Eleven treasures in the stock market to win with the pull of small and medium shares
Small European stocks are behaving very positively in 2021. Proof of this is that the MSCI Europe Small Cap Index has risen 15% so far this year.
"We expect stronger earnings growth in the small-cap segment over the next two years, which, coupled with decade-low relative valuations, translates into a strong backdrop for outperformance from small caps." in the future," Julius Baer analysts note.
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What do the funds think? Your shopping list, revealed by Goldman SachsFrom a regional perspective, they prefer "European small caps to US ones, given the greater exposure to growth-sensitive sectors, which should benefit from the grand reopening in Europe," they add.
In this sense, the analysts at the investment firm Berenberg have updated their list of the best investment ideas in the universe of small and medium-sized companies in Europe and offer us a selection of 11 stocks that may represent an interesting opportunity for the future. What's left of the exercise? Your best options are:
ESKER. It is a leading developer of document process automation (DPA) software in France. "It is well positioned to capture structural growth in its markets from regulatory changes and the general shift to digitalization. It also has growing profitability, strong cash flow generation and a strong balance sheet," its analysts explain.
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Morgan Stanley's 25 European Stocks to Win the Champions of ProfitabilityFRAGRON. It is a world leader in the pharmaceutical compound market. It is a "high-quality" stock that benefits from multiple growth drivers and a strong market share position. These factors help support superior sales performance, an EBITDA margin consistently above 20%, and an ROIC ( double-digit return on investment", they explain.
FASTENED. It is a pan-European developer and operator of fast charging stations for electric vehicles (EV). "It represents a pure and attractive game on the theme of transport electrification."
Flatex DEGIRO. It is the fastest growing online broker in Europe and has an attractive opportunity to consolidate the European market. "At the same time, strong growth should help margin expansion, given the scalability of the business," Berenberg argues.
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Red flag in the bags: this is where you should invest and jump in the pool this summerMITHRA. It is a Belgian biopharmaceutical company that "has introduced the first new form of estrogen to the market in 80 years. It offers the same benefits as current estrogens, but with a substantially improved safety profile."
RUBIES. It operates primarily in power distribution in the emerging markets of the Caribbean and Africa. "It benefits from a strong share of the local market and high barriers to entry. Its solid balance sheet also supports it on the rise in mergers and acquisitions," say these experts.
SAN LORENZO. It is a yacht manufacturer "with a unique and resilient business model, a strong brand reputation and more room for top-line growth and margin improvement, elements that are underestimated," they say.
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Bestinver's five reasons to buy Facebook during "decades"SIGNIFY. World leader in general LED lighting. “It trades cheaply in a market that incorrectly assumes current cash flow and earnings are unsustainable. Its impressive ESG (social responsibility) credentials are an attractive bonus,” they comment.
ECOPAK. "Industrial water treatment company exposed to two megatrends: tightening regulation in response to declining freshwater supplies, and growing pressure on industrial production to reuse water or find alternative sources," notes Berenberg.
FRANCHI UMBERTO MARMI. Leading supplier of the prestigious Italian Carrara marble. It has a unique and underappreciated business model, luxury niche positioning and impressive profitability.
HYLORIS PHARMACEUTICAL. "Specialized early-stage pharma that develops new value-added drugs that offer substantially higher returns than generics, but without the binary risk of new chemical companies," notes Berenberg.
