Why Zim Integrated Shipping Stock Was Crushing It This Week

Container logistics company Zim Integrated Shipping Services (NYSE: ZIM) continues to benefit from high demand for its services, and lately investors have been here for it. The company's stock was notching double-digit gains over the past few days, with a more than 11% rise in price week to date as of Friday early morning, according to data compiled by S&P Global Market Intelligence . An encouraging earnings report was the major reason why, and a new analyst note from a Zim bull didn't hurt either.

Revenue and net income rise by nearly 50%

Zim got the jump on the stock trading week by posting its second-quarter figures before market open on Monday. The quarter was an all-around solid one for the container shipper. On the back of a nearly 11% year-over-year rise in carried volume, the company managed to crank its revenue almost 48% higher to $1.93 billion. Net income also saw a sprightly lift, improving by 46% to $19 million. Both headline numbers easily topped the average analyst estimates.

Most investors are forward-thinking, so for nearly any type of publicly traded company forward expectations matter.

Another factor propelling Zim stock higher was management's raised guidance. It now expects it will post non- IFRS (adjusted) earnings before interest, taxes, depreciation, and amortization ( EBITDA ) of $2.6 billion to $3 billion. That's quite a hike from its previous forecast of $1.15 billion to $1.55 billion.

It wasn't only investors who were high on the stock

Shortly after the quarterly results were published, analyst Omar Nokta of Jefferies reiterated his buy recommendation and $22-per-share price target on Zim stock. In his new research note on the company, Nokta wrote admiringly of management's discipline with costs as revenue and net income rose notably, and said its performance "indicated a much stronger second half to come."

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool recommends Zim Integrated Shipping Services. The Motley Fool has a disclosure policy .