10 Best Fundamentally Strong Penny Stocks to Invest In

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1) Safe Bulkers, Inc. (NYSE:SB)

Stock Price as of 4 November: $4.12

3-Year Revenue Growth: 7.3%

3-Year Net Income Growth: 13.8%

Average Upside Potential: ~31%

Number of Hedge Fund Holders: 15

Safe Bulkers, Inc. (NYSE:SB) offers marine drybulk transportation services.

Safe Bulkers, Inc. (NYSE:SB) has plans to expand its fleet with a strong emphasis on environmental upgrades and renewal strategy. Market experts believe that the drybulk outlook is favourable with limited supply and resilient demand. Safe Bulkers, Inc. (NYSE:SB)’s fleet renewal strategy consists of the divestment of older vessels and the addition of second-hand vessels and Phase 3 new builds. The company highlighted that upgrades to the existing fleet, which includes low-friction paints, led to significant fuel consumption savings.

Safe Bulkers, Inc. (NYSE:SB) plans to invest in fleet upgrades using the revenue from scrubbers, and it is open to selling older ships at premium prices because of good condition and recent upgrades. The company has a clear strategy for fleet expansion and renewal and an emphasis on sustainability and operational efficiency. With a favorable outlook for the broader drybulk market, Safe Bulkers, Inc. (NYSE:SB) is well-positioned to capitalize on market opportunities.

The company stated that critical developments of Q2 2024 include the stronger market as compared to the prior year, implementation of its new integrated management system in accordance with DryBMS standards, and the order of 2 additional Phase 3 new builds consistent with its fleet renewal strategy. Safe Bulkers, Inc. (NYSE:SB) has been gradually renewing its fleet with newbuilds which are designed to address the most recent International Maritime Organization (IMO) regulations associated with the reduction of greenhouse gas emissions and nitrogen oxide emissions, and selectively selling older vessels.

While we acknowledge the potential of SB as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than SB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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