Is Kirby Corporation (KEX) the Best Marine Shipping Stock to Invest in Now?
According to Dr. Shashi Kumar of the US Naval Institute, geopolitical developments tend to have a greater impact on the highly volatile shipping market compared to market forces. Since the 2007–08 financial crisis, the broader global shipping market continues to face a series of new challenges. However, the challenging conditions this industry faced in 2024 were unmatched over the past decade and a half, says Kumar. The year's challenging conditions included the prolonged war in Ukraine, wanton Houthi attacks in the Red Sea as well as increased tensions in the South China Sea. Kumar also noted that container ships decided to avoid the Suez Canal and chose to transport goods around southern Africa, which increased transit time and greenhouse gas emissions. Despite this, the owners of these container ships saw a profitable year.
The marine vessels market is expected to reach US$133.63 billion by 2030 from US$111.10 billion in 2024, as per Research and Markets. While global trade continues to fuel the demand for different types of ships, the military navy growth has also been lending support to expand the market. Notably, the requirement for larger and more versatile vessels stems from the demand for efficient transportation of goods. Also, increasing passenger and tourism needs continue to fuel fleet expansion and technology upgrades.
The firm believes that several cruise lines have been adding more ships to cater to the needs of travelers focusing on unique experiences. Overall, the strategic fleet renewal remains critical for market improvement. New and fuel-efficient vessels have been supporting to meet environmental standards and lower costs, says Research and Markets. The transition towards sustainable shipping practices continues to become more critical to obey the international rules targeting reduced emissions.
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Research and Markets believes that cargo vessels continue to become a critical part of commercial shipping. Such vessels tend to play a vital role in global trade by transporting numerous goods across the seas. With the demand for faster and more reliable shipping increasing, the broader industry remains focused on adopting new technologies. Notably, modern navigation systems, eco-friendly fuels, and automation tend to enhance efficiency, improve safety, and reduce the environmental impact. Therefore, as global trade has been expanding, cargo vessels remain critical when it comes to international commerce and economic growth.
To list the 11 Best Marine Shipping Stocks to Invest in Now, we used a screener to shortlist the companies catering to the broader marine shipping industry. Next, we mentioned the hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A line of dredgers and cranes at a marine transportation dock.Kirby Corporation (NYSE:KEX) operates domestic tank barges in the US. Through the marine transportation segment, the company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. Stifel analysts sustained a 'Buy' rating on the company's stock with a price objective of $135.00. The company's sales of power equipment for data centers were highlighted. As per the analysts, the M&A opportunities in the inland barge market appear to be increasingly tangible, which can act as a catalyst for Kirby Corporation (NYSE:KEX)'s stock.
The company continues to experience a strong demand throughout its business segments. Its emphasis on the inland barge market, together with its strong sales in power equipment, places it well in the industry. The firm's report demonstrated confidence in Kirby Corporation (NYSE:KEX)'s operational strength and its growth potential, mainly given the possible impact of strategic acquisitions. For FY 2024, it saw net earnings attributable to the company of $286.7 million or $4.91 per share as compared to $222.9 million or $3.72 per share for 2023. Overall, Kirby Corporation (NYSE:KEX)'s barge utilization rates averaged in the 90% range for Q4 2024. During the quarter, the stable customer demand, together with continued limited availability of large capacity vessels, led to mid-to-high-20% YoY increases on term contract renewals as well as average spot market rates that increased in the low teens range YoY.
Overall, KEX ranks 1st on our list of best marine shipping stocks to invest in now. While we acknowledge the potential of KEX as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than KEX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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