“The Week”: Strong past trading week

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  François Bloch
  Experte

Switzerland

The securities of Banque Cantonale Vaudoise (ticker symbol: BCVN SW) have once again risen sharply, gaining 33.86 % since the turn of the year. The book value per share is expected to increase from CHF 43.24 to CHF 48.90 in the period from 2022 to 2027. With an expected dividend yield of 3.52% in 2027, this overall picture could prove to be extremely attractive for investors in the low interest rate environment in Switzerland. The decisive factor here would be that the dividends would be reinvested annually in new shares.
Trading strategy: Reloading

The shares of the former ABB subsidiary Accelleron (ticker symbol: ACLN SW) have taken off on the Swiss stock exchange with an increase of 30.14 % since the beginning of the year. The operating result (EBIT) is expected to increase from USD 141.3 million to USD 428.4 million in the period from 2023 to 2028. At the same time, the return on equity could increase from 35.44% to 49.82% in the same period.
Trading strategy: Reloading

The temporary weakness of the VAT Group (ticker symbol: VACN SW) on the Swiss stock exchange was short-lived. The share price rose by 12.34% within seven days. The operating result (EBIT) is expected to increase from CHF 228.6 million to CHF 566.67 million in the period from 2023 to 2028. This would underline the sustainability of the corporate strategy. It is advisable to reinvest the dividends in new shares.
Trading strategy: Reloading

The shares of Sandoz (ticker symbol: SNDZ SW) are performing excellently. The operating result (EBIT) is expected to increase from USD 1.488 billion to USD 2.985 billion between 2023 and 2028. This is a very promising sign for investors. It is interesting to note that sales could grow much more moderately in the same period, rising from USD 9.647 billion to USD 13.256 billion. Accordingly, the dividend payout could be restrained and should not be seen as a decisive factor for the investment thesis.
Trading strategy: Reloading

The shares of the duty-free giant Avolta (ticker symbol: AVOL SW) are on course for a new record, having risen by 10.73% since the turn of the year. The development of earnings per share is particularly noteworthy: these are expected to rise from CHF 0.70 to CHF 1.403 in the period from 2023 to 2028. It would be advisable to consistently reinvest the dividends in new shares every year.
Trading strategy: Reloading

The shares of the Swatch (tickere symbol: UHR SW) are increasingly being targeted by foreign financial investors. This could also be reflected in the expected development of the operating result (EBIT). This is likely to rise from CHF 304 million to CHF 613.6 million in the period between 2024 and 2028. This would reduce the price/earnings ratio to below 23 by 2028.
Trading strategy: Reloading

The share of Allreal (ticker symbol: ALLN SW) could be worthwhile for long-term investors. The operating result (EBIT) is expected to increase from CHF 180.6 million to CHF 225.9 million between 2023 and 2028. This would be classified as solid and stable growth. It would make sense to reinvest the dividends in new shares.
Trading strategy: Reloading

Europe

The Dutch technology value ASM International (ticker symbol: ASM NA) is excellently positioned. The book value per share is expected to increase from EUR 65.58 to EUR 133.50 in the period between 2023 and 2028. The expected EBIT margin for 2028 is likely to be 31.78%, which is very strong by historical standards. It would make sense to reinvest the dividends in new shares, as this strategy has proven successful in the past.
Trading strategy: Reloading

The shares of the German chip manufacturer Infineon (ticker symbol: IFX GY) are attractive. The book value per share is expected to increase from EUR 13.05 to EUR 17.66 between 2023 and 2028. With an expected EBIT margin of 21.55% in 2028, the overall picture would be solid, allowing investors to set the right priorities. The expected dividend yield in 2028 would probably be around 1.04%.
Trading strategy: Reloading

Investors are likely to enjoy the shares of the French company Legrand (ticker symbol: LR FP). An increase in the book value per share from EUR 25.19 to EUR 37.38 is forecast for the period between 2023 and 2028. An EBIT margin of 19.05% is also expected for the Group in 2028 with sales of around EUR 38.9 billion. The expected dividend yield in 2028 is likely to be around 2.11%.
Trading strategy: Reloading

The shares of the French banking giant BNP Paribas (ticker symbol: BNP FP) are continuing their steady upward trend, moving towards new record highs on the stock exchange. The market value of the company, which is worth around EUR 99.37 billion, underlines the current strong development. In the period from 2022 to 2027, the dividend could rise from EUR 4.60 to EUR 7.06, while the EBIT margin would reach a new record level of 43.197% in 2028. This would be exceptionally strong by historical standards.
Trading strategy: Reloading

US/CAN

The shares of the Austrian real estate specialist Strabag (ticker symbol: STR AT) appear promising, as there are high hopes that the positive trend will continue until the end of 2028. The operating result (EBIT) is expected to increase significantly from EUR 706.4 million to EUR 1.243 billion in the period from 2023 to 2028.
Trading strategy: Reloading

Future-oriented investors rely on Onto Innovation (ticker symbol: ONTO US). With this rather unknown technology value, the operating result (EBIT) could improve significantly from USD 195 million to USD 559.8 million between 2023 and 2028. In addition, the EBIT margin could reach a peak value of 33.79% in 2028.
Trading strategy: Reloading

I’m currently extremely impressed by the rather unknown US title Teradyne (ticker symbol: TER US), which is making a very strong showing on the stock market. The operating result (EBIT) could rise from USD 547.3 million to USD 1.922 billion between 2023 and 2028, which would represent an exceptionally strong performance.
Trading strategy: Reloading

The papers of Entegris (ticker symbol: ENTG US) are currently soaring. The operating result (EBIT) could increase from USD 769.7 million to USD 1.005 billion between 2023 and 2028. The return on equity is expected to be 25.66% in 2028.
Trading strategy: Reloading

I would like to introduce Applied Materials (ticker symbol: AMAT US) once again. The operating result (EBIT) is expected to rise from USD 7.719 billion to USD 13.961 billion in the period from 2023 to 2028, underlining the strength of this technology asset. The EBIT margin could reach 33.7% by 2028. This would represent a very solid level for the chip component manufacturer. In addition, the book value per share could rise by 122% in the same period.
Trading strategy: Reloading

In my opinion, the shares of KLA Corporation (ticker symbol: KLAC US) are in a class of their own. The operating result (EBIT) could rise from USD 4.302 billion to USD 8.085 billion in the period from 2023 to 2028, underlining the strong development of this company, which is worth around USD 228 billion. With a possible EBIT margin of 45.03% in 2028, the business model would be extremely profitable. Overall, this would therefore be a potentially very strong stock with long-term potential.
Trading strategy: Reloading

Yours sincerely,
François Bloch

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Investment idea of the week

It is important to us to provide you with a concrete investment idea. This week, François Bloch has opted for an implementation with ABB, Kühne + Nagel and Swatch pronounced.

A Barrier Reverse Convertible with ISIN CH1530882088 on the three shares offers an attractive coupon of 12.18%, with a barrier at 59.00% and a term of 12 months as a stabilizer in any portfolio.

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Disclaimer
payoff Media AG and François Bloch receive neither payments nor commissions from the products mentioned.