The stock market ended last month with four consecutive daily declineswith benchmarks suffering their biggest monthly declines since 2015. The selloff was triggered by Jerome Powell’s remarks about keeping monetary policy tight for some time.
Although the Fed has already raised rates four times for a total of 2.25 percentage points, Cleveland Federal Reserve Chair Loretta Mester said Wednesday that she sees sharply rising interest rates before the central bank can ease.
Despite such uproar, investing in the market could be a good strategy to prevent his money from losing value in an inflationary environment. Although the stock market saw declines, it also generated returns that outpaced inflation.
Fundamentally Strong Penny Stocks Overseas Shipholding Group, Inc. (OSG), Hill International, Inc. (HIL) and ARC Document Solutions, Inc. (BOW) look poised to beat market volatility. So these stocks could be solid investments now.
Overseas Shipholding Group, Inc. (OSG)
OSG owns and operates a fleet of ocean-going vessels engaged in the transportation of crude oil and petroleum products in United States flag trade. The company serves independent petroleum traders, refinery operators and government entities.
On June 13, OSG announced that its board of directors had authorized a program to purchase up to five million shares of common stock in the company. The Company intends to fund the share buyback program with excess cash.
For the second quarter of 2022 ended June 30, OSG’s shipping revenue increased 33.5% year-over-year to $117.99 million. Its adjusted EBITDA increased 209.9% from the prior year quarter to $31.48 million. Net earnings and net earnings per Class A share were $3.74 million and $0.04, up 135% and 133.3% from the prior year period.
OSG has gained 65.4% year-to-date and 49.5% over the past six months to close its latest trading session at $3.11.
OSG POWR Rankings reflect this promising prospect. The company has an overall rating of A, which translates to Strong Buy in our proprietary rating system. POWR ratings rate stocks on 118 different factors, each with its own weighting.
OSG has an A rating for Momentum and a B rating for Sentiment and Quality. It is ranked No. 2 out of 44 A-rated stocks Dispatch industry. Click here to see additional POWR ratings for OSG (Growth, Value, and Stability).
Hill International, Inc. (HIL)
HIL provides project and construction management and other consultancy services primarily for the building, transport, environment, energy and industrial markets. It primarily serves the United States federal, state, and local governments, other national governments, and the private sector.
On August 30, HIL announced that it had been selected by the Egyptian Ministry of Defense to provide project management and supervision consulting services for the International Center for Stem Cell Medicine and Research Center project. regenerative. The new project should benefit the company.
On August 16, HIL announced that it had entered into a definitive merger agreement with Global Infrastructure Solutions Inc., pursuant to which GISI would launch an all-cash tender offer to acquire 100% of the issued and outstanding shares of the company.
HIL CEO Raouf Ghali said, “By joining the GISI family of companies, Hill will be well positioned to continue to take advantage of industry opportunities while simultaneously improving the quality of our customer services through GISI’s focus on long-term success. .”
HIL’s total revenue increased 4.1% year-over-year to 105.73 million in the second quarter ended June 30. Its adjusted EBITDA increased by 70.9% compared to the value of the previous year to reach $6.53 million, while its adjusted net income improved 4,435.1% year over year to $3.21 million. The company’s earnings per common share rose 300% from its value a year ago at $0.02.
The stock has gained 103% over the past three months and 93.7% over the past month to close its last trading session at $3.37.
This promising outlook is reflected in HIL’s POWR ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. HIL is rated B in growth and quality. In category B Industrial – Services industry, it is ranked #4 out of 89 stocks.
To see additional POWR ratings for value, momentum, stability, and sentiment for HIL, Click here.
ARC Document Solutions, Inc. (BOW)
ARC provides digital printing and document services in the United States. The company offers managed print services, cloud-based document management software and other digital hosting services.
On July 28, ARC declared a quarterly dividend of $0.05 per share, payable to shareholders on November 30. This reflects the company’s cash-generating capacity.
ARC’s net sales increased 8.4% year over year to $74.56 million for the second quarter ended June 30. Its operating profit increased 32.9% year-over-year to $5.56 million, while adjusted net profit attributable to ARC was $3.69 million, representing 39.8% year-over-year growth. Adjusted EPS increased 33.3% from the prior year period to $0.08.
Analysts expect ARC’s FY2022 EPS to be $0.27, representing 22.7% year-over-year growth. The company’s revenue is expected to increase by 5% over the previous year to reach $285.70 million for the same period.
ARC has gained 5% over the past month to close its latest trading session at $2.95. It gained 1% intraday.
It’s no surprise that the ARC has an overall A rating, which equates to a Strong Buy in our POWR rating system. It also has an A rating for value, feeling and quality and a B for stability. It is ranked No. 2 out of 41 stocks in the B rating Outsourcing – Business Services industry.
Beyond what we’ve stated above, we’ve also assigned ARC ratings for growth and momentum. Get all ARC ratings here.
OSG shares were trading at $3.11 per share on Thursday afternoon, down $0.00 (0.00%). Year-to-date, OSG has gained 65.43%, versus a -16.40% rise in the benchmark S&P 500 over the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and her passion for writing made Kritika an analyst and financial journalist. She earned her Bachelor of Commerce degree and is currently pursuing the CFA program. With its fundamental approach, it aims to help investors identify untapped investment opportunities. After…
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