Shipping giant Matson has been putting up some spectacular numbers lately, including a 314% jump in earning per share last quarter. On Wednesday Matson stock's IBD SmartSelect Composite Rating climbed to a superb 96 of 99, up from 94 the day before.
Shipping companies enjoyed a nice run after the pandemic crash in 2020. People and companies needed new types of goods shipped to them for work and play at home. Highly ranked Matson was among them. However, the group took a hit early this year, including Matson, amid the global spread of a new Covid variant and lockdowns in China to quell that variant. Putin's war in Ukraine, which has curtailed component shipments, and rising global inflation also hit shippers. The question now: Can Matson's surging sales and profits also lift its stock price?
Matson Stock In Position To Rise If Market Cooperates
The new rating shows Matson stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they begin to launch a significant move, putting Matson squarely in the group of the best stocks to buy and watch. However, although it's one to add to a watchlist, with the market retreating now is not a good time to buy.
In Q1, Matson's EPS grew 314% to $8.23 on a 64% year-over-year surge in revenue to $1.17 billion. The prior three quarters the shipper's EPS rose 388%, 301% and 379%. During that time its sales grew 67%, 66% and 81%.
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Additionally, the Honolulu-based company boasts a best-possible 99 EPS Rating, reflecting its strong recent quarterly and annual earnings growth. The Accumulation/Distribution Rating of C- for Matson stock shows a roughly equal amount of buying and selling by institutional investors over the last 13 weeks.
Matson stock surged 62% from a December 20 intraday low 77.30 to an all-time high 125.34 on March 30 before it finally succumbed to downward pressure on the market this year. Since then it has fallen off and traded around 79 Wednesday afternoon, down for the day. See if it can form a fresh pattern such as a cup-with-handle base and break out in strong volume.
Matson stock earns the No. 11 rank among its peers in the Transportation-Ship industry group. Capital Products, Eagle Bulk Shipping and Euroseas are among the top 5 highly rated stocks within the group.
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