How is the stock market doing in the summer? Trends.be polls equity market observers weekly about their preferred securities.
This week it’s Xavier Boussemaere’s turn, who looks for both undervalued and overvalued shares at the independent Belgian fund house Aphilion. “Today, the stocks below are part of the broad selection of nearly one hundred stocks of Aphilion Q² – Equities, a global equity fund that is very actively managed using quantitative techniques and models,” Xavier noted in an email to Trends.
1/ ASR The Netherlands
“ASR is one of the largest insurers in the Netherlands. The name ASR is a combination of Amerfoortse and Stad Rotterdam. In October 2008, ASR was nationalized as part of Fortis in the Netherlands (just as in Belgium all of Fortis’s insurance activities were brought together as Ageas), and in 2016 the Dutch state floated ASR again on the stock exchange.
“Last year, ASR took over Aegon’s insurance activities in the Netherlands. ASR is thus taking the lead in the consolidation of the sector in the Netherlands. With that acquisition nearing completion, most analysts expect ASR to be on track for strong results this year, mainly thanks to rising interest rates. As the stock has not yet reacted to the improving outlook, it recently entered the Q² selection for both the Equities (worldwide) and Europe – DBI-RDT (European equities only) sub-fund.”
2/ Nikon Corp
“Nikon Corporation is a Japanese multinational company that is also famous among us, especially thanks to its digital SLRs. Nikon has a very long history of producing high quality optical instruments, lenses and advanced mirrorless cameras. Nikon’s products have built a strong reputation for reliability and image quality, and as a result are often used by both professionals and enthusiasts around the world.
“The most recent quarterly results were well received by the market, and thanks to the acquisition of SLM Solutions (3D metal printers), management’s ambitious long-term targets also seem achievable. The Japanese stock market is also experiencing a revival.”
3/ Watts Water Technologies
“Watts Water Technologies is active worldwide in the development, manufacture and distribution of products and solutions in water management, sanitation, heating and cooling. Their products (from taps over water filters and pressure regulators to circulation pumps and rainwater solutions) are used in both residential and industrial buildings. WTS continuously invests in research and development in order to launch new products that can contribute to more efficient water management and energy savings, and this sector has had the wind in its sails for years. Moreover, acquisitions are also frequently made, so that synergy can be realized and the turnover and profit per share can always grow along with the share. Despite challenging near-term market prospects, the company was able to raise operating margin expectations recently.”
4/ Solvay
“The chemical group Solvay is one of the few Belgian positions in the portfolio of Aphilion Q² – Equities. Many chemical stocks suffered in recent quarters due to rising inflation and the uncertain economic outlook, which has hit the more cyclical stocks particularly hard. But Solvay’s quarterly results showed that sales remained solid, and the company was able to counter inflationary raw material cost pressures very well. In addition, the focus on cost efficiency and cash flow is paying off, keeping earnings expectations intact for the coming quarters. The planned share split into two independent publicly traded companies, Syensqo and Solvay, could unlock additional shareholder value. A new player on the Brussels stock exchange is always welcome.”
5/ Teleperformance
“Teleperformance is a global leader in call centers, with more than 400,000 employees in 91 countries. Teleperformance’s services include customer service, technical support, sales support, social media management, order management and payment processing. They use analytics tools to track, measure and improve customer interactions to gain insights that help companies optimize their operational efficiency. Since allegations in Time about working conditions for employees in Colombia (where Teleperformance works, among other things, as a subcontractor for TikTok) at the end of last year, the share has had a hard time on the stock market. Not even a recent multi-year contract with Microsoft, which includes the use of Azure’s artificial intelligence, could turn things around. Due to the combination of a sharply declining share price with operational performance (turnover and profit estimates) that has not fallen along with it, the share has now become a buy-worthy item according to Aphilion’s quantitative models.”
Last week:
2023-07-02 05:35:16
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