This Shipping Stock Has Set 15 New Highs This Month

• Costamare (CMRE) has strong technical momentum and just set a new 52-week high.
• Shares have a 100% technical “Buy” opinion from Barchart.
• CMRE stock is up nearly 30% in just the last month.
• Analyst sentiment is mixed, but Morningstar sees CMRE as 19% undervalued and Seeking Alpha rates it a “Strong Buy.” 

Today’s Featured Stock

Valued at $1.9 billion, Costamare (CMRE) is a containership owner chartering its vessels to liner companies. The company deploys its containership fleet principally under multi-year time charters with leading liner companies that operate regularly scheduled routes between large commercial ports. 

Costamare also provides a range of shipping services, such as technical support and maintenance, insurance consulting, financial and accounting services. Costamare is headquartered in Athens, Greece.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. CMRE checks those boxes. Since the Trend Seeker signaled a new “Buy” on Nov. 3, the stock has gained 29.61%.

Barchart Technical Indicators for Costamare

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Costamare hit a 52-week high of $16.25 in trading on Dec. 3.

• CMRE has a Weighted Alpha of +49.62.
• Costamare has a 100% “Buy” opinion from Barchart.
• The stock gained 21.97% over the past year.
• CMRE has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $16.08 with a 50-day moving average of $12.95.
• Costamare has made 15 new highs and gained 29.53% in the last month.
• Relative Strength Index (RSI) is at 81.54.
• There’s a technical support level around $15.50.

Don’t Forget the Fundamentals

• $1.9 billion market capitalization.
• 2.87% dividend yield.
• Revenue is projected to decrease 42.39% this year and another 18.67% next year.
• Earnings are estimated to increase 6.70% this year but decrease by 2.04% next year.

Analyst and Investor Sentiment on Costamare

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.

It looks like Wall Street is not impressed, but individual investors like this stock.

• The Wall Street analysts tracked by Barchart have issued 2 “Hold” opinions on the stock with price targets between $10.30 and $12.00.
• Value Line rates the stock “Above Average.”
• CFRA’s MarketScope Advisor rates it a “Buy.”
• Morningstar thinks even with the stock’s recent runup, it is undervalued by 19% with a fair value of $19.23.
• 134 investors following the stock on Motley Fool think it will beat the market while 23 think it won't.
• 9,350 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line on Costamare

The company has over $2.5 billion in multi-year backlog orders, so the 2.87% dividend looks very safe. Keep your stop losses in place.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.