10 Best Marine Shipping Stocks to Buy According to Analysts

2. TORM plc (NASDAQ:TRMD

Upside Potential: 78.38%

Number of Hedge Fund Investors: 25

Stock Price as of December 24: $19.06

TORM plc (NASDAQ:TRMD) is a leading international marine shipping company specializing in the transportation of petroleum products. The company operates a fleet of approximately 90 product tanker vessels that are configured to move energy and clean petroleum products from refineries.

TORM plc (NASDAQ:TRMD) has been focusing on renewing and expanding its fleet to enhance operational efficiency and capitalize on market opportunities. The company recently acquired eight second-hand MR vessels for $340 million. These vessels, built between 2014 and 2015 at Hyundai Mipo Dockyard, are part of the company’s ongoing program to replenish its fleet. As of Q3, six of these vessels have been delivered, with the remaining two expected to join the fleet by the end of the year.

TORM plc (NASDAQ:TRMD) is leveraging the current market dynamics driven by geopolitical tensions and the reshaping of global trade routes. The company has observed a shift in trade patterns towards longer distances, particularly due to the sanctions against Russia and the Houthi attacks in the Middle East. These factors have contributed to longer voyages and higher ton-mile demand, contributing to a tight supply-demand balance in the product tanker market. The company is well-positioned to benefit from these trends, as its fleet is optimized for long-haul trade.

TORM plc (NASDAQ:TRMD) is also focused on maintaining its strong cash position and a secure debt maturity profile. The company has no major capital expenditure commitments, providing it with the financial flexibility to seize new opportunities as they arise. Furthermore, the company is also committed to sustainability and innovation, ensuring that its operations align with evolving industry standards and environmental regulations.