7 Cheap Small-Cap Stocks To Buy Now

3. Scorpio Tankers Inc. (NYSE:STNG)

PE Ratio (FWD): 5.39

Number of Hedge Fund Holders: 42

Scorpio Tankers Inc. (NYSE:STNG) is a global leader in the responsible transportation of refined petroleum products, with a fleet of 112 vessels, including LR2, MR, and Handymax tankers. The company utilizes its diverse fleet to transport a range of products, including gasoline, diesel, jet fuel, kerosene, and naphtha from refineries to consumers.

It serves a wide range of clients, including oil corporations and traders, and optimizes its operations by employing both owned and time-chartered vessels.

On September 3, Scorpio Tankers (NYSE:STNG) announced the sale of two MR product tankers, STI San Antonio and STI Texas City, both built in 2014 and equipped with exhaust gas cleaning systems or scrubbers, for $42.5 million each. The tankers are expected to be sold by the end of the year.

Additionally, the company has made a deal to rent out another ship for three years at a daily rate of $29,550. The rental agreement will start in late 2024 and is with a well-known oil company. Overall, these moves show that it is actively managing its fleet to improve finances and generate reliable revenue.

Scorpio Tankers (NYSE:STNG) is a shareholder-friendly company and is committed to improving its shareholder value. It has also recently shared an update about its stock buyback plan. Since July 30, 2024, the company has bought back 2,415,321 of its own shares from the market, paying an average price of $72.45 for each share. From April 1, 2024, the total number of shares repurchased is 3,813,287, with an average price of $74.54 each.

As of September 6, the company has 50,760,778 shares left in circulation. Additionally, the company still has $225 million available to spend from the total $400 million that was set aside for this stock buyback program. Moreover, it is also a dividend-paying company with a yield of 2.23%.

Scorpio Tankers (NYSE:STNG) is ranked at 3 on our list of cheap small-cap stocks to buy now. As of September 27, the company is trading at a forward PE ratio of 5.39, at a significant discount of nearly 53% from its sector median.