10 Biggest Stocks with Negative Beta to Consider

6. International Seaways (NYSE:INSW)  

Number of Hedge Fund Investors: 34  

Beta: -0.08  

Market Cap as of October 13: $2.55 Billion  

International Seaways (NYSE:INSW) is one of the largest tanker companies providing energy transportation services globally and operates a fleet of crude and product tankers. The company’s fleet has an average age of 12.1 years, and it operates under a combination of pool agreements, time charters, and voyage charters.

International Seaways’ (NYSE:INSW) fleet is well-positioned to capitalize on growth in the tanker market, with a large and diverse fleet that includes a mix of crude and product tankers. Additionally, the company has a strong balance sheet, with low debt and a solid cash position, which provides it with the financial flexibility to invest in its business and return capital to shareholders.

In Q2, International Seaways (NYSE:INSW) generated $144.7 million in net income. The company’s operating cash flow and operating income sufficiently cover its interest expenses, and its breakeven cash flow of $16,100 provides a cushion in case of weaker day rates. International Seaways’ (NYSE:INSW) debt maturity profile is also well-distributed, with a significant portion of its debt maturing beyond 2028. The company’s share buyback program is another positive factor, with International Seaways (NYSE:INSW) having repurchased $25 million worth of shares in the second quarter.

International Seaways’ (NYSE:INSW) breakeven cash flow and solid balance sheet provide it with a cushion in case of weaker day rates. Additionally, the company’s fleet is well-positioned to capitalize on growth in the tanker market, and its diverse revenue streams reduce its exposure to any one particular market segment. The company’s valuation is also attractive, with a forward PE ratio of 5.27, which represents a 56.93% discount to the sector median of 12.24. Industry analysts have reached a consensus on the stock’s Buy rating, with an average target price of $69.50 that suggests an almost 29% upside potential from its current levels.