“The Week”: Uptrend, interest rate pressure and structural winners

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  François Bloch
  Experte

Switzerland

Novartis (stock exchange symbol: NOVN SW) is in ever better shape. The share price has risen by 6.46% since the beginning of the year alone. If my models are correct, the operating result (EBIT) should increase from USD 16.372 billion to USD 25.323 billion between 2023 and 2028. Assuming that the dividend per share rises from USD 3.823 to USD 4.899 over the same period, it seems sensible to consistently reinvest these distributions in new shares.
Trading strategy: Reloading

Currently Emmi (stock exchange symbol: EMMN SW) is doing everything right and operations are running smoothly at the moment. The operating result (EBIT) could increase from CHF 258.2 million to CHF 389.2 million between 2023 and 2028. This makes the share appear undervalued in the long term. It would still make sense to consistently reinvest the dividends in new shares.
Trading strategy: Reloading

The Swisscom (stock exchange symbol: SCMN SW) is currently in top form and has further potential on the stock market. According to my model estimates, cash flow per share in particular should increase significantly. In the period between 2023 and 2028, this could rise from CHF 77.78 to CHF 116.50. This means that the share, which is valued at CHF 35.02 billion, continues to offer attractive upside potential for shareholders in my view.
Trading strategy: Reloading

The shares of Zurich-based ABB (stock exchange symbol: ABBN SW): the share price has risen by a strong 38.53% since the start of the year. Operating profit (EBIT) is expected to rise from USD 4.871 billion to USD 8.762 billion between 2023 and 2028.

Europe

The French STMicroelectronics (stock market symbol: STM FP) is still in an excellent position. The book value per share is expected to improve from EUR 17.72 to EUR 25.45 between 2023 and 2028. The EBIT margin of 16.96% expected for 2028 is solid by historical standards. It is also advisable to consistently reinvest dividends in new shares, as this strategy has proven to be very successful in the past.
Trading strategy: Reloading

The shares of the Italian steel tube specialist Tenaris (stock exchange symbol: TEN IM) appear very attractive. The book value per share is expected to increase from EUR 14.29 to EUR 18.47 between 2023 and 2028. With an expected EBIT margin of 18.88% in 2028, the company would be in excellent operational shape. In addition, the distribution side, which has been rather modest to date, should become significantly more attractive with an expected dividend yield of over 3% in 2027.
Trading strategy: Reloading

The shares of TotalEnergies (stock exchange symbol: TTE FP) should continue to give you pleasure. The book value per share is expected to increase from EUR 49.65 to EUR 66.48 between 2023 and 2028. An EBIT margin of 15.07% is also expected for 2028. This would potentially represent a new all-time high for the EUR 175 billion group. The attractive overall picture is rounded off by an expected dividend yield of 4.68% in 2027.
Trading strategy: Reloading

The securities of Poste Italiane S.p.A. (stock exchange symbol: PST IM) are showing a continuous upward trend: the EUR 31.36 billion share is thus heading for new record highs on the stock exchange. Earnings per share could rise from EUR 1.483 to EUR 2.06 between 2023 and 2028. The EBT margin is expected to reach a new record high of 26.31% in 2028.
Trading strategy: Reloading

The shares of Telecom Italia (stock market symbol: TIM IM) currently appear attractive to me. There is great hope that the positive upward trend will continue until the end of 2028. The operating result (EBIT) is expected to increase significantly from EUR 836 million to EUR 2.06 billion in the same period.
Trading strategy: Reloading

US/CAN

From a speculative perspective, the shares of Tower Semiconductor (stock market symbol: TSEM US) could be interesting from a speculative point of view, as the company has considerable growth potential. The operating result (EBIT) could improve significantly from USD 201.3 million to around USD 1.037 billion between 2023 and 2028. This would correspond to a remarkable operating performance, which would potentially result in a dynamic future profile overall.
Trading strategy: Reloading

Future-oriented investors rely on Fabrinet (stock exchange symbol: FN US). With the technology value of the future, the operating result (EBIT) could improve significantly from USD 280.9 million to USD 769 million between 2023 and 2028. The EBIT margin could potentially reach a new company record of 11.11% in 2028.
Trading strategy: Reloading

At the moment I am convinced by the US stock Vertiv Holding (stock market symbol: VRT US), which is making a very strong showing on the stock market. The operating result (EBIT) could grow from USD 1.054 billion to USD 5.466 billion between 2023 and 2028.
Trading strategy: Reload

“Up and away” with the securities of Diamondback Energy (stock market symbol: FANG US). The operating result (EBIT) is expected to increase from USD 4.570 billion to USD 6.617 billion between 2023 and 2028. The return on equity could possibly reach 39.94% in 2028, which would be a very strong figure compared to the industry as a whole.
Trading strategy: Reloading

May I introduce J.B. Hunt Transport Services (stock symbol: JBHT US)? The operating profit (EBIT) of this land transportation specialist is expected to increase from USD 993.2 million to USD 1.288 billion between 2023 and 2028. By 2028, the EBIT margin may reach a record 8.88%, which would be truly impressive.
Trading strategy: Reloading

In my opinion, the shares of Qnity Electronics (stock market symbol: Q US) are a real gem. Operating profit (EBIT) could rise from USD 1.026 billion to USD 1.632 billion between 2025 and 2028, with a market capitalization of USD 32.91 billion. With a potential EBIT margin of 26.43% in 2028, the overall picture would simply be right in my view.
Trading strategy: Reloading

Sincerely,
François Bloch

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