“The Week”: Turbulence

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  François Bloch
  Experte

Switzerland

At Basler Novartis (ticker symbol: NOVN SW), things are finally looking up again on the Swiss Stock Exchange: Since the start of the year, the stock has risen by an impressive 15.22%. This positive trend is being driven by successful trials of novel cancer drugs that could expand treatment options. Operating income (EBIT) is expected to rise from USD 16.372 to USD 25.312 billion between 2023 and 2028.
Trading strategy: Reloading

Due to the significantly improved margin situation, shares of Avolta (ticker symbol: AVOL SW) are regaining investor confidence. Operating profit (EBIT) could rise from CHF 817.6 million to CHF 1.177 billion between 2023 and 2028. However, latecomers should have a longer investment horizon, as the company’s full success on the stock market may take some time to materialize.
Trading strategy: Reloading

The Stock Market Express of Julius Baer (ticker symbol: BAER SW) has picked up speed again in recent days and has already gained 9.23% since the start of the year. The reason for this is likely the expected improvement in operating profit (EBIT) between 2023 and 2028, from CHF 1.182 billion to CHF 1.607 billion. This would explain the strong price performance of the past few months for this stock, which has a market capitalization of CHF 13.97 billion. Given the excellent outlook, it might also be worthwhile to consistently reinvest dividends in additional shares.
Trading strategy: Reloading

Shares of Swisscom (ticker symbol: SCMN SW) are gaining momentum on the stock market. This is in line with the company’s improved financial position. Operating profit (EBIT) could rise from CHF 2.205 billion to CHF 2.407 billion between 2023 and 2028, potentially laying the foundation for stable long-term performance of the stock.
Trading strategy: Reloading

Currently, Vontobel (ticker symbol: VONN SW) is doing just about everything right. The book value could grow from CHF 353.8 million to CHF 488 million between 2024 and 2028. As a result, the stock is likely to remain undervalued in the long term. It could pay off to consistently reinvest dividends in new shares here as well.
Trading strategy: Reloading

Europe

Swedish Orphan Biovitrum is currently performing surprisingly well (ticker symbol: SOBI SS): Since the start of the year, the stock has gained a remarkable 40.08%, making it one of Europe’s top-performing stocks. According to my latest analyses, the book value per share could rise from SEK 95.06 to SEK 176.40 between 2023 and 2028. The only downside is the dividend policy, as there are currently no dividend payments in sight.
Trading Strategy: Add to Position

The long-term development of the French Air Liquide (ticker symbol: AI FP) is impressive: Despite an 18.65% rise in its share price since the start of the year, there are still many reasons to invest in the company. As a result, operating profit (EBIT) could rise from EUR 5.068 billion to EUR 7.170 billion between 2023 and 2028. This would further strengthen the long-term outlook. It might therefore be worthwhile to reinvest the dividend in new shares year after year.
Trading strategy: Reloading

The Belgian Elia Group (ticker symbol: ELI BB) is exceptionally well-positioned. Book value per share is expected to rise from EUR 62.2 to EUR 102.6 between 2023 and 2028. The EBIT margin could rise to 30.2% by 2028. Reinvesting dividends in additional shares could pay off in the long term.
Trading strategy: Reloading

Shares of the Spanish company Endesa (ticker symbol: ELE SM) currently appear particularly attractive: Book value per share could increase from EUR 6.629 to EUR 9.466 between 2023 and 2028. The EBIT margin could reach 17.37% by 2028. In addition, an expected dividend yield of 4.48% in 2028 could make the stock even more attractive to long-term investors.
Trading strategy: Reloading

In the future, investors could benefit from the shares of the French oncology specialist Ipsen (ticker symbol: IPN FP). Book value per share is expected to rise from EUR 45.64 to EUR 85.36 between 2023 and 2028. For this stock, which has a market capitalization of EUR 13.33 billion, a record dividend of EUR 1.582 per share could be paid out by 2028. At the same time, the EBIT margin is expected to reach a new high of 31.35%.
Trading strategy: Reloading

Shares of the French energy company Engie (ticker symbol: ENGI FP) appear very attractive, as the company’s long-term outlook has improved significantly. Earnings per share could rise from EUR 0.87 to EUR 2.117 between 2023 and 2028. This would lay the groundwork for a sustained upward trend in the stock of the company, which has a market capitalization of EUR 38.45 billion, through the end of 2028.
Trading strategy: Reloading

US/CAN

From a speculative standpoint, the American pharmaceutical company Incyte (ticker symbol: INCY, US) could still be an interesting choice. In my opinion, the company has considerable future potential. As a result, operating income (EBIT) could rise from USD 620.2 million to USD 2.723 billion between 2023 and 2028.
Trading strategy: Reloading

Forward-looking investors might consider the stock of Ciena (ticker symbol: CIEN US). For this specialist in high-performance data transmission, operating profit (EBIT) could rise from USD 573.3 million to USD 2.667 billion between 2023 and 2028. In 2028, the EBIT margin could reach a new high of 18.83%.
Trading strategy: Reloading

Right now, I’m impressed by the U.S. pharmaceutical company Merck (ticker symbol: MRK US) is particularly impressive to me right now, as it is performing exceptionally well on the stock market. Earnings before interest and taxes (EBIT) could rise from USD 6.211 to USD 31.578 billion between 2023 and 2028.
Trading Strategy: Add to Position

The operator of senior housing also deserves special attention Welltower (Ticker symbol: WELL US): Operating profit (EBIT) is expected to rise from USD 1.110 billion to USD 3.851 billion between 2023 and 2028. The EBIT margin could grow to a record 21.62% by 2028, which would further underscore the company’s positive strategic development.
Trading strategy: Reloading

For me, one of the most attractive stocks is also Centene (ticker symbol: CNC US). Book value per share could rise from USD 48.35 to USD 58.04 between 2023 and 2028. The EBIT margin could reach 1.59% in 2028, confirming the solid operating performance of the company, which has a market capitalization of USD 32.46 billion.
Trading strategy: Reloading

Yours sincerely,
François Bloch

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Disclaimer
Neither Lucht Probst Associates AG nor François Bloch receive any payments or commissions from the products mentioned.