Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has two shipping names that belong on your aggressive growth radar screen. This week his thesis is pretty simple in that the unrest in the Middle East is going to cause shipping rates to move higher. Brian speaks specifically about the conflict in the Red Sea and how a rising tide can lift all ships.
The first stock that Brian takes a look at is Teekay Tankers TNK. This is a Zacks Rank #1 (Strong Buy) and it also pays a dividend of $1.00 per share for a yield of 1.7%. Brian notes that he generally does not highlight stocks that pay a dividend as that is a characteristic that is not normally associated with growth stocks. Most of the time a growth company will reinvest its profits into the business to continue its growth.
Brian reviews the earnings history, estimate revisions, and the valuation of the stock before looking at the long term chart. Teekay Tankers (TNK) is scheduled to report on February 22nd, so there is a good amount of time to make a decision on if you want to make an investment before the print.
Pangaea Logistics Solutions PANL is next up and is also a Zacks Rank #1 (Strong Buy). This stock also pays a dividend of $0.40 per share which brings the yield to 4.7%. This company won't report again until March 20th, which is a long ways away.
Both of these stocks have wonderful valuations in terms of forward PE. Pangaea Logistics Solutions PANL 8 trades at just under 7x forward earnings while Teekay Tankers TNK trades just over 4x.
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