These Shipping Stocks Could Be Headed Higher

Hassan Maishera - November 21, 2019

The logistics sector has had a mixed year, with some shipping stocks recording gains while others traded in the red. The ongoing trade war, tariffs, slowing global economy, and the changing trend in the e-commerce sector has affected the shipping sector.

However, the global economy is stabilizing and business could start picking up soon for the logistic companies. Long term, the outlook is extremely favorable for shipping stocks. E-commerce shipping volume is expected to grow by 100% over the next six years.

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Shipping Stocks Set to Move Higher

Despite the poor performance of the logistics company in 2019, some stocks in the sector performed well. Here are the shipping stocks set to move higher soon.

XPO Logistics Inc. (XPO)

The Connecticut-based logistics company is one of the ten largest providers of transportation and logistics services in the world. XPO Logistics is having a fantastic 2019 so far, up by over 40% year-to-date.

This company made several growth investments this year. XPO Logistics expands the use of intelligent robotics in the UK as it prepares for the holiday season. The company also expanded operations in Spain, opening a multimodal transport hub in Vigo, Galicia.

The changes in operations could see them deliver products faster and cover more areas across Europe.

Scorpio Tankers Inc. (STNG)

Scorpio Tankers is one of the leading shipping stocks in 2019. The stock is up by 73% since the start of 2019, outperforming the industry average. The Monaco-based company primarily handles large vessels.

On Wednesday, November 20, 2019, the company announced that its President Robert Bugbee acquired call options on 200,000 common shares. The strike price for the contract is $32 per share and is set to expire by January 2020.

Although there is no apparent catalyst, Scorpio Tankers’ stock is up by 4% in 24 hours and could be set to move higher soon.

United Parcel Service, Inc. (UPS)

It has been a good year for UPS so far as the stock is up 22% year-to-date. The American shipping giant is an industry leader, and it could close out the year with a strong performance.

UPS shipping stocks

UPS has been a bit of a laggard this year, but it could be headed for a rebound soon. Ecommerce sales are expected to be particularly strong for this holiday season.

Experts expect UPS to bounce back as we approach the holiday season. The company plans to hire 100,000-holiday workers to help handle the increased package volume.

C.H. Robinson Worldwide Inc. (CHRW)

C.H. Robinson is a multinational provider of multimodal transportation services and third-party logistics. Robinson’s stock has been in a bearish trend since the start of the year. However, traders see signs of an impending reversal.

CHR Shipping Stock

C.H. Robinson provides a variety of shipping and logistics services for businesses of all sizes.

Earlier this week, C.H Robinson launched Freightquote targeted at small and medium-sized companies. Freightquote is an online portal offering multimodal transportation solutions to businesses. It allows small and medium-sized companies to easily source reliable capacity at a fair cost. The technology will help the company attract smaller and medium-sized companies.

FedEx Corporation (FDX)

FedEx usually leads this category. However, this shipping stock is having a dismal year. The firm was up against several headwinds in 2019, and shares are down 7% year-to-date. Because of its large international presence, the global slowdown hit FedEx particularly hard.

Growing eCommerce sales are starting to wake up the shipping sector. This could be a strong catalyst to take FedEx’s stock out of its current bear trend and surge higher.

More Shipping Stocks That Could Move Higher

The shipping and logistics industry has underperformed this year due to several economic factors. Stay tuned to the Dork to keep track of breakout penny stocks. Follow Stock Dork on Twitter and Facebook to keep up with all the latest stock market news. Also, don’t forget to sign up for mobile Dork Alerts to get all the hottest stock picks, insights, and analysis delivered to your cell.

Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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