10 Best Quality Penny Stocks To Buy

4. Safe Bulkers, Inc. (NYSE:SB)

Stock Price as of September 3: $4.86

Number of Hedge Fund Holders: 15

Safe Bulkers, Inc. (NYSE:SB) is a global company that offers marine dry-bulk transportation services, specializing in the shipment of commodities such as grain, coal, and iron ore across the world. The company has 46 vessels with 4.6 million deadweight tonnage (total weight-carrying capacity).

At its latest earnings call, Loukas Barmparis, President of Safe Bulkers (NYSE:SB) mentioned the company’s competitive edge in the industry. He mentioned that 25% of the global fleet is over 15 years old and increasingly uncompetitive due to environmental regulations.

On the other hand, the company has modernized its fleet, with 10 Phase 3 vessels delivered since 2022 and 22 vessels undergoing environmental upgrades. With 85% of its fleet built in Japan and an average fleet age of 9.9 years, it is well-positioned to remain competitive.

The company is benefiting because fewer new dry bulk ships are being built right now. Since fewer ships will be available, there will be less competition, which should help keep shipping rates high or even increase them in the near future. This could lead to better profits for the company.

In the second quarter, Safe Bulkers (NYSE:SB) reported an EPS of $0.17 and a revenue of $78.5 million, which was up 11.2% year-over-year. Moreover, analysts expect a nearly 38% year-over-year increase in its earnings per share in 2024. The company is trading at a forward price-to-earnings ratio of 5.8x as of September 3, compared to its industry median of 19.13.

In the second quarter, 15 hedge funds held positions in Safe Bulkers (NYSE:SB), at a combined value of $28.133 million. Renaissance Technologies is the company’s largest shareholder with 3.31 million shares worth over $19.267 million. It is the 4th best quality penny stock to buy on our list.