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The macroeconomic situation that is battering the international scene has not left anyone indifferent, much less the main world markets. The stock markets no longer quote inflation, which is increasingly rampant, but rather, in this context, what is beginning to be discounted is a recession scenario. And, in the face of all this, the main indices continue to be submerged in bearish territory , with annual losses of 18% in the case of the S&P 500 and 19% in that of the EuroStoxx 50.

Among so much mud, little clarity can be glimpsed. However, even from the most swampy situation a new opportunity arises. Thus, despite the widespread crashes, more than a third of the securities at European level leave attractive investment opportunities. This can be verified through the PER ratio (times that the profit is included in the share price), since between 30% and 45% of European firms are bought below 10 times with the expected profits. this year.

The British stock market – down 2.65% in the year, the smallest decline in the entire Old Continent – heads the list by number of companies, with 31% of those it gathers falling below this level. Seven of his companies are even bought at 5 times or less. The cheapest company in the entire index is Harbor Energy, with a PER of 2 times estimated for this year with which, in addition, it offers an expected return of 50% . The other values ​​with below 5 times for this year are Glencore, BP, Shell, Barclays and Rio Tinto, which are currently bought at 4 times the first two and 5 times the rest.

However, despite the fact that the English energy company leads its national index, it is not the cheapest value in the entire continent. This position is held by the steel company ArcelorMittal , which is bought even with a multiple of less than 2 times in 2022. Its profitability expectations are close to 55% . The steel company, which shows a drop of more than 20% in the year, is not only attractive for this ratio, but also boasts an interesting potential of 76%, according to the consensus of analysts gathered by FactSet and, in addition, it has improved its profit forecasts for this year with respect to those presented at the beginning of the year.

the automotive industry
Within the French selective -38% of its securities are bought for less than 10 times its estimated profit for this year-, the automobile sector registers two of its main firms among the cheapest securities in the entire index. After Arcelor, Stellantis is the most attractive in relation to this ratio, as it offers a multiplier close to 3 times by 2022. Renault ‘s is also below PER 5, and is bought a little more than 4 times, although it is the fourth cheapest company in the CAC 40, surpassed by TotalEnergies, which trades at a PER of 4 times for this year.

The automobile industry continues to find the best bargains and leads the top 3 cheapest firms in the German Dax -also 38% of its values ​​achieve PER for this 2022 below 10 times-. Volkswagen leads this index and is currently bought around 4 times in 2022. Porsche follows, also around 4 times this year; and Bayerische is bought about 5 times. All of them have managed to become cheaper since the beginning of the year and present potentials that leave their prices 40%, 62% and 70% respectively.

The Ibex 35, for its part, presents ten of its companies below this ratio. The list is led by the already mentioned Arcelor, followed by Acerinox and Repsol with a PER for 2022 around 3 times in both cases, closing the top 3. The Spanish banking sector registers three of its entities among the cheapest firms in the banking club. The 35: Santander, BBVA and Sabadell, which are bought respectively at 5.6 and 7 times this year.

The Italian stock market has the highest percentage of companies from the Old Continent below PER 10, with 45% of its firms below this ratio. The list is led by Stellantis with a multiplier of 3 times and the highest dividend yield of the EuroStoxx , of 10.2% -it is also established as the cheapest of the 50 firms that the European index groups-. To all this is added the profitability expectations that the carmaker raises to 37 %. Eni and Exor close the podium of the cheapest in Italy with a PER around 4 times in both firms.

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