Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

This Freight Stock Just Got an Upgrade and Institutional Buyers

ZIM Integrated Shipping Services stock

Investment houses like The Goldman Sachs Group Inc. (NYSE: GS) have an average winning ratio of over 85% in their trading business. You can wonder how they achieve these results, or you can rest assured that their idea-generation process relies heavily on a “top-down” analysis. Today, you will see what these professionals may be looking at.

This process leads to a peaking interest in the transportation sector for reasons that will become clear shortly. By using MarketBeat’s research tools, you can start to screen for stocks in this space. Before you get in the weeds of it all and make your own selection, remember that ZIM Integrated Shipping Services (NYSE: ZIM) is a standout deal at a ridiculous discount today.

With shipping and freight quotes moving, stocks like ZIM will likely see a boost in their earnings per share (EPS) coming in the following quarterly results. Being only one of many reasons to believe in the stock, you will find out why Wall Street analysts upgraded their price targets on the stock, coupled with some institutional buying.

Starting at the Top

For the best picture of the current economic environment, traders may look to the PMI index of ISM manufacturing. While one month of data can give you great insights, you should take more than a couple of months to tune into the market’s wave.

Digging in, you will see that the transportation equipment industry has broken out of its December contraction and is now expanding for two consecutive months. Knowing that each quarterly earnings report contains results for the past three months, you can probably guess that stocks exposed to shipping (and its rising rates) can beat earnings expectations.

According to employment data from the past month, the United States economy added 275,000 jobs. Out of those, 19,700 (or 7.2%) went to the transportation and warehousing industry. Now, why else would hiring managers and logistics planners go on a hiring spree if not for the expectation of busier times ahead?

Now that geopolitical tensions are rising in the Hamas strip, Israel-based ZIM Integrated stock suffers from a temporary contraction. The stock trades at 89% of its 52-week high, whereas competitors like Kirby Co. (NYSE: KEX) and Scorpio Tankers Inc. (NYSE: STNG) trade at 100% and 95%, respectively.

The lackluster performance definitely needs to reflect rising shipping rates today. According to futures contract data from CME Group Inc. (NASDAQ: CME), traders are bidding contracts higher for May and June 2024.

These expectations also align with the FedWatch tool, which is pushing for interest rate cuts priced for those same months. If the Federal Reserve (the Fed) lowers interest rates by those dates, global shipping and freight quotes will likely go as high as traders expect due to more global commerce.

Screen for the Best

You now know that ZIM Integrated shows a discount to competitors, but is it cheap for a reason? It is probably a hiccup due to conflicts affecting shipment routes. You will see ZIM earning some love by refreshing the list of stocks recently upgraded by analysts.

Those working for Jefferies Financial Group Inc. (NYSE: JEF) see a valuation of up to $20 a share for ZIM. These price targets reflect a near 72% upside from the stock's current price.

But valuations aren’t the only thing making ZIM the top pick in the space. These analysts expect the stock’s EPS to grow by as much as 30% over the next twelve months, significantly higher than the industry’s 14% average.

Knowing that the industry trend is favorable and the global landscape is set for ZIM to likely beat its subsequent quarterly earnings, some institutional buyers have started to buy the stock. Barclays added 19.8% to its $1.1 million position in ZIM this month, but that’s not all.

Charles Schwab Co. (NYSE: SCHW) also added 75% to its larger $2.9 million already in the stock. In a vote of confidence for industry-leading growth, these asset managers see the writing on the wall, double-digit ‘unjustified’ discounts.

On a price-to-book (P/B) valuation basis, ZIM Integrated stock trades at a discount of 50% to its book, or a 0.5x ratio. On the other hand, competitors Kirby and Scorpio trade at respective 1.7x and 2.8x ratios. This spread makes ZIM a ridiculous discount based on a fear-driven market.

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.