Shipping Stocks for Supply Chain Woes

Offset the burden of higher consumer prices by looking up the supply chain to invest.

The consumer price index rose its fastest since 1981, with an 8.5% jump in March. Supply chain issues and labor shortages continue to push prices higher.

  • The producer price index has risen 11.2% over the past year with the costs of energy, food and metals climbing.
  • Transportation and warehousing prices have also increased by an annual 5.5%.

Star Bulk Carriers (SBLK) provides ocean transportation of dry bulk cargoes worldwide. Its fleet of 128 vessels can ship about 14.1 million deadweight tons of products.

By the numbers: SBLK delivered an earnings beat in the last quarter.

  • It reported $2.96 earnings per share for the quarter, beating the consensus estimate of $2.52 by 17.4%.
  • The company had a net margin of 47.67% and a return on equity of 37.79%.
  • Star Bulk Carriers reported $499.86 million in revenue, exceeding the expected revenue by 13.4%.

Wall Street analysts are forecasting a +18.57% increase over the next twelve months and SBLK was recently upgraded to Buy.

Our thought bubble: To offset the burden on you as the consumer, consider investing in the supply chain itself. Add a defined outcome for SBLK to your portfolio.

Source: Barrons


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