10 Oversold Global Stocks To Buy Right Now

5. TORM plc (NASDAQ:TRMD)

14-day RSI Score: 24.20

Number of Hedge Fund Investors In Q3 2024: 25

TORM plc (NASDAQ:TRMD) is a British firm that primarily transports petroleum products such as gasoline, kerosene, and jet fuel through water-based routes. The firm has had a tumultuous 2024 so far as its shares are down by 36.9% year-to-date. This has come on the back of several global disruptions, out of which sanctions against Russian oil and energy products are the ones that have made TORM plc (NASDAQ:TRMD) significantly transform its operations. The firm battled high costs in 2023 as it was forced to reroute its ships and European imports. 2024, which for the shipping industry has been characterized by hostilities in the Middle East, has seen shipping firms fend off attacks on their vessels. TORM plc (NASDAQ:TRMD) has been hit hard particularly due to its reliance on clean petroleum product exports from the Middle East. These have struggled due to political tensions in the region.

Another factor that has harmed TORM plc (NASDAQ:TRMD) this year is the Chinese economic slowdown. Here is what the firm shared during the Q3 2024 earnings call:

“A lot of talk on the oil market in recent months has been about China’s disappointing growth in oil consumption.

While the effect of the recent government stimulus package has yet to show in oil demand it is also important to point out that for the product tanker market, China’s market share is below 5%. However, China is important for us indirectly as China accounts for around 25% of global crude oil flows and hence has an impact on the crude tanker market. Please turn to Slide 7. The unusually large spread between product and crude tanker earnings that we saw earlier this year led to a cleanup of a number of VLCCs and Suezmaxes since the end of the second quarter. These accounted for 9% to 10% of the clean petroleum product ton-mile here in the third quarter, offsetting a large part of the incremental ton-miles. However, a seasonally improving crude tanker market is reducing incentives for crude cannibalization.”