From Yahoo Finance: 2025-05-20 13:49:00

Danaos Corporation (DAC) is trading at $86.57 with a trailing P/E of 3.53. The company has over $3.7 billion in contracted backlog at a 70% EBITDA margin and is aggressively buying back shares, with potential EPS well above $17.62 and a sustainable EPS range of $27-28 through 2032.

Despite historical volatility in the shipping industry, Danaos operates more like a lessor and could potentially be worth over $200 per share based on comparable transactions. The company offers a 4% dividend yield, consistent dividend hikes, and potential for higher returns, with 13 hedge fund portfolios holding DAC.

While Danaos Corporation (DAC) is not on the list of the 30 Most Popular Stocks Among Hedge Funds, the company offers a promising investment opportunity with potential for higher returns, a lower valuation multiple, and a focus on AI stocks for shorter-term gains. Investors seeking a cheaper AI stock can explore other options highlighted in a recent report.

Read more: Danaos Corporation (DAC): A Bull Case Theory