Hapag-Lloyd Stock: 31 Percent in One Week

Last Updated: 20. Dezember 2023By

The stock market is slowly bidding farewell to the old year. Some stocks are particularly noticeable – especially Hapag-Lloyd as one of the outstanding companies at the end of the year. Thus, the share gained a good 16% on a single day at the end of the last week – this could be a sign that you, as an economically interested investor, could potentially sense new opportunities at the logistics company. After all, sea and air freight are essential components of our economy – and the share is inexpensive!

Hapag-Lloyd: What’s going on in the background? The decisive question will be what is happening behind the scenes with the company. Formally, the current news is not so good that a price increase of 31% within five trading days should be possible. In fact, the price has recently increased mostly because Hapag Lloyd reacted to the attack in the Red Sea.

The company will no longer sail there, so to speak – and the markets apparently seemed satisfied. However, I would not pay attention to such explosions at all. What matters are the economic conditions.

In short: If the economy is running, freight business will also generate profits – this rule of thumb is particularly important in shipping, as trips over the seas are the most significant delivery movements in the entire world economy. The figures for the current year are good to very good.

Very good numbers – and a but… Limit yourself to the P/E ratio (price-earnings ratio), Hapag-Lloyd is quoted at a value of around 8.5. That is quite low and attractive in view of the dividends the company also pays out. The dividend yield will amount to about 6.6%.

Attention: Analysts and analysts currently estimate the P/E ratio for the coming year at something over 30. The background are declining profits in the assumptions. This refers to both the world economy, which is currently heading towards more difficult times, and the world political situation – because the conflicts around the war in Ukraine and the Middle East will continue to hold the world economy in check. The cautious estimates reflect this situation.

That means for my assessment: I actually assume that Hapag-Lloyd will earn considerably less money and is therefore relatively expensive. The estimates of analysts, for example, are based on a price target that – in consensus – is -25% below the current listings. The share will then only cost 99 euros instead of currently over 130 euros. Therefore: The past days were a firework for the share – I do not expect this development to continue at the traditional company!

Hapag-Lloyd: Nice price gains – but… WKN: HLAG47 – ISIN: DE000HLAG475 Source: https://fundamental.aktienscreener.com/DE000BASF111/EI/basf-se/data