TOP EUROPEAN STOCKS TO INVEST IN TODAY

“Should I buy European stocks?” This is probably something that most traders consider at one stage or another. European stocks are often overlooked by investors because the media is so focused on US stocks. However, there are some favourable companies in Europe—and many of them offer better value than US stocks.

Investing in Europe offers diversification away from the US market which is highly correlated with technology and vulnerable to uncertainty because of the US-China trade war.

One Financial Markets offers CFDs on 46 of the largest quality stocks listed around Europe. The following 5 European stocks are worth adding to your portfolio, or to your watchlist for 2020.

SAP AG (SAP, Germany)

SAP is one of the largest providers of enterprise software in the world. SAP offers solutions to manage sales, finance, supply chains, human resources and other departments for medium to large businesses. The company’s solutions can be used to manage almost any part of any type of business.

SAP has made several large acquisitions in recent years which have taken some time to integrate. However, a recent change of leadership and pressure from activist investors have led to a streamlining of the organization.

SAP’s cloud business is beginning to grow very rapidly which has caused investors to take notice. If this continues, the stock will probably outperform competitors like Salesforce and Oracle.

SAP has a market value of € 150 billion and annual revenues of almost € 25 billion. The stock trades on a relatively high PE, but that should unwind quickly if the growth analysts are expecting materializes.

Vivendi SA (VIV, France)

Vivendi is a media company based in France. It owns Universal Music Group, Canal+, Gameloft, and several internet businesses. This is certainly not a growth business, but it does own very profitable assets.

Universal Music Group is benefiting from the growth in streaming music platforms like Spotify and Vivendi earns royalties every time music owned by UMG is played. Vivendi recently sold part of its holding in UMG which highlighted the fact that Vivendi’s assets may be undervalued. Vivendi plans to sell as much as 50% of UMG which could bring in over €15 billion.

Vivendi is worth € 30.5 billion and earns around €13 billion in revenue. Besides the potential for value to be unlocked, the stock has a generous 2% dividend yield.

Total SA (TOT, France)

Total is a diversified energy company. The company engages in every part of the oil and gas industry from exploration to extraction and distribution. Total has also been investing heavily in renewable energy which sets it apart from the other energy giants like Exxon Mobile and Royal Dutch Shell.

The oil price has been very volatile over the last 18 months. However, the fact that Total operates throughout the value chain, and is diversifying into renewable energy makes it one of the more defensive energy stocks to own.

Total’s ROE and capital allocation also compares favourably with its peers. It has managed to keep its net profit margin above 5% which is impressive for the sector.

The company’s market cap of € 128 billion makes it the 4th largest energy company in the world. The PE is 15 and the forward PE is 11 which means the stock should offer a good return in the next few years. On top of that, there is a very generous 5.4% dividend yield.

Infineon Technologies AG (IFX, Germany)

Infineon is a Semiconductor manufacturer based in Germany. It was spun out of Siemens in 1999. Infineon manufactures components used in the automotive, power, electrical appliance, and digital security industries. 

The semiconductor industry is cyclical, and for the most, the industry has been through a rough period in the last 18 months. This has resulted in Infineon’s valuation falling to the bottom of its long-term range. The stock price has already established a strong trend in the second half of 2019 and looks set to continue its recovery into 2020.

Infineon’s market cap is € 25 billion, and it generates around € 8 billion in annual sales. The return on equity over the last 5 years has been 15% and the profit margin averages around 13% which gives it cash flow for growth.

Novartis AG (NVZ, Switzerland)

Novartis is a Swiss pharmaceutical company that was formed when Ciba-Geigy and Sandoz merged in 1996. Novartis produces several well-known drugs including Clozaril, Ritalin, and Voltaren. It also produces several products for the pet care and agriculture industries.

In total, the company owns patents on over one hundred pharmaceuticals, with several more in development. In fact, ten Novartis products have sales of over $100 million a month. Positive results were recently announced for tests of a breast cancer drug the company is developing.

The company’s market cap of CHF 231 billion with annual sales over CHF 50 billion. Novartis is currently fairly valued but is a defensive company and a solid long-term investment.

 

 

All content is provided for your information only.

This article may contain opinions and is not advice or a recommendation to buy, sell or hold any investment. No representation or warranty is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however we have put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.

One Financial Markets expressly disclaims all liability from actions or transactions arising out of the usage of this content. By using our services, you expressly agree to hold One Financial Markets harmless against any claims whatsoever and confirm that your actions are at your sole discretion and risk.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets
     

    Level 2
    36-38 Leadenhall Street
    London
    EC3A 1AT
    United Kingdom


    T: + 44 ( 0 ) 203 857 2000
    E: info@ofmarkets.com
  • Kuwait Office
    VI Markets 
    Sharq - Mazaya Tower 02 - 10th floor 
    PO BOX 3040
    22031
    Salmiya, Kuwait   

    T:
    + 965 22256988
    E: info@vimarkets.com.kw
  • Dubai Office
    One Financial Markets 

    Office 1404
    Ubora Tower
    Business Bay
    P.O. Box 31482 Dubai
    United Arab Emirates


    T:
     +971 4 4531200
    E: info@ofmarkets.com

One Financial Markets is the trading name of C B Financial Services Ltd, a company registered in England with company number 6050593. C B Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
www.onefinancialmarkets.com is owned and operated by C B Financial Services Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: