Why Textainer Group Stock Shot Higher in May
The world does not currently have enough containers in the right places to handle global cargo demand, and Wall Street has seemingly picked the stock it believes will benefit from the shortage. Textainer Group Holdings (NYSE: TGH) jumped 31.5% in May, according to data provided by S&P Global Market Intelligence, on expectations container rates should hold up well into the second half of the year.
Textainer is in the business of buying, leasing, and selling marine cargo containers. It's not a glamorous business, but those containers are vital to the global shipping industry. And they are currently in high demand. The pandemic caused container manufacturing production to temporarily shut down, limiting new supply, and many of the containers that are in service are not in the right position to handle cargo awaiting shipment.
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Source Fool.com
