Is Diana Shipping (DSX) Headed for a Big Move?

Diana Shipping Inc. (DSX) provides shipping transportation services. The company, through its subsidiaries, operates a fleet of vessels consisting of dry bulk carriers such as Panamax, Kamsarmax, Post-Panamax, Capesize and Newcastlemax vessels. Using this fleet, the firm provides transportation services for various goods including coal, iron ore, and grains…

As the global economy has continued to open up, the demand for shipping has sky-rocketed. This has benefited shipping stocks like Diana Shipping Inc. (DSX). This has been especially true due to high demand for steel in emerging markets and massive need for dry bulk shipping.

The company’s current ratio of 2.6 indicates that it has more than enough liquidity to handle short-term obligations. In terms of growth, analysts expect earnings to soar 240% next year. This has led to a Growth Grade of B in our POWR Ratings system.

The stock looks underpriced with a forward P/E of only 4.09. DSX has shown mixed performance over the past month as shown in the chart below.

Take a look at the 1-year chart of DSX below with my added notations…

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