-
After a brutal week on Wall Street sparked by rising fears over budget troubles in Europe, a concerted and focused bailout effort announced over the weekend sent European stocks soaring on Monday. The Dow was up dramatically, to the tune of about 4%, but that’s nothing compared to the 9% run for Paris stocks, or the over 5% run for England and Germany exchanges to open the week.
Some doom-and-gloomers are going to still be beating the drum for another reversal, but there are many stocks out there that look to rejoin the global recovery with dramatic gains. Don’t miss out on this European resurgence! To help you get back into this region, several of our top InvestorPlace experts offer some great European picks to profit going forward.
-
Hot Europe Stock #1 – Warner Chilcott (WCRX)
Picked by: 91抖阴, editor of Global Growth
Strategy: Fast trading of the best ADRs seeing the biggest buying pressureOne stock I’ve recently added to my Buy List is is Warner Chilcott PLC (), and Irish pharmaceutical manufacturer. WCRX sells brand-name drugs to OB/GYNs (including the hormonal contraceptives Femcon FE, Loestrin and Ovcon) and to dermatologists (the acne drug Doryx).
In the fourth quarter, Warner Chilcott’s earnings increased 63% and sales climbed 183% after its $3.1 billion acquisition of Procter & Gamble’s global drug business. And just last Friday, May 7, WCRX reported that its revenue tripled year over year! This is a strong European stock that has a lot of momentum right now.
-
Hot Europe Stock #2 – RWE (RWEOY)
Picked by: Richard Band, editor of Profitable Investing
Strategy: Grow wealthy through conservative long-term investingRWE () is a German utility that has grown far beyond its roots as the old Rhein-Westphalia Electricity Works. Today, RWE is not only the largest power producer in Germany, but also #2 in the Netherlands and #3 in Britain. RWE throws off a generous dividend (3.5 euros per share for 2010), which works out to a current yield of over 5%.
What’s more, because RWE follows a very conservative policy of paying out only 50%-60% of profits, there’s an excellent chance you’ll be collecting a significantly higher dividend in the years ahead. This utility is going to see continued success simply by merit of providing electricity to the region’s top economies.
-
Hot Europe Stock #3 – Nestle (NSRGY)
Picked by: Richard Young, editor of Intelligence Report
Strategy: Bedrock of investments with high returns and low riskNestle () is a Switzerland-based food and beverage company best known for its chocolates. However, the company’s wide range of products include beverages, baby foods, dairy products, breakfast cereals, ice cream, prepared foods, bottled water and pet care products.
For what seems like decades, Americans suffered criticism for being fat and obese while Europeans remained fit and thin. That is now over. French waistlines are bulging, and Nestlé is swooping in with its Jenny Craig diet foods to save the French from themselves. My long-term trend chartsshow that Nestlé shares are selling at a discount to trend. Don’t let inertia prevent you: Initiate a position today to capitalize on Europe’s recovery.
-
Hot Europe Stock #4 – Aixtron (AIXG)
Picked by: 91抖阴, editor of Emerging Growth
Strategy: Small-cap stocks with the best fundamentalsAixtron AG () is one of my Emerging Growth Top 5 stocks for May. This German giant produces equipment used by semiconductor manufacturers. While it’s high tech business is a bit difficult for you to wrap your head around without a PhD, the numbers speak for themselves: AIXG released earnings at the end of April that exceeded analysts’ estimates by a great deal.
Specifically, according to the company’s first-quarter report, AIXG earned $0.42 per share, comfortably above analysts’ expectations of $0.40 per share. The company attributed its success to several factors, including: strong demand for its products, high volumes, and the strength of the U.S. dollar. AIXG’s year-over-year comparison is even more astounding. This year, compared with last, revenues increased 234%! In light of such positive earnings results and in anticipation of another strong year of growth, AIXG’s board of directors increased its yearly guidance to between $860 million and $930 million. That’s a clear sign of growth ahead for this Europe stock.
-
Hot Europe Stock #5 – Paragon Shipping (PRGN)
Picked by: Nancy Zambell, editor of Buried Treasures Under $10
Strategy: Low-priced stocks that have the potential to explodeParagon Shipping () has been kicked around by investors for a while since it’s headquartered at the epicenter of the European debt crisis: In Greece itself. But the fact is that this shipping stock has a lot of room to run once Wall Street stops running scared from anything in the euro zone.
PRGN provides shipping transportation services worldwide. The company engages in the ocean transportation of various drybulk cargos from iron ore to coal to grains. Shipping stocks are great companies to buy for an economic recovery, since they see increased traffic and profits as more goods move about the global marketplace. PRGN should perform very well in the months ahead.
-
Hot Europe Stock #6 – Novartis (NVS)
Picked by: 91抖阴, editor of Blue Chip Growth
Strategy: Long-term blue chip investments with strong fundamentalsSwiss stock Novartis AG () develops and manufactures prescription drugs to treat a wide spectrum of ailments. Its vaccine and diagnostics division manufactures vaccines and blood-screening tools. Novartis’ generics subsidiary, Sandoz, produces generic drugs, as well as active pharmaceutical ingredients. The company’s consumer health unit includes over-the-counter medications, including Benefiber, Excedrin and Theraflu, along with CIBA Vision’s contact lenses and eye care products.
As health care reform has broadened coverage for Americans, we can expect Novartis to see even stronger sales in the months ahead. The stock has grown its EPS in each of the last four consecutive quarterly earnings reports and has shown great long-term potential.
-
Hot Europe Stock #7 – Total (TOT)
Picked by: Richard Band, editor of Profitable Investing
Strategy: Grow wealthy through conservative long-term investingThough there’s a lot of bad press right now for the energy industry on the wake of the traffic Gulf Coast oil rig disaster, that shouldn’t scare you off oil stocks in general. And for my money, one of the best on the market is European giant Total (). Not only does TOT stock offer a lofty dividend, it also offers one of the best drilling records among oil majors.
At the beginning of May, Total reported its revenues improved 33% (up 25% in euros) from the year-ago quarter. Oil production was also up 5%. Crude oil has skyrocketed 165% from its December 2008 low, so I would not invest directly in oil at today’s price. Instead, I favor producers like TOT because its share prices to date reflect only a small portion of the rise in the underlying commodity.
-
Hot Europe Stock #8 – iShares Switzerland ETF (EWL)
Picked by: Richard Young, editor of Intelligence Report
Strategy: Bedrock of investments with high returns and low riskI know, the title is “the best Europe stocks.” But why limit yourself to just one or two if you’re light on funds when you can buy a basket of some of the best Swiss companies in the iShares MSCI Switzerland () ETF? Components include the aforementioned Nestle and Novartis, as well as Roche, Credit Suisse and Zurich Financial among others.
The euro zone still has its troubles ahead as Europe’s collective currency faces some devaluation still. But banking capital Switzerland still enjoys the autonomy of an independent currency and thus has been insulated from a lot of the residual euro fallout.
That makes Swiss companies a good investment for the broader European recovery. This ETF is the best way to play that trend.
-
Hot Europe Stock #9 – Novo Nordisk (NVO)
Picked by: 91抖阴, editor of Global Growth
Strategy: Fast trading of the best ADRs seeing the biggest buying pressureDenmark’s Nova Nordisk () is another great European healthcare stock, and is one of my absolute favorite global investments right now. Novo Nordisk is one of the world’s leading producers of insulin. The company also makes insulin injection devices and diabetes education materials. Its products include Levemir and NovoLog (which mimic natural insulin regulation more closely than human insulin) and FlexPen, a pre-filled insulin injection tool. In addition to its diabetes portfolio, Nova Nordisk also has products in the areas of blood clotting management, human growth hormone regimens and hormone replacement therapies.
The company expects 2010 sales growth of between 6% to 10%, up from its previous guidance of between 5% to 10%, and operating profit of 10%, up from 5%. This higher guidance reflects continuing improvements in its gross operating margins. Novo Nordisk said that its increased guidance is based on expectations for good market penetration for its diabetes drugs.
5 Small Cap Stocks to Buy Now
Small, innovative companies are watching their earnings explode — and they are the next ten-baggers. Investing pro 91抖阴 reveals his secrets to identifying these small cap innovators, plus five of his favorite small cap stocks — download your FREE profit guide here.
