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4-Star Stocks Poised to Pop: Genco Shipping

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:06PM

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Market-trouncing returns could be written in this 4-star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drybulk hauler Genco Shipping (NYSE:GNK) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Genco's business and see what CAPS investors are saying about the stock right now.

Genco facts

Headquarters (Founded)

New York, N.Y. (2004)

Market Cap

$215.89 Million

Industry

Shipping

Trailing-12-Month Revenue

$369.5 Million

Management

President Robert Buchanan

CFO John Wobensmith

Return on Capital (Average, Past Two Years)

7.6%

Dividend Yield

55.7%

Competitors

Eagle Bulk Shipping (NASDAQ:EGLE)

Navios Maritime (NYSE:NM)

CAPS Members Bullish on GNK Also Bullish on:

Diana Shipping (NYSE:DSX)

DryShips (NASDAQ:DRYS)

CAPS Members Bearish on GNK Also Bearish on:

Euroseas (NASDAQ:ESEA)

Excel Maritime (NYSE:EXM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 752 of the 786 members who have rated Genco -- some 96% -- believe the stock will outperform the S&P 500 going forward. These Fools include CAPS All-Star Hetepheres and rfoben.

Last month, Hetepheres tapped Genco as a way to get paid while you wait: "I see this one as being able to weather the current storm (so to speak) and do okay in the long run. In the meantime, DIVIDENDS."

In a pitch posted just yesterday, rfoben shares that contrarian spirit and elaborates on Genco's ability to bounce back:

Conservative, low cost producer, low P/E, price to tangible book is about 35%, high dividend (will likely be cut at least in half--still will be 20%).

Relatively new fleet, serving China especially. Current 80% gross margin under contracts into 2010; will see significant pressure here but Genco will ultimately prosper.

What do you think about Genco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Genco Shipping & Trading Limited Stock Quote
Genco Shipping & Trading Limited
GNK
$17.45 (-0.34%) $0.06
DryShips Inc. Stock Quote
DryShips Inc.
DRYS
Eagle Bulk Shipping Inc. Stock Quote
Eagle Bulk Shipping Inc.
EGLE
$50.99 (4.49%) $2.19
Diana Shipping Inc. Stock Quote
Diana Shipping Inc.
DSX
$6.00 (1.09%) $0.07
Euroseas Ltd. Stock Quote
Euroseas Ltd.
ESEA
$25.25 (3.44%) $0.84

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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