We recently compiled a list of the 10 Oversold Global Stocks To Buy Right Now. In this article, we are going to take a look at where Silence Therapeutics plc (NASDAQ:SLN) stands against the other oversold global stocks.

‘There are decades where nothing happens, and there are weeks where decades happen” is apt when starting a piece about global stocks. The four weeks of November and the first two weeks of December have brought seismic shifts that have reworked the way investors expect the world to function for the next couple of years.

Brushing geopolitics aside, for Wall Street, the biggest event over this period was the 2024 US Presidential Election. A hotly contested battle, it saw President-elect Donald Trump emerge victorious. Trump’s effects on the markets were immediate as investors rushed to pile into sectors that they believed would benefit from the incoming administration’s focus on fewer regulations. Across the globe, the Chinese government also wondered about the impacts of the President-elect’s promised tariffs, while closer to home, governments in Europe wondered if they would have to fend off a glut of Chinese goods that might head their way if America constrained China’s ability to export it with cheap products.

Starting from the stock market, two sectors were notable for their performance once the election’s outcome was certain. These two sectors are the banking sector and energy. The S&P’s bank stock index surged by a whopping 13.8% after the election while energy stocks added 4%. In contrast, the benchmark index jumped by 3.8% to confirm that investors were bullish about certain sectors of the economy.

Since this is a piece about oversold global stocks, it’s important to discuss in detail how the world has responded to Trump’s win instead of analyzing its effects on domestic US stock markets. One of the President-elect’s biggest campaign promises is to enact tariffs against China. In a statement made on his social media platform after he won the election, Trump linked the Chinese tariffs with the deadly drug fentanyl making its way to America’s streets. He outlined that “On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States.” Trump added that the tariff would remain in place until “Drugs, in particular Fentanyl” stopped entering the US.

In response, Chinese leaders, who are already struggling with a weak economy are considering whether to increase economic stimulus to battle potential American tariffs. In a meeting top Communist Party officials indicated that they would undertake China’s first monetary policy loosening in 14 years, as they shared that a “more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments.” The key concern for policymakers in China surrounds their aim of growing the Chinese economy by 5% in 2025. Should President-elect Trump’s tariffs materialize, then America’s imports from China will fall and lead to either lower Chinese economic output or a diversion of its exports to alternate countries. The latter option will be tricky due to the US’ status as the world’s largest economy.

While Trump’s victory was a boon for US stocks, European stocks displayed mixed performance. Tariffs also drove investor sentiment for European equities, whether they were from the EU or from the UK. The Euro 600 stock index added as much as 1.2% after Trump’s victory was announced, but ended up being down 1.26% by the end of the week following the election. European investors were jittery about the President-elect’s promise of 10% tariffs for all imports.

The British FTSE 100 also gained 1% after Trump’s victory but ended up losing momentum and ended in the red soon afterward. Economists believe that as the tariffs could potentially increase US prices,  the Federal Reserve can keep rates higher and lead to global currencies falling. Since the election, the Euro and the Pound have lost 3.96% and 2.3% to the US dollar on the back of investor expectations of a stronger dollar in the near-term future.

Before we get to our list of the best oversold global stocks to buy, a brief look at some global stocks that surged following Trump’s win is also important. One stock that surged by 27% is a Swiss mining company with a significant presence in Ukraine. Investors bet on the shares with the hope that a Trump victory would end the conflict in Ukraine. Britain’s largest defense contractor, BAE, surged by 8% as investors tried to get an upper hand on potentially larger defense orders for the firm if the US cuts down NATO funding and asks Europe to contribute more.

Our Methodology

To make our list of the most oversold global stocks to buy, we ranked the 40 most valuable ex-US stocks with a 14-day RSI reading of 30 or lower by the number of hedge funds that had bought the shares during Q3 2024. Out of these, we picked the stocks with the highest number of hedge fund investors.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Silence Therapeutics plc (NASDAQ:SLN)

14-day RSI Score: 26.93

Number of Hedge Fund Investors In Q3 2024: 25

Silence Therapeutics plc (NASDAQ:SLN) is a British biotechnology company. The firm develops genetically engineered medicines to target a variety of ailments such as blood cancer, liver diseases, kidney problems, and others. Silence Therapeutics plc (NASDAQ:SLN)’s shares have lost a whopping 60% year-to-date, with the losses driven by a sizable 60% dip in November prior to which the stock had lost 5.4% year-to-date. The sell-off started after Silence Therapeutics plc (NASDAQ:SLN)’s third-quarter results which saw its quarterly revenue drop by 59%, R&D expenses and operating expenses jump by 72% and 10.7%, and the net loss widen by 230% in an all-round set of weak results.  The share price drop came even though while its shares were dropping, Silence Therapeutics plc (NASDAQ:SLN)’s data for its zerlasiran drug led to an up to 90% reduction in lipoproteins that are responsible for heart disease. Looking ahead, zerlasiran making it to phase two, and the firm’s blood cancer drug advancing in the trial phases can drive the stock forward.

Overall SLN ranks 6th on our list of the oversold global stocks to buy now. While we acknowledge the potential of SLN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SLN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.