ZIM marks its debut year with a 787% Jump in net income. Should you buy it now?

Shares of ZIM Integrated Shipping Services Ltd (NYSE:ZIM) rose more than 7% to a record above $77 as it reported robust Q4 2021 and full-year results. Only a year since the company debuted on the NYSE, a net income of $4.65 billion in FY21 was a robust upturn from only $524 million in the prior year.

EBITDA in FY21 was reported at $6.60 billion, an increase of 537% from the prior year. The company ticked all the boxes right as the earnings in the fourth quarter also rose by triple digits.

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As if reporting robust FY21 and fourth-quarter results was not enough, ZIM said it expects EBITDA of between $7.1 billion to $7.5 billion in FY22. The guidance was, of course, good enough to trigger a stock jump, which has been on an uptrend since its debut.

The stock has already gained by more than 278% in the last year. The key question now is; will ZIM stock maintain the gains?

ZIM maintains an uptrend as earnings excite

Technically, ZIM has maintained an uptrend of higher highs and higher lows since making an NYSE debut. The stock has also held above the 100-day MA and only dipped slightly below the 50-day in periods of a slight market correction.

These are affirmations of a strong bullish move that could continue following the strong debut year and raised guidance. However, at the current price of $74, the stock is correcting after tapping a high of $77 following the robust quarter results.

Looking at the RSI, the stock is close to the overbought region, at a reading of 61. Although this does not indicate that the stock may fall, it invites caution and calls for buy on a retreat to a support zone.

Concluding thoughts

ZIM has demonstrated that it is a viable stock following the robust earnings and raised guidance.

However, investors may take profits at the current level as the stock approaches the overbought region. I recommend a buy on a retreat to potential support at $67, or preferably where the support meets the 100-day MA at $60.

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