SBLK Stock Forecast: Is SBLK Stock a Buy or a Sell in 2023?
SBLK Stock Forecast: Star Bulk Carriers Corp Stock is technically bullish. The Average SBLK Stock Forecast for the next 12 Months is $31
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. The motto of the company is, “Give me a Ship and I Shall move the Earth” which is inspired by Archimedis’ original quote.
Star Bulk carriers are majorly involved in the transport of minerals around the world. The company’s vessels transport major bulks of iron ore, minerals, and grain and minor bulks of bauxite, fertilizers, and steel products.
SBLK Stock Performance
- 1 M: +15.6%
- 3 M: +28.2%
- 1 Y: +8.9%
SBLK Stock Forecast: Last Quarter Result
The Star Bulk Carriers posted revenues of $364.14 million for the quarter that ended September 2022. This compares to a decline of 12.4% against the year-ago revenues of $415.69 million. The company has topped consensus revenue estimates four times over the last four quarters.
Here are the Q3 Earnings of Star Bulk Carriers
- Q3 Revenue at $364.14 M down 12.4% compared to the same period in 2021.
- EPS $1.33 per share, missing the Zacks Consensus Estimate of $1.42 per share. EPS in the same period in 2021 was $2.19 per share.
- Diluted EPS $1.07 down 50.23% YOY.
- Operating Income: $123.81 M, Down 46.88% YOY.
- Net Profit Margin: $123.81 M, Down 43.19 YOY
- Cost of Revenue: $186.9 M, UP 43.88% YOY.
SBLK missed both EPS and the revenue target in the 3rd quarter. This comes after reporting a surplus in the first two quarters of 2022. Star Bulk Carriers missed its revenue target by 3.64% and the EPS was down 1.15% in Q3.
SBLK Stock Predictions for the next 12 Months
|Average SBLK Stock Forecast for the next 12 Months||$31|
SBLK Stock Forecast: Technical Analysis
Last Trading Days’ Performance:
- Open: $22.11
- Close: $23.39
- Gain/Loss: +5.79%
- Market Cap: $2.40 B
SBLK Stock Forecast Using Technicals
After moving above the 50-day and the 200-day moving averages, SBLK has drawn crucial support at $21.6. The stock price has remained above it and every time it has retested this support, the SBLK stock has reversed and moved higher. On the last trading day, SBLK closed higher.
SBLK is technically bullish but in case of a bearish momentum and SBLK fails to hold on to the current support level, it will likely retest the 50-day MA which is around 20.5. On the higher end, with the extended bullish momentum, SBLK will likely rise higher and test the resistance which is around $26.7.
On the RSI chart, the RSI is within the over brought territory. The buyers have outnumbered the sellers and with more buyers in the market, SBLK is bullish. The RSI on the last trading day broke above the ceiling created by the 14-day MA.
On the above chart, the Stochastic RSI is above the oversold territory and is likely to move higher as more buyers are likely to enter the market. The Stoch RSI is above the 14-day MA with buyers outnumbering the sellers, it will likely enter the over brought territory.
The MACD series proper has been within the bullish zone for the last few days. After retesting the 9-day EMA, the MACD series proper has moved above of the 9-day EMA. It is a buy signal.
- Moving Average: Buy
- RSI: Buy
- Stochastic RSI: Bullish
- MACD: Buy
SBLK Stock Forecast: Bull Case
Committed Profit Sharing With Shareholders: Star Bulk Carriers has been known to provide a significant portion of its profit to shareholders. As per the last 3-year payout, the company has retained around 34% of the total profit while paying out 66% of its profit. Star Bulk Carriers have been successful in maintaining a profitable book despite returning most of its profits to shareholders.
Higher Growth Figure: Star Bulk Carriers is a part of the shipping industry. The past 5 years’ growth of the shipping industry has been around 63% while Star Bulk Carriers’ 5 years annual earning growth was around 79%.
Positive Revenues and EPS: In the last 4 quarters including the final quarter of 2021, SBLK has been able to beat the revenue as well as the EPS targets. In the Q2 of 2022, the overall revenue of SBLK grew by 8.37% while the EPS was 6.92%.
Increase Demand in Iron Ore and Coal: It is predicted that the global iron ore demand is set to rise to 2.7 BT by 2025. The increase in demand will involve more transportation usage giving a boost to the shipping carrier industries. The the hike in price of natural gas will create a greater demand for coal.
SBLK Stock Forecast: Bear Case
Decrease in Shipping Volumes: This factor will mostly rely on the overall global economic condition. If there is a decrease in the shipping volumes. the demand for the shipping industries will likely fall. As a result, the shipping stock may witness a fall with the decrease in demand for the shipping volume.
Not a Good Short-term Investment: The shipping stocks have been a good long-term investment. For short-term traders, Shipping stocks may not be a profitable investment as shipping stocks are known to deliver around five to ten percent return by year.
SBLK Stock Forecast 2023: Conclusion
SBLK stock did suffer in the Q3 of 2022. However, with the COVID restriction being lifted, the trade volume has once again started to surge. Star Bulk Carriers being one of the major players providing the transportation solution is set to play a key role. There SBLK stock is a good to buy, however, it is advisable to make your own research before investing in any stock.