Buy, Sell or Hold ZIM Stock? Key Insights Ahead of Q4 Earnings

Core Viewpoint - ZIM Integrated Shipping Services Ltd. is expected to report significant year-over-year growth in Q4 2024 earnings, but forecasts for 2025 indicate a decline in revenues and earnings per share [2][3]. Financial Performance - The EPS estimate for Q4 2024 is $3.47, reflecting a year-over-year increase of 382.1$7.2 billion, indicating a contraction of 13.8% year over year, while the EPS estimate is $3.19, implying a decline of around 81% [3]. Earnings Expectations - The current Earnings ESP for ZIM is 0.00%, and it holds a Zacks Rank of 3 (Hold), suggesting that an earnings beat is not anticipated this time [4][5]. - The company has surpassed EPS estimates in three of the last four quarters, with an average earnings surprise of 12.6% [3]. Factors Influencing Results - Increased voyage operating costs and high labor costs are expected to negatively impact the bottom line [6]. - Geopolitical risks and tariff concerns are anticipated to pose operational challenges [6]. - Fleet expansion initiatives and reduced container availability due to regional tensions are likely to have positively influenced performance, raising freight costs and revenues [7]. Stock Performance - Over the past year, ZIM's shares have increased by 79.9%, outperforming both the Zacks Transportation - Shipping industry and the broader Zacks Transportation sector [8]. Valuation Metrics - ZIM is trading at a forward sales multiple of 0.34, significantly lower than the industry average of 2.15, indicating a relatively cheap valuation [14].