Yahoo Finance Should You Think About Buying ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) Now?
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), might not be a large cap stock, but it saw a significant share price rise of 91% in the past couple of months on the NYSE. While good news for shareholders, the company has traded much higher in the past year. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine ZIM Integrated Shipping Services’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for ZIM Integrated Shipping Services
What's The Opportunity In ZIM Integrated Shipping Services?
Good news, investors! ZIM Integrated Shipping Services is still a bargain right now. According to our valuation, the intrinsic value for the stock is $24.36, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that ZIM Integrated Shipping Services’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of ZIM Integrated Shipping Services look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 89% over the next couple of years, the future seems bright for ZIM Integrated Shipping Services. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.
What This Means For You
Are you a shareholder? Since ZIM is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on ZIM for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy ZIM. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.
If you want to dive deeper into ZIM Integrated Shipping Services, you'd also look into what risks it is currently facing. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of ZIM Integrated Shipping Services.
If you are no longer interested in ZIM Integrated Shipping Services, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
