1 Shipping Stock to Buy & 1 To Sell After Recent Tariff Changes? Shipping stocks are making big moves following recent tariff changes. Here’s one to potentially buy — and one to consider selling.
By Lyndon Seitz
This story originally appeared on WallStreetZen
It’s certainly been an interesting week, with plenty to talk about, but perhaps the biggest news is the (currently temporary) downturn of tariffs on Chinese goods to 30%, and some resurgence of hope in the market.
And while the news doesn’t necessarily eliminate uncertainty, it does mean that there could be a surge in imports while the tariffs are low as they are (this could be temporary, after all). This could lead to short-term boosts to the market, especially for certain companies.
However, these boosts may not last. Investors may want to focus on long-term stability and options instead of focusing on short-term gains or losses that come from this news. To that end, we looked at Zen Ratings for stocks that are still rated highly despite the turbulence. And what better industries to look at than retail and shipping?
Therefore, here is one stock you should take a look at and one you most certainly shouldn’t:
Add To Your Watchlist: Pitney Bowes (NYSE: PBI)
This mailing equipment and software company has just become a strong dividend stock, but there are also reasons to believe there is growth to be found, given its Component Grade for Sentiment of A and Component Grades of B for Value, Safety, and Momentum. And with shipping likely to pick up in at least the short term, PBI will see some increased demand.
While the share price has struggled over the past three months, given the tariffs and economic concerns, don’t let that distract you from the fact that it has had an excellent last 12 months (see below). Combine that with the fact that it recently surpassed estimates, and it quickly becomes a stock to watch.
Consider Selling: SFL Corp (NYSE: SFL)
When imports happen, shipping happens. And maritime and shipping company (among other things) SFL is likely to be affected by the tariffs one way or another. Regardless, our Zen Rating System says SFL is not a stock to look into right now (it has an F rating — here’s why that matters).
Why? It scores poorly when it comes to Growth, Momentum, Sentiment, and Safety, getting D or F Component Grades for all.
The scores it among the lowest stocks we cover, and indicate there are few redeeming features for investors to look at. Even if the marine shipping industry is doing poorly on average, there are many better picks than SFL.
As we’ve all learned multiple times over, the market can change overnight or with one news story. You need to stay on top of things, for these stocks and for others. To help with that, WallStreetZen Premium is the best option. With it, you will have all the fundamental information you need, an unlimited watchlist to get updates as you need them, and more.
Otherwise, if you’re finding it difficult to keep up with the turmoil or simply want an extra expert opinion, then Zen Investor is a great option for you. With it, our own Steve Reitmesiter (with over 40 years of investing experience) provides an updated portfolio to review for yourself, and ongoing guidance of the current market situation with help from our Zen Ratings system.
And while we looked more at retail and heavy importers today, there are interesting stocks in every industry. You can learn more about that here, and make sure to keep an open mind to each option.
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