The Fed is locked up in its tough battle against inflation, and its continued hawkish stance is raising the odds of a recession. However, Jan Hatzius, chief economist at Goldman Sachs, believes a soft landing is still possible, even if the path is bumpy.
Additionally, BofA analysts pointed out that the markets typically rebound after the September slump, and stocks could see an outsized rally later this year and in 2023 if the market follows the election-cycle history.
Given the market’s uncertain prospects, instead of picking high-priced stock, it could be wise to add below-$4 stocks Hill International, Inc. (HIL) and Safe Bulkers, Inc. (SB) to one’s portfolio.
Hill International, Inc. (HIL)
HIL provides project and construction management and other consulting services primarily for buildings, transportation, environmental, energy, and industrial markets.
On August 17, HIL and Global Infrastructure Solutions Inc. (GISI) announced a definitive agreement to merge the diversified construction management companies, setting the stage for increased competitiveness and accelerated global organic growth for-fee infrastructure consulting markets. This should be strategically beneficial for HIL.
For the fiscal quarter ended June 30, 2022, HIL’s total revenue came in at $ 105.73 million, up 4.1% year-over-year. Its gross profit was $37.43 million, up 19.6% year-over-year, while its EPS came in at $0.02, up 300% year-over-year. Also, its operating profit stood at $4.48 million in the same period.
HIL has gained 116.8% over the past three months to close the last trading session at $3.36. The stock gained 72.3% year-to-date.
HIL’s strong fundamentals are reflected in its POWR Ratings. It has an overall A rating, which equates to Strong Buy in our proprietary rating system.The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The stock has a B grade for Quality and Growth. It is ranked #4 out of the 89 stocks in the B-rated Industrial - Services industry.
Click here to see the additional POWR Ratings for HIL (Stability, Sentiment, Value, and Momentum).
Safe Bulkers, Inc. (SB)
SB, based in Monaco, provides marine dry bulk transportation services. The company owns and operates dry bulk vessels for transporting bulk cargoes, primarily coal, grain, and iron ore.
On May 31, 2022, SB announced that it had entered into an agreement to acquire two Chinese dry-bulk, 82,500 dwt, Kamsarmax class vessels. The company also has an outstanding order book of ten newbuild vessels scheduled to be delivered over the next three years. This should improve capabilities.
SB’s net revenues increased 12.3% year-over-year to $91.60 million in the fiscal second quarter of 2022. Its adjusted net income grew 38.8% from the year-ago value to $50.40 million, while its adjusted EBITDA improved 22.9% year-over-year to $66.50 million. Its adjusted EPS increased 29% from its year-ago value to $0.40.
Analysts expect SB’s EPS for the fiscal year ending December 2022 to come in at $1.37, indicating an increase of 8.6% year-over-year. Its revenue is expected to improve marginally year-over-year to $346.47 million in the same period.
SB’s stock has slumped 2.2% intraday to close the last trading session at $3.07.
It is no surprise that SB has an overall rating of B, equating to Buy in our POWR Ratings system. It also has a B grade in Value, Sentiment, Momentum, and Quality. In the 44-stock, A-rated Shipping industry, SB is ranked #9.
In addition to the POWR Rating grades I’ve just highlighted, you can see the SB’s ratings for Growth and Stability here.
HIL shares were trading at $3.36 per share on Thursday afternoon, down $0.00 (0.00%). Year-to-date, HIL has gained 72.31%, versus a -15.38% rise in the benchmark S&P 500 index during the same period.
About the Author: Komal Bhattar
Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
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