We recently published a list of the 10 Cheap Rising Stocks to Buy Right Now. In this article, we will look at where TORM plc (NASDAQ:TRMD) stands against other cheap rising stocks in which to invest.
On May 2, US stocks notched their longest winning streak since 2004 as the United States and China signaled a willingness to have trade talks. The broad market index rose 1.47%, which helped it erase the losses since the Trump administration announced reciprocal tariffs on April 2.
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Trump told Time magazine on April 22 that his administration was engaged with China on striking a tariff deal. The US president also said he expects announcements on many other trade deals to be made over the next three to four weeks.
During an interview with NBC on May 2, the US President stated that tariffs on Chinese imports will eventually be lowered:
At some point, I’m going to lower them because otherwise, you could never do business with them. They want to do business very much … their economy is collapsing.”
Jay Hatfield, founder and chief investment officer of InfraCap, believes the worst of the uncertainty around tariffs is over. He shared the following remarks while talking to CNBC:
“The confusion about whether there’s really talks going on with China or not took some steam out of the market. Our view is that we’ve reached peak tariff tantrum and so it’s likely to be more positive than negative.”
A spokesperson for China’s Commerce Ministry has said the country is currently assessing proposals shared by Washington to begin trade negotiations. Analysts view the statement as a subtle shift in tone from Beijing that could potentially open the door for talks on tariffs.
The stock market has also received a boost from the latest jobs data shared by the Bureau of Labor Statistics. The American economy added 177,000 new jobs in April. While this was slightly down from 185,000 jobs in March, the gain was still stronger than the average pace of monthly job growth in the last three months, which reflected the resilience of the US job market.
Sailors on the main deck of an oil tanker, watching as oil is being loaded.
Our Methodology
For this article, we sifted through screeners to identify stocks with returns of 10% or more over the past 30 days, a forward P/E ratio of less than 15, a trailing P/E ratio of less than 15, and a P/B ratio of under 1. From there, we picked the 10 stocks with the lowest forward P/E ratio and ranked them in descending order. All data is as of the close of business on May 5, 2025.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
TORM plc (NASDAQ:TRMD)
30-day returns: 22.48%
Forward P/E ratio: 6.36
TORM plc (NASDAQ:TRMD) is a shipping company that operates a fleet of product tankers. It is one of the world’s leading carriers of refined oil products.
Last year, the company expanded its fleet through the acquisition of eight second-hand MR vessels for $340 million, with a cash consideration of $238 million and the issuance of approximately 2.65 million shares. These vessels were built in 2014-2015 at the Tier 1-Korean yard Hyundai Mipo Dockyard. Six of these vessels are fitted with scrubbers.
Despite ongoing geopolitical uncertainty, the company delivered first-quarter results in line with expectations, even though the figures are down year-over-year. TORM plc (NASDAQ:TRMD) generated time charter equivalent earnings (TCE) of $214 million, compared to $330.7 million during the same period last year. Net profit for the period stood at $62.9 million, down from $209.2 million in Q1 FY24.
The decline was driven by significantly lower freight rates compared to the prior year. However, they were in line with the levels observed in Q4 2024. Trade volumes were affected by the Red Sea disruption at the beginning of 2025. However, product tanker ton-miles started to rebound in March, which is an encouraging sign.
TORM plc (NASDAQ:TRMD)’s board of directors approved an interim dividend of $0.40 for the first quarter, payable on June 4. The distribution is equivalent to 62% of the net profit, in line with the company’s Distribution Policy.
TORM plc (NASDAQ:TRMD) is among the cheap rising stocks to buy right with, given its handsome returns over the past month and a low forward P/E ratio.
Overall, TRMD ranks 4th among the 10 Cheap Rising Stocks to Buy Right Now. While we acknowledge the potential of TRMD 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TRMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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