Why Did Diana Shipping Inc. Stock Skyrocket 78% in 2013, and Can It Continue?

The shares of Diana Shipping were up an astounding 78% in 2013, compared with a 26% return for the S&P 500. So just what has caused shares to rally?

When looking at a company's stock price performance over a given period, it's valuable to break it down into two categories -- operating performance, and the stock market's expectations.

After a quick look at Diana Shipping's operating performance, it's readily apparent that the company's operating performance wasn't the primary cause behind the share rally. That leaves one reason -- the stock market's expectations.  


The market's expectations, as judged by Diana Shipping's price-to-sales multiple, have risen by an astounding 141% over the year and is the primary culprit behind the rally. In the following video, Motley Fool analyst Blake Bos explains the two factors driving shares higher, and how investors should view investing in Diana Shipping going forward.

Don't miss a much safer alternative to risky shipping stocks
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notability of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.

  

The article Why Did Diana Shipping Inc. Stock Skyrocket 78% in 2013, and Can It Continue? originally appeared on Fool.com.

Blake Bos and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Professional Vs Do it Yourself Investing

Should you get advice or DYI?

View Course »

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Add a Comment

*0 / 3000 Character Maximum