“The Week”: Signs of Recovery

• 

  François Bloch
  Experte

Switzerland

Shares of the Basel-based pharmaceutical giant Roche (ticker symbol: ROP SW) have surged on the Swiss Stock Exchange: +14.44% since the start of the year. Potential progress in the development of cancer therapies currently in Phase III clinical trials is seen as the driving force behind this rise. According to the underlying models, operating profit (EBIT) could rise from CHF 19.240 billion to CHF 25.991 billion between 2023 and 2028.
Trading Strategy: Reload

The financial statements of the Basel-based contract manufacturer Lonza (ticker symbol: LONN SW) have risen 10.12% since the start of the year. Earnings per share could rise from CHF 8.88 to CHF 24.2 between 2023 and 2028. The dividend payout could increase from CHF 4.00 to CHF 7.264 over the same period, in which case reinvesting the dividend in new shares would be a viable option.
Trading Strategy: Reload

Thanks to a significantly improved overall outlook, shares of Novartis (ticker symbol: NOVN SW) are once again gaining confidence among investors. Operating profit (EBIT) could rise from USD 16.372 billion to USD 25.642 billion between 2023 and 2028, making it advisable to reinvest the dividend annually in new shares.
Trading Strategy: Reload

The securities of the Zurich-based private bank Vontobel (ticker symbol: VONN SW) have gained even more momentum in recent days: +39.96% since the start of the year. This is reportedly due to an improvement in the expected book value per share between 2023 and 2028, from CHF 37.85 to CHF 51.06, which would make the stock’s price performance over the past few months—for a stock with a market capitalization of CHF 5.05 billion – seem more understandable. The expected dividend yield for 2027 would be 3.85%. Given the future outlook, it would make sense to reinvest the dividend annually in new shares.
Trading Strategy: Reload

For SPI Index constituents Bachem (ticker symbol: BANB SW), the positive trend continues: +29.22% since the start of the year. According to quantitative models, operating profit (EBIT) could rise from CHF 129.4 million to a new record high of CHF 335.2 million between 2023 and 2028. The growing dividend payout per share – from CHF 0.8 to CHF 1.249 – could be reinvested annually over this period.
Trading Strategy: Reload

Sandoz (Ticker symbol: SNDZ SW) has been performing well for some time now: +27.66% since the start of the year. For the period between 2023 and 2028, the company forecasts an improvement in operating income from USD 1.488 billion to USD 2.968 billion. The dividend per share could rise from USD 0.5127 to USD 1.64 over the same period, making annual reinvestment in new shares a viable option.
Trading Strategy: Reload

Europe

Regarding the documents from the Belgian cancer specialist Argenx (ticker symbol: ARGX BB), a breakthrough has been achieved: Since the start of the year, the stock has risen by 25.84%. According to current analyses, the book value per share could increase from EUR 69.22 to EUR 234.1 between 2023 and 2028. Cash flow per share could also surge from EUR -7.352 to EUR 51.26, which would make an investment in the company seem more sensible for the future.
Trading Strategy: Reload

The long-term stock price performance of the Zug-based commodities giant Glencore (ticker symbol: GLEN LN) can be described as exceptional: Despite a 46.80% increase since the start of the year, the stock continues to be viewed as promising. Book value per share could rise from USD 3.566 to USD 4.031 between 2023 and 2028. The dividend could increase from USD 0.13 to USD 0.3045 over the same period, which would suggest increasing one’s position.
Trading Strategy: Reload

The French cancer drug specialist Ipsen (ticker symbol: IPN FP) appears to be exceptionally well-positioned. The book value per share could rise from EUR 45.64 to EUR 84.89 between 2023 and 2028. The expected EBIT margin for 2028 would be 30.87%. Reinvesting the dividend in new shares would also be a viable option, as this strategy has proven very successful for this stock in the past.
Trading Strategy: Reload

Shares of the Swedish pharmaceutical company Swedish Orphan Biovitrum (ticker symbol: SOBI SS) are on a steady upward trend: The stock, with a market capitalization of EUR 14.45 billion, is poised to reach new record highs on the stock market. Book value per share could rise from EUR 95.6 to EUR 179.2 between 2023 and 2028. The EBIT margin could reach a new record of 29.5% in 2028, which, in a historical context, would be considered a strong figure for the company.
Trading Strategy: Reload

Shares of the Belgian baked goods specialist Lotus Bakeries (ticker symbol: LOTB BB) are considered attractive, with the upward trend expected to continue through the end of 2028. The book value per share of this stock, which has a market capitalization of EUR 10.42 billion, could rise significantly from EUR 808.4 to EUR 1,588 between 2023 and 2028.
Trading Strategy: Reload

US/CAN

Conservative investors are betting on copper’s value Freeport-McMoRan (ticker symbol: FCX US). For this giant in the commodity exploration sector, operating profit (EBIT) could rise from $6.225 billion to $15.640 billion between 2023 and 2028. The EBIT margin could reach a peak of 42.4% in 2028.
Trading Strategy: Reload

The stocks of Illumina (ticker symbol: ILMN US) are performing strongly on the stock market. The company projects an increase in operating income (EBIT) from USD 247 million to USD 1.388 billion between 2023 and 2028. The return on equity in 2028 would be 26.46%, which would be considered a very good figure for this sector.
Trading Strategy: Reload

Merck (ticker symbol: MRK US) is considered a new high-flyer in the cancer sector. Book value per share could rise from $14.84 to $32.32 between 2023 and 2028, which would reinforce the company’s strategic direction. A record dividend payout is also expected in 2028.
Trading Strategy: Reload

The securities of CF Industries (ticker symbol: CF US) are considered particularly promising. The book value per share of this stock, which has a market capitalization of USD 19.61 billion, could rise from USD 29.58 to USD 51.77 between 2023 and 2028. With an EBIT margin of 27.68% in 2028, the overall picture would look promising – a stock with long-term potential.
Trading Strategy: Reload

Yours sincerely,
François Bloch

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Disclaimer: Lucht Probst Associates AG and François Bloch receive neither payments nor commissions from the products mentioned.