Top Shipping Stocks: Key Takeaways
- Big picture to hot stocks — your guide to shipping stocks is here.
- See my thorough shipping sector watchlist, including high-priced steady gainers to low-priced spikers.
- What to know about the big hits to this industry and its rapid comeback.
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This is an interesting year for shipping, which can mean great volatility and momentum for shipping stocks. Supply chain issues are only part of the big picture. Build your tailored watchlist now to prepare. It helps to break your lists down by sector so you don’t get overwhelmed.
Here are the top shipping stocks I’m looking at (details below):
- Air Transport Services Group, Inc. (NASDAQ: ATSG … see my analysis here)
- Daseke, Inc. (NASDAQ: DSKE … see my analysis here)
- J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT … see my analysis here)
- Landstar System, Inc. (NASDAQ: LSTR … see my analysis here)
- Matson, Inc. (NYSE: MATX … see my analysis here)
- Old Dominion Freight Line, Inc. (NASDAQ: ODFL … see my analysis here)
- XPO Logistics, Inc. (NYSE: XPO … see my analysis here)
- ZIM Integrated Shipping Services Ltd. (NYSE: ZIM … see my analysis here)
- Radiant Logistics, Inc. (AMEX: RLGT … see my analysis here)
- Sino-Global Shipping America, Ltd. (NASDAQ: SINO … see my analysis here)
Table of Contents
- 1 Shipping Stocks Overview
- 2 Shipping Stocks to Watch
- 2.1 Shipping Stocks #1: Air Transport Services Group, Inc. (NASDAQ: ATSG)
- 2.2 Shipping Stocks #2: Daseke, Inc. (NASDAQ: DSKE)
- 2.3 Shipping Stocks #3: J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT)
- 2.4 Shipping Stocks #3: Landstar System, Inc. (NASDAQ: LSTR)
- 2.5 Shipping Stocks #4: Matson, Inc. (NYSE: MATX)
- 2.6 Shipping Stocks #5: Old Dominion Freight Line, Inc. (NASDAQ: ODFL)
- 2.7 Shipping Stocks #6: XPO Logistics, Inc. (NYSE: XPO)
- 2.8 Shipping Stocks #7: ZIM Integrated Shipping Services Ltd. (NYSE: ZIM)
- 3 Shipping Penny Stocks
- 4 The Bottom Line on Shipping Stocks
Shipping Stocks Overview
What should you know about shipping stocks before you look at individual tickers? Let’s look at the sector more closely.
Background Shipping Stocks
Shipping means transporting cargo by land, air, or sea. It’s HUGE.
This sector handles the movement of goods around the world, from raw materials (lumber and coal) to finished products and machinery.
As globalism increases, shipping companies have more opportunities to make money. But more reliance on shipping means that global events impact the industry more…
Trends in Shipping Stocks
Lockdowns were tough for shipping companies. There was less demand around the world and business slumped a bit.
In March 2021, the industry faced another setback. That’s when the enormous cargo ship Ever Given blocked the Suez Canal for six days.
Global shipping companies use the Suez Canal regularly to transport goods. The few days it was inoperable had a big impact on the industry as a whole.
It’s a good lesson in how big global events can affect so many things, including market sectors and stocks.
Now shipping stocks are ready for a boom as economies open up. More business means more shipping.
That can mean more trading opportunities — if you know what you’re doing. Be ready for volatility. Check out my no-cost “Volatility Survival Guide” to learn how to trade volatile stocks.
Shipping Stocks to Watch
I’m watching these stocks, but I might not trade any of them. That way I’m prepared when a stock fits my pattern.
The stocks on this list are a little higher priced. I prefer penny stocks, especially OTCs. I’ve been trading for 20+ years and these patterns still work. And some of my students apply my patterns to higher-priced listed stocks. That’s the power of education.
Let’s dive right in.
Shipping Stocks #1: Air Transport Services Group, Inc. (NASDAQ: ATSG)
This company leases planes to businesses for cargo transport. It also provides services like aircraft maintenance and ground support.
Airlines famously took a hard hit during lockdowns. But restrictions have started to lift and economies are trying to come back. We could see increased business in air traffic.
Also, the Ohio Aviation Association recognized ATSG’s subsidiary as the “Airport Business of the Year.”
That sounds like the beginning of a fluff press release to me. Remember to always look for a catalyst. Find a reason for the stock’s move.
It put in a base in the low $20s. I’m watching for some consolidation under the breakout level before getting in. Remember, safe entries and exits.
Shipping Stocks #2: Daseke, Inc. (NASDAQ: DSKE)
This company provides transportation for cargo on trucks. It’s a lot like the previous company but moves products on the ground.
It spiked a bit back in August 2020. Since then, it’s held gains well. It even bounced off the $5 level a few times. Take a look at a chart on a longer time frame and you’ll see what I mean. I zoomed in below to show you something specific…
I like this chart — it looks like it could break out again. At the beginning of August, it popped up over $9.
I’m watching for it to hold that price level. Hopefully, it consolidates above $9, and there’s an opportunity to get in on a dip.
The chart may look good, but don’t get sucked in. Confirm the move first.
Shipping Stocks #3: J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT)
Here’s another trucking company that hedges its business by using railroads. It also consistently ranks amongst the top North American shipping companies for revenue.
Stock prices vary with the perceived value of businesses. The more money the company makes, the higher the stock price. So it’s a good sign that this company has positive revenues.
A lot of the penny stocks I trade have little to no revenues. That’s a big difference between these listed stocks and the sketchy niche.
Ready to dive into penny stocks? Check out my “PennyStocking Framework Part Deux” DVD. It’s a great way to dig into the patterns and basics of this niche.
As for JBHT, we see some signs of running back in October 2020. And now it’s right near the highs after putting in a bottom at $160.
There’s some pretty good consolidation happening at the breakout level. My guess is we’ll see it choose a direction pretty soon. If you’re looking to go long, wait for a dip to support levels. Don’t get greedy.
Shipping Stocks #3: Landstar System, Inc. (NASDAQ: LSTR)
This company generates most of its revenue through trucking operations.
At the beginning of 2021, it ran a bit after breaking out over the $140 level. So we know it can move under the right circumstances.
Last July the stock bottomed out at $150 and is now making its way back toward the highs. It looks like $180 is the resistance.
Look for it to bounce around between those levels and get in on a safe dip. Make sure you’re only taking positions when a catalyst moves this stock up. Otherwise, you’re just buying at random.
Shipping Stocks #4: Matson, Inc. (NYSE: MATX)
This chart is exciting. Every time the stock moves up, it holds gains well.
Look at the move from $40 to $50. Then it broke through again and held the $55 level.
The most damning evidence to me is the period from May–July. For three months it put in a big consolidation above $60. Now it’s working back toward the highs.
A lot of these charts look the same, and I have similar reasons for watching them. Pick up on that. I’m looking to fit stocks to certain patterns. The more alike they look, the better. Especially if I’m looking for the same pattern.
Check out my “Spikeability” DVD for more information on catching runners before they make a move.
Shipping Stocks #5: Old Dominion Freight Line, Inc. (NASDAQ: ODFL)
This is a trucking company that transports goods around the U.S. Its chart doesn’t have much of a history of spiking. But I have some other reasons for keeping it on the watchlist.
The chart shows a strong history of growth in the last two years, for good reason, too. It’s regarded as a highly profitable company compared to others in the industry.
I don’t usually hold positions for long, but if you’re looking for a swing trade contender, this might be one to further research.
But remember, there are no guarantees in the stock market. Even companies with solid financials can take a dive if the economy gets hit hard. Stay safe.
Shipping Stocks #6: XPO Logistics, Inc. (NYSE: XPO)
Here’s another trucking company that reminds me a lot of the MATX chart above.
See how it holds its gains every time it moves up? That’s a good sign.
Shipping Stocks #7: ZIM Integrated Shipping Services Ltd. (NYSE: ZIM)
This company transports a variety of goods including dangerous and refrigerated cargo.
Often, catalysts spike stocks higher with scary news. Transporting dangerous and refrigerated goods could provide a great catalyst for stock moves. Especially now that vaccines are transported at cold temperatures.
This chart looks like it’s grinding higher. Don’t chase it.
I’ll keep it on my list in case it pulls back and consolidates above the breakout level.
Shipping Penny Stocks
All the stocks up to this point have been a little pricey. Again, I prefer penny stocks.
I think they’re great for traders with small accounts. You can start small and build your knowledge and brokerage accounts together. And you can learn rules to keep you safe along the way.
My top trading rules are in “The Complete Penny Stock Course” by my student Jamil. He wrote it after learning from me. It can help traders build a solid trading foundation.
On that note, let’s look at some of the lower-priced shipping stocks I’m watching…
Radiant Logistics, Inc. (AMEX: RLGT)
This company provides a variety of shipping solutions across land, air, and sea.
I know it’s above $5, but it’s still a pretty low-priced stock. Nothing’s perfect in this industry.
I like this chart because we can tell it likes to run. It broke out over $6.50 back in February. Since then it has tried to hold gains after pushing past $7.50 but fell back down.
I wouldn’t try to trade this until it pushes back up above the $7 level. That’s a big resistance line because it’s a whole number. And we can see the stock touched it last July.
I’d wait for some consolidation below $7.50. We can already see some just above $6, but that’s a bit far from the breakout level. I want it to prove it has legs to get back above $7.
Sino-Global Shipping America, Ltd. (NASDAQ: SINO)
This is a great chart. The volatility is truly inspiring.
It ran from $4 to $10 back in January and early February this year. Now it’s all the way back down to $3. See what I mean about staying safe?
Never trust these penny stock spikers. More often than not, they’ll fail, like this one did. The smartest plan of action is to get in safely and take the meat of the move.
You don’t need to catch the exact bottom or top. Just get out with a safe single or small loss.
This company deals with shipping in countries like China, Australia, and the U.S. With that large of a territory, there are more possibilities for spooky press releases. I’ll watch for an interesting catalyst and increased volume.
The Bottom Line on Shipping Stocks
Picking stocks for a watchlist can be tough for newbies. Usually, they don’t know what to look for and it can be overwhelming.
Try dividing stocks into groups that will make your sample size smaller. You now know which shipping stocks I’m watching … Now you can do the same for other sectors.
And if you’re ready to commit to learning more, apply for my Trading Challenge today. Just know that I don’t accept everyone. You have to prove you’re ready to put in the work.
Remember to keep your expectations realistic. Don’t promise yourself profits and make sure to always remember rule #1 and cut losses quickly.
Which shipping stocks are on your watchlist? Let me know what you think about this sector. Leave a comment!
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