Genco Shipping & Trading Limited (NYSE: GNK) has seen its shares pounded 87% since 2015 and currently has a market cap of just $350 million. Genco is a leading low-cost operator, decreasing its daily vessel operating costs by nearly 12% from 2014. The company completed a $125 million capital raise in January, giving it flexibility as industry fundamentals recover.

The company nearly halved its loss to just $3.85 per share in the fourth quarter from a loss of $7.30 per share in the first quarter and is expected to reduce losses to $0.62 per share when it reports first-quarter 2017 earnings. Genco plans on completing its planned sale of 10 older ships by the end of the quarter to reduce costs further and could surprise on the upside this year. I have a $13.65 price target on the shares for a 28% gain based on an enterprise value of four times sales.