Elsewhere, UBS named ASML as one of 30 disruptor stocks benefiting from 5G rollout. The research firm likes ASML’s dominant market share in lithography equipment and its significant pricing power advantage. ASML ended the fiscal 2021 with total revenues of €18.6 billion ($21.1 billion) representing 33% year-over-year growth. For fiscal 2022, the company is guiding for full-year sales best australian stocks to watch growth of around 20%. The company is the only manufacturer of leading-edge extreme ultraviolet (EUV) lithography machines, which it supplies to Samsung, Taiwan Semiconductor (TSM) and Intel (INTC). Demand for these machines, which enable more precise, efficient production of small semiconductor chips, is forecast to see a 15% compound annual growth rate (CAGR) through 2026.
- In addition, recent acquisitions such as ASTI Mobile Robotics Group solidify its market leadership in high growth niches.
- As of 2019, the European Union represents approximately 18% of the global gross domestic product (GDP) and is one of the most important investment destinations in the world.
- Ams-Osram announced in July profit at the upper end of its guidance for the second quarter, and said it would be exiting some non-core semiconductor businesses to sharpen its portfolio.
- The shares will also be shown in the U.S. dollar equivalent, not the actual quoted price in Swiss francs.
Additional growth drivers come from Sanofi’s rare blood disorder drug Cablivi, diabetes drug Soliqu and lucrative vaccine franchise, fueled by strong sales of its influenza and meningitis vaccines. In early December, the company acquired an acne vaccine and licensed new mRNA vaccine technologies from Baidu (BIDU). What makes ABB one of the best European stocks is that its leverage to major macro-trends like automation, robotics and electrification has the firm well-positioned for accelerated long-term growth. In December, Nestle agreed to sell part of its stake in L’Oreal back to that company for $10 billion (NSRGY still owns 20.1% of the French cosmetics firm). The proceeds from the sale will be used for share repurchases and to invest in Nestle’s food, beverage and nutritional health businesses.
Why should you consider European stocks?
On top of this, you will have to learn bank holidays which will be different from the UK’s. Buying and selling stock on foreign stock exchanges can involve some tricky tax calculations and legal considerations. Researching individual foreign stocks can also prove difficult with foreign languages to translate and foreign currencies to convert. And while ADRs solve some of these problems, they are usually only available for very large foreign companies and tend to be somewhat liquid at times. European ETFs may offer the easiest way to gain exposure to European markets, but they aren’t the only way to buy into the region.
It has twice the market cap (at the time of writing) of the more famous BP. The moat provided by its strong diabetes and obesity drug franchises has contributed to reliably rising EPS averaging 8% annually over five years. Novo Nordisk’s sales grew 7% in the first half of 2020, fueled by growing worldwide demand for its diabetes, obesity and human growth disorder therapeutics.
European ETFs: The Easiest Way to Invest in Europe
Traders and investors outside of the United States have other choices that may not be available to U.S.-based traders. For example, Saxo Bank is an investment bank based in Denmark and why do forex traders recruit allows its clients to trade EU stocks in addition to a wide range of other tradable assets. Many prominent U.S. companies now derive half of their income from international operations.
Top 3 Country-Specific European ETFs
The company’s total sales grew 8% year-over-year in the first nine months of 2021, fueled by 39% diagnostic division revenue gains. Roche increased its full-year 2021 guidance to mid-single digit sales and earnings growth and said it expects to boost its dividend. Consensus analyst estimates target $2.83 in earnings per share (EPS) for fiscal 2021, rising to $3.07 next year and more than covering the $1.22 per share annual dividend.
How to Buy European Stocks
European ETFs can be divided into many different categories, including broad market ETFs, regional ETFs, and country-specific ETFs. There are also many other options, such as ETFs based on asset classes, such as the WisdomTree Europe SmallCap Dividend Fund (DFE). “The company has the ability to grow despite the biosimilar erosion of key franchises,” writes UBS analyst Michael Leuchten (Buy). “The pipeline is not mere replacement but adds true upside optionality which at the current valuation discount is we think mispriced by the market.” Roche has emerged as an important player in the coronavirus space thanks to its COVID-19 antibody-based test kits. The company also is teaming up with Regeneron to triple production of a highly promising COVID-19 therapeutic.
Europe is a very economically diverse region, which makes European ETFs ideal for diversifying a primarily U.S.-based stock portfolio without the risk of emerging markets. This Vanguard fund is the largest developed-markets ETF and garners Morningstar’s top rating. It is designed to track the performance of the major developed countries (excluding the U.S.) index and is categorized as a foreign large blend fund. Novo Nordisk owns one of the few FDA-approved obesity drugs (Saxenda) and is pushing to have the drug covered by employer health plans.
The value of investments and the income from them can fall as well as rise and are not guaranteed. The offshore funds described in the following pages are administered and managed by companies within the BlackRock Group and can be marketed in certain jurisdictions only. It is your responsibility to be aware of the applicable laws and regulations of your country of residence. Further information is available in the Prospectus or other constitutional document for each fund.
Novo Nordisk (NVO, $97.29) holds a market-leading 29.9% share of the diabetes care market with its Ozempic and Rybelsus products. It is also expanding market share in obesity care with its prescription weight-loss drug Wegovy, a once-weekly injection recently launched in the U.S. In addition, NVO holds a 35.5% global market share in human growth disorder drugs and is introducing new treatments for rare blood disorders.
Saxo Bank has an excellent research department and has oversight from 10 top financial regulators. Saxo Bank’s brokerage services are also available to traders in many jurisdictions outside of the EU. With over 1 million financial instruments to choose from, you can use Freedom’s quality mobile app or reach out to the customer service team via live chat, phone or email. You can pay with Visa, Mastercard or bank draft, and there are currently zero commissions for 30 days for new clients. New drugs will come from in-house research and development (R&D), partnerships and acquisitions. The company is teamed up with AstraZeneca (AZN) on Nirsevimab, a vaccine that prevents respiratory viruses in infants, and with Regeneron on cancer drug Libtayo.
SAP’s cloud revenues grew 25% during the first six months of 2020, total revenues rose 4% and EPS more than doubled as a result of margin gains on a better product mix. Both figures are a little ahead of full-year estimates, which include forecasts for 2020 cloud revenues to grow 18% to 24%, and total sales to gain 1% to 3%. The company’s sales fell 1.5% during the first six months of 2020 because of reduced electricity tariffs. That was partially offset by revenue contributions from Hispasat SA and a Brazilian electrical utility acquired in March. Net profits declined 8.4% due to acquisition-related expenses and higher interest costs. On the small-cap side, Borregaard (BRRDF), a bio-refinery, has also been a leader.
This fund is available on most platforms and gives investors broad-based exposure. There is a currency hedged version, iShares Currency Hedged MSCI Eurozone ETF ( HEZU), that has performed better over recent years due to the strength of the U.S. dollar, he says. This method of how to buy elongate is particularly useful for investors without a lot of capital. A more connected global economy, widespread access to information, and deregulation in the financial markets have made it easier to diversify your investment portfolio without breaking the bank. For many investors, prudent diversification has meant more than balancing asset class exposure or carefully choosing different sectors or industries in which to invest. “Before investing, take inventory of your current holdings to avoid becoming concentrated in any one area of the market,” Loewengart says.
A broker based in the EU might be best when you want to trade European stocks, depending on where you’re located and the broker you have in mind. You can use your existing trading account or open an account with a reputable online broker, and many European stocks can be purchased through ADRs, EDRs or GDRs. Lisa currently serves as an equity research analyst for Singular Research covering small-cap healthcare, medical device and broadcast media stocks. Since their May highs near $61, the stock is down around 18% – pressured by inflation worries and, more recently, news that the company ended M&A talks with U.K.
The biggest change to our view recently has become more downbeat on the outlook for European financials, which we think fits a, “right place but wrong time narrative”. The second factor starting to drag on Europe’s relative performance, is the strong rally in growth stocks that we are seeing globally. While Europe has its own fair share of such companies, its tech weight overall remains considerably below that of most other regions. For example, tech is at about 7% of the European equity market versus 13% for Asia and over 30% for the U.S.. Quite simply, the size of this differential makes it difficult for Europe to keep pace with other regions when growth stocks are outperforming more broadly, such as now. SNY earns Buy or Strong Buy ratings from five of the six Wall Street analysts following the stock.
