Trading Desk
“The Week”: The Midterm Elections Are Approaching
-
François Bloch
Experte
Swatch finally flashing green on the Swiss stock exchange – STMicroelectronics seeing the turbo switched on – Amgen described as a Wall Street high-flyer
Switzerland
The signs are pointing to green for Swatch (Ticker: UHR SW): up 7.90% since the turn of the year. Step by step, the financial metrics of the CHF 9.24 billion stock continue to improve over time. According to the underlying models, cash flow per share could improve from CHF 11.86 to CHF 17.11 between 2023 and 2028, at a share price of CHF 181.55 (closing price: Friday evening). An annual reinvestment of the dividend into new shares would be worth considering.
Trading strategy: Reload
Shares of SPI index stock Inficon (Ticker: IFCN SW) are moving up rapidly: +75.10% since the turn of the year. Book value per share could rise from USD 13.91 to USD 31 between 2023 and 2028. The dividend payout could jump from USD 2.264 to USD 4.264 over the same period, which could sustainably improve returns for years to come, with a reinvestment of the dividend into new shares worth considering.
Trading strategy: Reload
Thanks to a significantly improved focus on its core business, packaging specialist SIG Group (Ticker: SIGN SW) is once again showing its best side, after the stock had experienced a veritable price slump. Earnings per share could improve from EUR 0.64 to EUR 0.8361 between 2023 and 2028, which could improve the recovery trend of the stock considerably over the longer term. The EBIT margin of 16.73% in 2028 would be a positive note.
Trading strategy: Reload
Investors are once again gaining confidence in VZ Holding (Ticker: VZN SW), a development attributed to the very strong leadership of the current CEO and crowned with great success so far. Operating income (EBIT) could rise from CHF 218.9 million to CHF 395.5 million between 2023 and 2028, with an annual reinvestment of the dividend into new shares worth considering, provided book value increases each year.
Trading strategy: Reload
The express train of Sandoz (Ticker: SNDZ SW) has really picked up speed in recent days: up 39.45% since the turn of the year. The background would be a marked improvement in the expected book value per share from USD 20.12 to USD 29.07 between 2024 and 2028, which would make the share price development of recent months at this USD 42.31 billion stock considerably more comprehensible.
Trading strategy: Reload
Full speed ahead once again for ABB (Ticker: ABBN SW): up 19.35% since the turn of the year. According to the quantitative models, operating income could improve from USD 4.871 billion to a new record high of USD 9.893 billion between 2023 and 2028, which would be remarkable given the current market environment. The growing dividend payout per share of USD 1.013 to USD 1.4138 could be reinvested annually over this period.
Trading strategy: Reload
Zurich-based asset manager Vontobel (Ticker: VONN SW) has been impressive for some time: up 40.28% since the turn of the year. An improvement in book value per share is projected for the period between 2023 and 2028, from CHF 37.85 to CHF 52.48. With an expected return on equity of 13.26% by 2028, a position would be worth considering.
Trading strategy: Reload
Europe
The turbo has now been switched on for shares of French chipmaker STMicroelectronics (Ticker: STM FP): since the start of the year, the stock has risen 86.63%. According to the latest analyses, book value per share could improve from EUR 17.72 to EUR 26.05 between 2023 and 2028, which would be highly significant. Dividend per share could also jump from EUR 0.24 to EUR 0.3862 over the same period, which would make an investment considerably more attractive going forward.
Trading strategy: Reload
Shares of Spanish energy specialist Iberdrola (Ticker: IBE SM) are considered very attractive. Dividend per share could rise from EUR 0.501 to EUR 0.835 between 2023 and 2028. With a record EBIT margin of 25.57% by 2028 and an expected dividend yield of 3.71% in 2028, the overall picture would support a position.
Trading strategy: Reload
Shares of Italian energy stock Eni (Ticker: ENI IM) continue to move steadily upward: up 68.12% since the turn of the year. Book value per share could grow from EUR 16.09 to EUR 19.75 between 2023 and 2028. The EBIT margin could reach a new record of 14.11% in 2028, which would be strong for the company in a historical context.
Trading strategy: Reload
US/CAN
On the speculative side, this stock could be very exciting: the pharma stock Regeneron (Ticker: REGN US) is being presented for the first time and is attributed major potential. Book value per share could improve from USD 241.4 to USD 443.3 between 2023 and 2028, which would be enormous for this USD 93.11 billion stock.
Trading strategy: Reload
Ambitious investors are backing NYSE top stock United Therapeutics (Ticker: UTHR US). At this USD 25.68 billion top-class stock, book value per share could increase from USD 127.2 to USD 240.2 between 2023 and 2028. With an EBIT margin of 48.13% in 2028, the future would look reassuring.
Trading strategy: Reload
Long-standing top favorite Motorola Solutions (Ticker: MSI US) presents a very strong picture on the stock market. Book value per share could grow from USD 4.207 to USD 40.39 between 2023 and 2028, which would be extraordinary.
Trading strategy: Reload
Wall Street high-flyer Amgen (Ticker: AMGN US) is currently considered strong. Operating income could rise from USD 13.399 billion to USD 18.560 billion between 2023 and 2028, which would underpin the company’s successful strategic direction. The dividend is also convincing at this growth-oriented USD 252 billion stock: the expected dividend yield is 2.29% in 2027.
Trading strategy: Reload
Shares of insurance stock Chubb Limited (Ticker: CB US) are described as a top-class gem. Book value per share at this USD 139 billion stock could rise from USD 146.88 to USD 244.4 between 2023 and 2028. Earnings per share could increase from USD 21.8 to USD 31.94 over the same period, with the overall picture appearing.
Trading strategy: Reload
Yours sincerely,
François Bloch
____
Investment idea of the week
It is important to us to provide you with a concrete investment idea. This week, François Bloch has chosen to implement this idea with ABB, Inficon, Sandoz and Swatch were issued.
An Autocallable Multi-Barrier Reverse Convertible with the ISIN CH1602320652 based on the four stocks stands out as a stabilizer in any portfolio, offering a 14.79% coupon, a barrier at 59.00%, and a 12-month term.
____
No «Bloch live» This Week
«Bloch live» is taking a break this week. Join us again next week for a lively discussion between two experts, engaging topics and candid opinions.
We look forward to seeing you next week!
___
Disclaimer
Lucht Probst Associates AG and François Bloch do not receive any payments or commissions from the products mentioned.
