividends, may be among the best bets for investors for the second quarter and the rest of 2022. While the following stocks are rated Buy at the firm, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Eagle Bulk Shipping
This industry leader broke out in a big way and has been consolidating in recent trading. Eagle Bulk Shipping Inc. (NASDAQ: EGLE) engages in the ocean transportation of dry bulk cargoes worldwide.
The company owns, charters and operates dry bulk vessels that transport a range of cargoes, including iron ore, coal, grains, fertilizers, steel products, petcoke, cement and forest products. It serves miners, producers, traders and end users. As of December 31, 2021, the company owned and operated a fleet of 53 vessels.
Eagle focuses exclusively on the versatile midsize dry bulk vessel segment and owns one of the largest fleets of Supramax/Ultramax vessels in the world. The company performs all management services in-house (including strategic, commercial, operational, technical and administrative) and employs an active management approach to fleet trading with the objective of optimizing revenue performance and maximizing earnings on a risk-managed basis.
Shareholders receive a huge 12.93% dividend. BTIG has a $75 price target for Eagle Bulk Shipping stock. The consensus target is $73.30, and the stock closed over 4% higher on Monday at $70.85.
Genco Shipping & Trading
This is another top stock in the group that broke out late last month and looks poised to trade higher. Genco Shipping & Trading Ltd. (NYSE: GNK) engages in the ocean transportation of dry bulk cargoes worldwide. The company owns and operates dry bulk carrier vessels to transport iron ore, coal, grains, steel products and other dry bulk cargoes. It charters its vessels primarily to trading houses, including commodities traders, producers and government-owned entities.
Genco provides a full-service logistics solution to customers utilizing an in-house commercial operating platform, as it transports key cargoes such as iron ore, grain, steel products, bauxite, cement, nickel ore among other commodities along worldwide shipping routes.
The wholly owned, high-quality, modern fleet of dry cargo vessels consists of the larger Capesize (major bulk) and the medium-sized Ultramax and Supramax vessels (minor bulk), enabling it to carry a wide range of cargoes. It makes capital expenditures from time to time in connection with vessel acquisitions. As of April 12, 2022, the company’s fleet consisted of 17 Capesize, 15 Ultramax and 12 Supramax vessels with an aggregate capacity of approximately 4,635,000 deadweight tonnage and an average age of 10.1 years.
Investors in Genco Shipping & Trading stock receive a 10.88% dividend. The BTIG target price is $28, while the consensus target is $27.61. The shares closed Monday’s trading at $25.56, up close to 4% on the day.
Golden Ocean
After slumping badly last year, the shares traded off a double bottom bounce and look ready to move even higher. Golden Ocean Group Ltd. (NASDAQ: GOGL) owns and operates a fleet of dry bulk vessels, comprising Newcastlemax, Capesize, Panamax and Ultramax vessels, in the spot and time charter markets worldwide. The company transports bulk commodities, such as ores, coal, grains and fertilizers. As of March 23, 2022, it owned a fleet of 81 dry bulk vessels.
With an improving bottom line and shipping prices continuing to skyrocket due to the war in Ukraine, this looks like a very solid idea for aggressive investors also searching for big dividend payouts.
Investors receive an 18.33% dividend. The $14 BTIG Research price objective is in line with the $13.96 close on Monday, though shares did reach a 52-week high of $14.27 earlier in the day.
SFL
This is one of the top oil shipping stocks, and oil prices could remain high for years. SFL Corp. Ltd. (NYSE: SFL) is a maritime and offshore asset owning and chartering company, engaged in the ownership, operation and chartering of vessels and offshore related assets on medium and long-term charters.
The company is also involved in the charter, purchase and sale of assets. In addition, it operates in various sectors of the maritime, shipping and offshore industries, including oil, chemical, oil product, container and car transportation, as well as dry bulk shipments and drilling rigs.
As of December 31, 2021, the company owned six crude oil tankers, 15 dry bulk carriers, 35 container vessels, two car carriers, one jack-up drilling rig, one ultra-deepwater drilling unit, two chemical tankers and four oil product tankers. It primarily operates in Bermuda, Cyprus, Liberia, Norway, Singapore, the United Kingdom and the Marshall Islands.
Shareholders receive a 7.48% dividend. BTIG Research has set an $11 price objective, and the consensus target is $11.50. SFL stock closed trading Monday at $10.70.
Though some of these top stocks are trading close to the analyst targets, all of them on a technical basis look like they could break out to fresh highs. With other sectors looking very weak and vulnerable to selling pressure, these four could be great near-term ideas for investors looking for alpha.
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