Trading Desk
“The Week”: Weaker labour market data
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François Bloch
Experte
VAT Group continues to see strong tailwinds – Infineon in high demand as a DAX heavyweight – Onto Innovation still watched closely on the speculative side
Switzerland
Shares of Eastern Swiss technology champion VAT Group (Ticker: VACN SW) have surged: up 81.24% since the turn of the year, with no end to the upward movement in sight. Book value per share could rise from CHF 25.24 to CHF 46.94 between 2023 and 2028. The dividend payout could increase from CHF 6.25 to CHF 12 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 positioning and skillful expansion steps, shares of SFS Group (Ticker: SFSN SW) are once again gaining investor confidence, a development attributed to the company’s skillful strategic direction. Operating income (EBIT) could rise from CHF 358.6 million to CHF 441.8 million between 2023 and 2028, which would make an annual reinvestment of the dividend into new shares worthwhile.
Trading strategy: Reload
Shares of SMI stock ABB (Ticker: ABBN SW) have picked up further pace in recent days: up 38.30% since the turn of the year. The background would be a marked improvement in the expected book value per share from USD 7.28 to USD 14.25 between 2023 and 2028, which would make the share price development of recent months at this CHF 149 billion stock more comprehensible.
Trading strategy: Reload
Shares of Zurich-based Bank Julius Bär (Ticker: BAER SW) gained 16.41% since the turn of the year. Book value per share could rise from CHF 30.08 to CHF 40.45 between 2023 and 2028, which would further explain the stock’s upward momentum. The dividend per share could increase from CHF 2.6 to CHF 3.52 between 2023 and 2028, which would qualify as a remarkable development.
Trading strategy: Reload
SPI index stock EMS-Chemie (Ticker: EMSN SW) continues its positive development: up 51.59% since the turn of the year. According to the quantitative models, operating income could improve from CHF 493 million to a new record high of CHF 663.1 million between 2023 and 2028, which would be remarkable given the current market environment. The growing dividend payout per share of CHF 12.75 to CHF 21.37 could be reinvested annually over this period.
Trading strategy: Reload
Shares of smaller SIG Group (Ticker: SIGN SW) have shown a positive development for some time: up 18.08% since the turn of the year. An improvement in book value per share is projected between 2023 and 2028, from EUR 8.102 to EUR 8.423. With an expected return on equity of 11.75% by 2028, first signs of improvement would be emerging.
Trading strategy: Reload
Europe
Shares of German DAX giant Infineon (Ticker: IFX GY) are seeing a marked upswing: since the start of the year, the stock has risen 71.32%, a very strong result by European standards. According to current analyses, operating income could improve from EUR 3.948 billion to EUR 5.776 billion between 2023 and 2028, which would be highly significant. Dividend per share could also rise from EUR 0.35 to EUR 0.52, which would make an investment more attractive going forward.
Trading strategy: Reload
Italian cable specialist Prysmian (Ticker: PRY IM) currently presents itself as an excellently positioned stock: in the current year 2026 alone, the share has gained 50.27%, a strong result compared with the return of its home market index. Book value per share could improve from EUR 12.98 to EUR 38.76 between 2023 and 2028. The expected EBIT margin would stand at 20.73% in 2028, which would be an excellent figure for the company by historical comparison, with a reinvestment of the dividend into new shares also worth considering, given that this strategy has proven very successful for this stock over a period of 5 years.
Trading strategy: Reload
Shares of French energy transition specialist Schneider Electric (Ticker: SU FP) currently qualify as an attractive stock. Dividend per share could rise from EUR 3.5 to EUR 6.014 between 2023 and 2028. With a record EBIT margin of 24.64% by 2028 and an expected dividend yield of 1.98% in 2028, the overall picture would support a position.
Trading strategy: Reload
Shares of securities exchange operator Deutsche Börse (Ticker: DB1 GY) continue to trend steadily upward: up 28.43% since the turn of the year. Book value per share could grow from EUR 52.19 to EUR 90.37 between 2023 and 2028. The EBIT margin could reach a new record of 54.75% in 2028, which would represent a strong figure for the company by historical standards.
Trading strategy: Reload
Shares of Italian energy stock Eni (Ticker: ENI IM) are considered attractive, with the upward trend expected to continue through the end of 2029. Book value per share at this EUR 70.5 billion stock could rise significantly from EUR 16.09 to EUR 19.55 between 2023 and 2028.
Trading strategy: Reload
US/CAN
Previously featured Onto Innovation (Ticker: ONTO US) is considered a stock with major potential on the more speculative side. Operating income at this USD 16.9 billion stock could improve from USD 195.4 million to USD 790.9 million between 2023 and 2028, which would represent an enormous increase.
Trading strategy: Reload
Conservatively oriented investors are backing test specialist Teradyne (Ticker: TER US). At this industry leader, operating income could improve from USD 547.3 million to USD 2.662 billion between 2023 and 2028. Return on equity (ROE) could reach a peak of 42.3% in 2028.
Trading strategy: Reload
Technology stock Applied Materials (Ticker: AMAT US) currently presents a very strong chart picture. Book value per share could grow from USD 19.46 to USD 52.48 between 2023 and 2028, which would represent an exceptionally strong increase.
Trading strategy: Reload
Shares of cybersecurity specialist Palo Alto Networks (Ticker: PANW US) are developing dynamically on the stock market. An increase in operating income from USD 1.67 billion to USD 5.82 billion is projected between 2024 and 2029. The EBIT margin could reach a new record of 31.44% in 2029, which would represent a very good figure for this sector.
Trading strategy: Reload
NASDAQ high-flyer CrowdStrike (Ticker: CRWD US) continues to rank among the particularly interesting stocks on the market. Operating income at this USD 277 billion stock could rise from USD 660.3 million to USD 2.561 billion between 2024 and 2029, which would underpin the company’s successful strategic direction. However, no dividend payout is expected for the foreseeable future.
Trading strategy: Reload
Valero Energy (Ticker: VLO US) ranks among the particularly interesting stocks on the market. Book value per share at this USD 117 billion stock could rise from USD 79.24 to USD 131.4 between 2023 and 2028. With a record dividend per share of USD 5.285 in 2028, the overall picture would appear compelling – a stock with a multi-year outlook.
Trading strategy: Reload
Herzlichst,
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 chosen to implement this idea with ASML, Infineon, Prysmian and Schneider Electric were issued.
An autocallable multi-barrier reverse convertible with the ISIN CH1602317435 based on the four stocks stands out as a stabilizer in any portfolio, offering a 18.70% coupon, a barrier at 59.00%, and a 12-month term.
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This Thursday at 5:00 p.m.: “Bloch Live”
Look forward to a lively conversation between two experts, fascinating topics, and candid opinions.
Be there!
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Disclaimer
Lucht Probst Associates AG and François Bloch do not receive any payments or commissions from the products mentioned.
