Europe is home to some of the world’s most giant corporations, with market capitalizations of several hundred billion dollars; however, these giant European corporations are not as well known as they may be among investors outside the euro area. U. S. and Chinese tech stocks will monopolize media headlines and investors’ portfolios, pushing European stocks into investor blind spots. However, as Kiplinger recently pointed out, overlooked markets, such as Europe, are ready for investment opportunities.
Even the eurozone’s largest and most eccentric corporations are reasonable compared to their American counterparts. Comparing the average price-to-earnings (P/E) ratio of European corporations compared to U. S. and Chinese corporations can help prove this claim.
Discover the five biggest movements in Europe 1 #. LVMH (EPA: MC)
Comparison: Nike (NYSE: NKE), market cap: $264. 8 billion, price-to-profit ratio: $45. 07
LVMH, short for Louis Vuitton Moët Hennessy, is the largest inventory in Europe. Headquartered in France, the company has built and acquired a portfolio of more than 70 luxury brands in thirty years. That is, many of its brands are household names in Europe and around the world. In addition to its namesake, LVHM also owns Sephora, Dior, Bulgari and Tiffany and Co. , helping the company generate €44. 2 billion in 2021 YTD.
The dynamism of LVMH’s portfolio explains the Company’s positive outlook. to the corresponding era of 2019.
Stock Exchange: SIX Swiss Exchange Market Capitalization: USD 362. 8 billion P/E ratio: 27. 70
Comparison: Kweichow Moutai (SHA: 600519), market capitalization: $358. 9 billion, price/profit ratio: $45. 75
The Swiss conglomerate is the largest company of the moment in the eurozone and the largest food company in the world. Nestlé owns more than 2000 brands, adding customers (KitKat, Smarties, Häagen-Dazs, Mövenpick, Lean Cuisine, Maggi, Hot Pockets), accessories (Boost), puppy care (Purina, Friskies, Fancy Feast) and baby food (Gerber, Ceralac).
The production of goods for customers exposes Nestlé to the inherent threat of rising inflation that is occurring in the euro area. However, the company is confident that its margins have strengthened and expects biological expansion across the business to increase through 6% to 7% in 2021.
Stock Exchange: Euronext Amsterdam Market Capitalization: $336 billion Price-to-Earnings Ratio: $51. 57
Comparison: Cisco Systems (NASDAQ: CSCO), market capitalization: $236. 1 billion, P/U ratio: 22. 39
ASML is a Netherlands-based manufacturer serving the semiconductor industry and supplying appliances and software to Taiwan Semiconductor Manufacturing (NYSE: TSM), Intel (NASDAQ: INTC) and Samsung Electronics (KRX: 005930).
What ASML has going for it is the near-total dominance of its industry. ASML is estimated to control 90% of the semiconductor software and appliance market. Although ASML expects an increase in market share in the medium term, its main consumers are expected to particularly increase their investments in production lines.
# 4. Roche (SWX: RO)
Stock Exchange: SIX Swiss Exchange Market Capitalization: USD 335. 5 billion P/E ratio: 21. 60
Comparison: Johnson
Roche is at a time when patent coverage expires for many of its legacy drugs. Herceptin, Avastin and Rituxan, which generated a third of the company’s revenue, are falling in sales as non-patent brands hit the market.
However, several of the company’s new drugs are expected to have long-term expansion prospects. The progression and approval of medications is regularly incredibly slow. However, in one case in 2021, Roche obtained expedited approval from the U. S. Food and Drug Administration. USA For a drug for Alzheimer’s disease.
# 5. L’Oréal SA (EPA: OR)
Comparison: Revlon (NYSE: REV), market cap: $550 million, price/profit ratio: $38. 87
L’Oréal is a French company of cosmetics, good looks and products for the customer and the highest price of the moment in Euronext Paris. A well-known call in itself, L’Oréal, also owns Maybelline, Lancôme and Garnier, among a handful of other brands. Giant has projected a turnover of “crazy twenties” for 2021 and has not disappointed since the beginning of the year. Group sales for 2021 increased more than 18. 0%.
Looking ahead, the outlook for L’Oréal is potentially just as optimistic, and the Group is expected to benefit from increased demand from Chinese consumers, as well as from consumers who prefer a direct-to-consumer delight of higher margin in (DTC). . L’Oréal noted that DTC will account for 50% of its sales in the future, however, it has not set a timeline for achieving this stage.