Stock market tips of the week: Ameriprise and VZ Vermögenszentrum

Ameriprise is under a good star, the VZ Vermögenszentrum breaks a limit – and other stock market tips of the week

In “Switzerland at the Weekend”, our money columnist François Bloch writes why the US asset manager Ameriprise promises profits, Swissquote beats everyone – and why it is worth taking a closer look at mortgages.

The US uniform specialist is doing more than excellent Tapes (CTAS US): An increase of a whopping 238.6% over the last five years is an excellent result for the $83.6 billion stock. The operating result (EBIT) could improve from 1.587 to 2.691 billion dollars between 2022 and 2027, which means that you should under no circumstances sell shares. (stock market star for years)

Now the papers have… VZ Holding (VZN SW) For the first time in the company’s history, it broke through the critical market capitalization limit of 5 billion francs. One thing is clear to me: the success story is far from over. According to my quantitative models, operating profit (EBIT) will improve from 167.5 million to 286.4 million francs between 2022 and 2027. With an expected record EBIT margin of 47.22% by 2027, additional securities will need to be purchased again. (reload)

The commitment to the Canadian consumer goods specialist is becoming an absolute securities sensation Dollarama (DOL CN): +192.1% over the last five years, while the local stock market index would have only allowed a return of 72.6%. This shows you that added value can be achieved with a clever individual stock strategy. The outlook in my financial mathematical crystal ball is also exciting: possible growth in operating profit (EBIT) between 2022 and 2027 from 984.6 million to 1.724 billion Canadian dollars. (Generate added value for you)

There is a jubilant mood at the online broker Swiss­quote (SQN SW): Share price growth of 705% over the last five years. The specific stock index, which only includes stocks from the Swiss financial industry, achieved an increase of 131.4% in the same period. Here too, my strategy with selected titles is bearing fruit. (Western Swiss banking champion)

The shares of the US asset manager turn into a real jackpot for you Ameriprise (AMP US): +280% over the last five years, while the US stock market index would have only allowed a return of +111.9% over the same period. Here too, the outlook is correct: expected increase in operating profit (EBIT) between 2021 and 2026 from $3.304 to $5.209 billion. With a return on equity invested of 51.69% by 2026, all traffic lights are green for the $45.9 billion title. (reload)

There is now also enthusiasm among my reading banking professionals, who are really into the new top provider when it comes to things Mortgages. A comparison on Friday morning at 5:52 a.m. showed the following picture: According to the website, you currently pay 1.84% for the 7-year mortgage at Champion, while the price breaker based on Lac Léman only charges 1.40%, subject to affordability. (Fighting for you)

Our expert François Bloch has committed not to be active in any of the titles discussed. Anyone who implements the stock market tips from this column does so at their own risk. “Switzerland at the Weekend” assumes no responsibility.

Questions from readers for the financial advisor

All questions from readers will be answered. Write an email to financial advisor François Bloch: [email protected].

I am a regular consumer of your business news, published in “Switzerland at the Weekend”. I would be interested to know which ten Swiss stocks do you think have great price potential in the next five years?

I can’t answer your question in general terms because a comprehensive overall assessment is missing crucial points. The whole aspect of dividends is totally ignored in your question. If you invested in the securities of the insurance company Zurich, for example, you would have achieved a return of 38% on a pure performance basis over the last five years. If we add the dividend distributions over this period, we achieve a total return of 81.4%. In retrospect, a permanent call sale on your positions would have been even better. In order to achieve the best possible result for you, it is important to rely on the reinvestment of dividends and not just focus on the pure price development.

Regarding your question about ten stocks: Do we assume that all ten stocks have the same initial weighting or do we set accents? How high must the minimum capitalization of the securities be? Before you started, did you think about which financial institution offers the best conditions and services? Let’s say a security loses 20% from the start, do you keep the security or sell it? When it comes to strategy, always think of FCZ coach Ricardo Moniz, how he literally “coached” FCB with Shaqiri last Saturday evening.

I can’t just name ten stocks. But I would be happy to do this for you with a strategy.

Investment tip of the week