ZIM marks its debut year with a 787% Jump in net income. Should you buy it now?


Shares of ZIM Integrated Shipping Services Ltd (NYSE:ZIM) rose more than 7% to a record above $77 as it reported robust Q4 2021 and full-year results. Only a year since the company debuted on the NYSE, a net income of $4.65 billion in FY21 was a robust upturn from only $524 million in the prior year.

EBITDA in FY21 was reported at $6.60 billion, an increase of 537% from the prior year. The company ticked all the boxes right as the earnings in the fourth quarter also rose by triple digits.

As if reporting robust FY21 and fourth-quarter results was not enough, ZIM said it expects EBITDA of between $7.1 billion to $7.5 billion in FY22. The guidance was, of course, good enough to trigger a stock jump, which has been on an uptrend since its debut.

The stock has already gained by more than 278% in the last year. The key question now is; will ZIM stock maintain the gains?

ZIM maintains an uptrend as earnings excite

Source – TradingView

Technically, ZIM has maintained an uptrend of higher highs and higher lows since making an NYSE debut. The stock has also held above the 100-day MA and only dipped slightly below the 50-day in periods of a slight market correction.

These are affirmations of a strong bullish move that could continue following the strong debut year and raised guidance. However, at the current price of $74, the stock is correcting after tapping a high of $77 following the robust quarter results.

Looking at the RSI, the stock is close to the overbought region, at a reading of 61. Although this does not indicate that the stock may fall, it invites caution and calls for buy on a retreat to a support zone.

Concluding thoughts

ZIM has demonstrated that it is a viable stock following the robust earnings and raised guidance.

However, investors may take profits at the current level as the stock approaches the overbought region. I recommend a buy on a retreat to potential support at $67, or preferably where the support meets the 100-day MA at $60.

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