10 Best NYSE Penny Stocks To Buy

2. Nordic American Tankers Limited (NYSE:NAT)

Share Price as of June 27: $4.13

Number of Hedge Fund Holders: 18

Nordic American Tankers Limited (NYSE:NAT) is a Bermuda-based tanker company that is engaged in acquiring and chartering double-hull tankers. In the first quarter, 18 hedge funds held positions in Nordic American Tankers Limited (NYSE:NAT) and their stakes amounted to $20.25 million. As of March 31, Two Sigma Advisors is the most dominant shareholder in the company and has a position worth $8.57 million.

The global crude oil tanker market is robust with constrained supply and increasing tonne-mile demand for crude oil transportation. Nordic American Tankers Limited (NYSE:NAT) has profited from this factor due to its fleet of Suezmax tankers to meet global shipping demands efficiently. In the first quarter of 2024, the company reported a strong financial performance with a net profit of $15.1 million. It is evidence that the company is able to generate consistent earnings amidst market volatility. Moreover, the company generated $37.6 million in cash from operating activities.

On the Street, the stock sports a consensus Buy rating and analysts’ 1-year median price forecast implies an upside of 36% from current levels. The stock is trading at 8.75 times its forward earnings, a 20% discount to its sector and a 43% discount to its 5-year historical average. Considering analysts expect earnings to grow by 6% this year, NAT is not expensive relative to peers and its historical average.