Here are the fastest-growing stocks in Europe

28 May 2024 - 15:00

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Only 2 European stocks have positively surprised the markets every quarter for the last five quarters.

Here are the fastest-growing stocks in Europe

Only 2 European stocks have positively surprised the markets every quarter for the last five quarters.

The banking sector in Europe has been a net beneficiary of the higher interest rate environment. Many banking stocks, such as France’s Société Générale, Spain’s Banco de Sabadell, Germany’s Commerzbank, and Sweden’s Swedbank, have beaten earnings per share estimates over the past five quarters.

However, the shares of these banks did not rise steadily following the quarterly results. This is due to factors including a negative outlook for future impairments, slowed loan growth, rising layoff costs, and more.

By contrast, shares of German lender Deutsche Bank jumped to a more than six-year high last week after it reported a 10% rise in first-quarter profit and beat expectations. However, the bank had missed expectations for the quarter ending June 2023 last year.

Italian bank UniCredit and Portugal’s Banco Comercial Portugues are the only stocks in the Stoxx Europe 600 index that beat analysts’ earnings per share (EPS) estimates every quarter over the period and have seen the value of their shares increase in the following session.

UniCredit was notable for several significant increases in its share price following its quarterly earnings releases. Most recently, on February 5, the company beat earnings estimates by 6.1% and shares rallied more than 8% in the following session. Four quarters ago, the stock rose 12.8% in a single session after the earnings release.

In February, the Milan-based bank said it planned to distribute 8.6 billion euros ($9.2 billion at the time) to investors following higher-than-expected profits. It had reported a fourth-quarter profit of 1.9 billion euros - nearly three times analysts’ expectations.

The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.|

Original article published on Italy 2024-05-31 06:44:00. Original title: Tra i titoli che crescono di più in Europa, c’è anche una banca italiana


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