The Best Values ​​to Win the Summer Stock Market Race

Fifteen firms outperformed Ibex in the last quarter with their investment proposals. Which values ​​are most recommended for the coming months?

Income 4 and mutual assets They top the rankingsLast quarter portfolio competition organized by EXPANSIÓN, with a yield of 10.23% and 5.32%respectively, which contrasts with the 1.18% fall in the Ibex index.

In that In the semester, the Spanish index is 8.33%, with four companies achieving returns between 11.17% and 18.36% on their investment offerings: Tradition, XTB and Renta 4. in my head.

Their offerings for this quarter are varied. 20 firms that participate with their securities portfolios are betting on Iberdrolawho sprints hard and rises from 20th place to first place in the favorites ranking.

The utility has lagged behind in 2024, but experts believe it will gain momentum amid renewed expectations of interest rate cuts later in the year. “In the short term, its valuation is attractive in a scenario of gradual decline in bond yields and provides protection in a more challenging market environment,” explains Singular Bank. They believe it is the best company in Spain to benefit from the long-term energy transition process, thanks to its diversification, financial strength and exposure to the United States.

At Bankinter, they are betting on an electricity company and explain that the deteriorating prospects for renewable energy are forcing them to opt for a company with a broader range of businesses.

At current prices, it trades at 14.7 times expected 2024 earnings, giving a yield close to 4.7% for that year.

Repsol remains in second place in the ranking as a value with more support. Experts forecast a recovery from the 4.5% drop in the previous quarter. Its valuation stands out (it trades at 4.4 times 2024 PER, according to Bloomberg consensus), and it has an attractive dividend yield for both cash and share buybacks.

Gesconsult points to this as a value that will benefit from lower interest rates and businesses related to renewable energy. In addition, the price of oil, which usually sets the pace for oil companies on the stock market, is expected to remain above $80 a barrel, which should increase their profitability.

Inditex dropped from first place in the ranking to thirdafter hitting a record high of 47.43 (dividend-adjusted) in June. The textile firm, which has gained more than 6% this month and 17% in the first half, is trusted by five investment firms, who rate it the best in the sector thanks to its flexibility and mix of in-store and online sales.

The company, chaired by Marta Ortega, beat expectations for its first fiscal quarter and saw sales rise at the start of the second quarter, while controlling costs to boost profits. The company’s new investment plan supports organic growth without compromising shareholder remuneration. This week, the shareholders’ meeting approved a gross dividend of €1.54, accrued for this year. It offers a dividend yield of between 3.5% and 4.20% until 2027.

IAG is increasing experts’ appetite ahead of the summer season, in which the airline is expected to benefit from increased air traffic. World.

While the business jet segment is still below pre-pandemic levels, its operating margin has risen to 11.9% from 5.4% and debt has fallen, giving analysts confidence in its stock market bull run. The next catalyst could be the integration of Air Europa.

Experts note that IAG is trading cheaply, with PER valued at 4.5x. profit estimates for 2024. While other airlines also trade at low multiples, some firms believe IAG has the clearest path to profit growth.

A scenario of slower-than-expected rate cuts at the end of 2023 plays in Spanish banks’ favour. CaixaBank receives support in the coming months and surpasses Santander in terms of the highest current portfolio value. third quarter ahead, followed by BBVA, which is preparing for a hostile takeover of Sabadell, which is no longer on the market for this summer (see page 4).

The one who will receive support ACS, despite setting a record of over 40 euros per share in June, thanks based on the first quarter performance. The order book remains strong, indicating the sustainability of the business going forward.

Some firms see it as a key player in next-generation infrastructure. (Next generation). They trust a construction company after the management team has built trust and increased confidence and predictability in its growth and profitability.

He The defensive nature of the telecom business points to cell tower company Cellnex.which also benefits from future interest rate cuts. The company is changing course and is now looking to transition from a growth company to a dividend company.

Attractive valuation for auto parts manufacturer Cie Automotive makes it interesting for several investment firms.

Others trust Colonial, although he has uncertainty about his relations with France, a country that raises doubts about his future policy.