The US stock market’s relief bounce may be showing signs of fatigue, but that doesn’t mean there aren’t opportunities to be found elsewhere.
Today, we’re turning our attention to Europe, where several established companies are basking in the warm glow of analyst optimism. These five picks boast “buy” ratings of 90% or higher, suggesting strong confidence in their future growth potential.
These companies, with their high buy ratings and promising outlooks, deserve closer examination for investors seeking opportunities in the European market. Let’s take a look at each stock individually:
1. Infineon Technologies
Infineon Technologies (OTC:) designs, develops, manufactures and markets semiconductors. It was founded in 1999 and is headquartered in Neubiberg (Germany).
A former subsidiary of the technology group Siemens, it is considered the second-largest European chip manufacturer.
Its dividend yield is 1.17%. Its quarterly results are due on May 7.
To highlight its ability to outperform the industry and deliver sustained growth driven by the increasing penetration of electric vehicles and the importance of energy savings.
Among its ratings, 89% are buy, 11% hold and 0% sell. In the last year, its shares have fallen by -5.88%. Its fair value is $43.51 and the market gives it potential at $44.
2. Logista
Logista (BME:) focuses on developing an integrated logistics process that connects manufacturers with points of sale and end customers. It offers full transportation, warehousing, express parcel delivery, and courier services.
Its origins date back to the Altadis division, from which it was spun off in 1999. Its headquarters are in Madrid (Spain).
The dividend yield is around 6%. On May 8, it presented its figures for the quarter.
The good performance of the business is generating an upward revision in its earnings estimates for 2024.
The stability in tobacco volumes distributed gives the company a defensive character together with its interesting dividend.
Among its ratings, 100% are buy. The market gives it a potential at 30.57 euros.
3. Prosus
Prosus (OTC:), formerly known as Myriad International Holdings, is a group based in the Netherlands. The Company is organized in several business areas: Payments and Fintech, Food Delivery and Travel.
We will know its quarterly numbers on June 21. It is one of the largest tech companies in Europe with a capitalization exceeding €77 billion and is second only to Hexagon, ASML (ASML (AS:) and SAP (NYSE:).
It is capitalizing on the rise of Asian video game giant Tendent, 30% controlled by Prosus. Tencent’s (HK:) May 21 launch of the long-awaited mobile version of Dungeon & Fighter implies rising expectations of a gaming rebound in the second quarter of the year.
Of their ratings, 90% are buy, 10% hold and 0% sell.
The market sees plenty of potential, specifically at $42.84, although others are even more optimistic, such as JP Morgan (NYSE:), which sees it at $46, and Goldman Sachs (NYSE:) at $48.90.
4. Acerinox
Acerinox (BME:) (OTC:) manufactures, processes, and markets stainless steel products worldwide. It was incorporated in 1970 and is headquartered in Madrid, Spain.
On July 19, it pays a dividend of 0.2511 euros per share and to receive it you must own shares before July 17. The dividend yield is 6%.
Expectations of future interest rate cuts are an asset in its favor since steel is a cyclical sector and benefits from an economic recovery.
Among its ratings, 90% are buy, 10% are hold and 0% are sell. The market consensus sees it at 13.60 euros.
5. Unicredit)
UniCredit SpA ADR (OTC:) is an Italian banking company. In 1998 Unicredit (BIT:) was created from the merger of two banking groups located in northern Italy, Credito Italiano and Unicredito.
From this union Unicredito Italiano was born, which became one of the banks with the largest assets in the country. It is headquartered in Milan (Italy).
Its dividend yield is 5.10%.
On May 7 we will see its quarterly accounts. For 2024 it expects an increase in EPS of 25.6%. It closed 2023 with a record net profit of €8,614 million, an increase of 53.8% over the previous year’s result.
While last year its shares rose 85.10%, this year it is not resting and is continuing its upward rally. The good performance of its business and its attractive dividend are assets that the market likes.
Of its ratings, 92% are buy, 8% hold and 0% sell.
The market consensus gives it potential at 39 euros. The most optimistic ones go further, such as AlphaValue, which sees it at 42.5 euros.
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Disclaimer: The author does not own any of these shares. This content, which is prepared for purely educational purposes, cannot be considered as investment advice.
