banking crisis. Those are the two words that made the media headlines the most this week. The instability created by two regional Wall Street banks has shaken the foundations of some European companies – like the already weakened Credit Suisse – with a severe penalty in equity markets.
And yet for many Banking fundamentals remain intact, more after the last rate hike by Christine Lagarde. Enough to buy? Mónica Triana and Carlos Gil, Investment Strategies Trading Analysts, recognize that the market is purely and simply there to operate in the short term, although they believe it is preferable to buy higher but in a clear trend. “It’s better to go along and pay a little more, but with the knowledge that things are going up.”
Maybe it’s time to look at other values. José Antonio González, technical analyst for investment strategies admits that “if we look at the aggregated readings of our trend strength indicators, we find that 60% of the companies that make up the benchmark stock index in Spain, Ibex 35, are trading in an environment dominated by bullish structures, while only the 20% of these trade in what we consider to be a weak context, so the fund structure is not deteriorating at this time. See: Correcting the lbex 35 buying opportunity?
From this point of view and based on a basic assessment, there are actions that pleaseto the department of analysis of investment strategies such as Mapfre, Repsol, ACS or Logista in good shape, measured by two key variables such as the average daily fluctuation – which shows the average profitability of the asset for a given period and, if larger, it is, the stronger the company is – and the beta coefficient, which shows the sensitivity of trading in relation to the overall market”.
On the other hand, the defensive sectors with beta coefficients below one are the ones that show the best performance. See sectors like “Utilities”, Food & Beverage, Healthcare or Telecom Operators. But how are the top consumer companies in the stock market? Is there an opportunity in the industry? These types of companies are considered defensive and counter-cyclical as they typically have predictable and recurring revenue and profits and do not rely on economic growth to grow their sales.
Without leaving the Spanish stock market and going down in capitalization, there are stocks like Netex that are backed by the analysts with buy recommendations and objective prices almost double the current price. Therefore, we believe that we have a really high revaluation potential,” said Alejandro Faginas, CFO of Netex, in an interview moderated by María Mira, fundamental analyst at Investment Strategies.
However, if you are looking for one of the most popular assets for analytics houses, it is without a doubt Google. The determined engagement of a major investment firm like Goldman Sachs is solidifying the value in the market, despite the beginning of full-year profits and setbacks from problems with artificial intelligence. From TipRanks there is unanimity of buy in the analyst ratings because they all opt for it. In terms of average price target, from the highest of $160 to the lowest of $115 per share, it is $129.40, making its margin for improvement in the market very high, from 42.8% for Google- Shares. See: Google is one of the web’s two most popular stocks for Goldman Sachs
There is no doubt that the future lies in technology and if we choose to invest on the side of the strong, it is unthinkable to ignore the semiconductor sector. “Demographic change, the increasing development of emerging countries and the inexorable digital metamorphosis will sustain and even boost demand for semiconductors worldwide. Here, as investors, we have the opportunity to participate in this industry and its high potential not only in the short term, but also in the medium and long term,” says María Mira, fundamental analyst at Investment Strategies, who analyzes Taiwan key figures. Semiconductor.
One of the defensive sectors most valued by investors has historically been healthcare. The global pandemic caused by COVID has made all citizens aware of the importance of health services, the need for advances in research, technology and solutions to provide more efficient patient care. To talk about all this, we invited one of Spain’s leading experts in this field, Eduardo Sallés, CEO of Top Class Capital SL EAF, on March 23rd.
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