Share Picks
Ahhh! Just when you thought things could not get better in the Investment universe, it just did EasyVSTRs! So, when in Rome, do as the Romans do, grab some of your favorite brands across the Eurozone, and make magic happen.
Backdrop
In addition to our latest EasyGBP listings, we have added some exciting shares across different exchanges in the Eurozone. These exchanges include the German (DAX 40) and the Netherlands (AEX), with more to follow in due course.
Let’s take a look at 4 of the largest Brands listed across our EasyEUR wallet:
Adidas AG (ADS)
Every great brand has a beginning, and this German sports apparel brand has been making headlines since the 1920s and has undoubtedly conquered the world. But Adidas has not been without its fair share of ups and downs over the decades, and economic headwinds are nothing new for the company.
The geopolitical tensions and the pandemic lockdowns in China have weighed heavily on the textiles and luxury goods sectors, which has decreased the share price by over 40% in the last year.
Adidas lowered its 2022 forecasts after a dismal Q1 report which showed global sales shrank by 3% and profit from continuing operations lower by 38%. Despite sales collapsing by 35% across greater China and more double-digit headwinds expected in the region over 2022, Adidas has retained its 2025 goals and growth strategy to ‘Own the Game.'
The share price has been ticking lower by almost 40% YTD, but Adidas still has a 2% dividend yield to take note of and has a low Beta (5 Year) of 0.9 compared to the broader market.
Login to view Adidas AG (ADS) shares
on EasyEquities
Volkswagen AG (VOW3)
Did you say Big Brands? The Volkswagen Group has some of the biggest premium vehicle brands on the globe, including Bentley, Bugatti, Lamborghini, Audi, Ducati, and Porsche.
But unfortunately, it is not all champagne wishes and caviar dreams for automobile manufacturers since the pandemic lockdowns and invasion of Ukraine started. Supply shortages and higher prices have put a damper on car sales across Europe which saw their 11th consecutive month of decline in May, according to the European Automobile Manufacturers Association (ACEA).
On the other hand, Volkswagen has a very robust business model, evident by the annual report for 2021. Despite semiconductor shortages and fewer vehicle deliveries, the company still managed a 12% gain in sales revenue and operating profit before special items nearly doubled.
The outlook for 2022 is still optimistic, but the half-year financial report expected on the 28th of July 2022 will give more clues as to how the recent lockdowns in China have impacted manufacturing.
Login to view Volkswagen AG (VOW3) shares
on EasyEquities
SAP SE (SAP)
You won’t find any “Saps” working at this German multinational software corporation which is mainly known around the globe for its enterprise resource planning software.
SAP SE, or just SAP, has been a market leader in enterprise application software, and around 77% of the world’s transaction revenue touches an SAP system. The software solutions company operates through three major segments: Applications, Technology & Support; Qualtrics; and Services.
The share price has seen much volatility since the pandemic, and the war in Ukraine is also not helping the bottom line. Costs are rising, competition is picking up in cloud computing, and the weak uptake of software licenses and support offerings remains a headwind for SAP. The software provider’s departure from Russia is also expected to weigh on revenue and operating profits.
The company's first-quarter financial results did, however, show an increase in total revenue by 11%, as well as a 12% uptick in cloud and software revenue. SAP’s new Rise with SAP solution, which Microsoft has adopted, should be a driver for the company in the cloud computing space.
Like most software companies, SAP's share price has been on a downward trajectory since the start of the year and is down over 28% YTD and might see lower prices.
Login to view SAP SE (SAP) shares
on EasyEquities
ING Groep NV (INGA)
This Dutch multinational financial services group is one of the largest and most well-known brands in the Netherlands, and like most financials, it has been trying to stay ahead of the curve.
The ING Group NV has a solid European base and provides various banking products and services across retail, wholesale, and corporate banking. These products and services include savings, payments, investments, loans, and mortgages across its retail markets. The wholesale banking offering includes specialized lending, tailored corporate finance, debt and equity market solutions, sustainable finance solutions, payments & cash management, and trade and treasury services.
Like most Euro businesses, ING was also affected by the war in Ukraine. Still, unlike most, the financial services business has made risk provisions to cater to the higher risk of customers not repaying loans.
While uncertainty remains, the financial services group performed well over the last quarter, considering most businesses' geopolitical headwinds. The first quarterly 2022 results showed an improvement in the net result from the previous quarter. Return on Equity increased by 8%, and income from fees rose 9% year-over-year. ING Group has revised its growth forecasts for 2022-2025, expects total income growth to increase an average of 3% a year, and targets an annual average fee income of between 5-10%.
Login to view ING Groep NV (INGA) shares
on EasyEquities
New to investing
and want to know more about our other stock picks?
Read: U.K. Top of the POPS
Sources – EasyResearch, Bloomberg, Reuters, Adidas AG, Volkswagen Group, SAP SE, Nasdaq, Digital Journal, Zack’s Research, ING Groep NV, Barron’s.
Follow Barry Dumas
@BEEF_FINMARKETS
Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
