As the world tries to unsnarl tangled supply chains, shipping companies are playing a key role. Highly rated Global Ship Lease has been posting amazing growth numbers amid that shift. Last quarter, for example, it reported a 260% year-over-year increase in earnings per share on 111% higher revenue. It's no surprise that Global Ship stock's Relative Strength Rating on Tuesday jumped to 88, up from 78 the day before.
The 88 RS Rating shows that Global Ship stock has performed in the top 12% of all stocks in terms of stock price performance. The market's biggest winners often have an RS Rating north of 80 as they launch their biggest runs.
Small cap Global Ship stock has formed a series of at least three cup patterns in a little more than a year, breaking out to rise from each one. That's good news and bad news. The good news is that the pattern has been highly successful for the shipping company. The bad news is if it forms a fourth one without resetting, that would be late in the cycle. Early, first and second stage, bases tend to work better than later stage ones, although both can be successful.
Global Ship Stock Up On New Charters
George Youroukos, executive chairman of Global Ship Lease, said in May 9 first quarter earnings release, "I am pleased to report that Global Ship Lease has delivered another quarter of earnings growth, even amid significant geopolitical activity." Youroukos added that the gains came "as additional highly attractive charters that we secured over the course of the last year have increasingly come into effect."
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Earnings last quarter rose to $1.91 per share, up from 56 cents the same quarter last year. The prior three quarters its EPS rose 200%, 110% and 202%. Revenue in its most recent quarter rose to $153.6 million, up from $73 million the prior year. Sales growth gains of 96% and 119% preceded the 111% rise last quarter.
Global Ship stock is a watchlist candidate, although with the market still in correction status now is not an ideal time to jump in. See if the stock manages to offer a clear an appropriate buy point. Tuesday afternoon Global Ship Lease traded at 22.73, up about 1% and on track for a third day in a row of higher closes.
Peers In Shipping Group
The company earns the No. 6 rank among its peers in the Transportation-Ship industry group. EuroDry and Eagle Bulk Shipping are also among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
This exclusive rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
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