Signs of change at Novo Nordisk
Related content
Glencore: excellent performance, higher dividend
Glencore, one of the world’s largest diversified mining companies, released its H1 earnings report yesterday, which showed strong results. The company exceeded analysts’ expectations across all key financial lines, and a significant improvement is also evident on an annual basis. Higher commodity prices greatly contributed to this performance, and Glencore also took advantage of the trading opportunities created by the war in Iran. In light of this, management has increased the dividend and announced a share buyback program. For now, we are keeping the stock on our Equity Top Pick List.
Uber: Steady growth wasn't enough this time
Investors have slightly reassessed Uber’s investment case following the Q2 earnings report. Although the company continues to grow rapidly, the widespread adoption of self-driving technology can only yield positive results in the long term—and it requires significant capex. In addition, the acquisition of Delivery Hero will also cost a substantial amount, leaving less money available for share buybacks and potentially resulting in more modest cash generation. In our view, however, it is better for the company to reinvest the money into its operations rather than use it for share buybacks. As a result, shareholders should expect a longer-term investment horizon when it comes to Uber.
An unusually large number of stocks made it onto the watch list this week, so there was plenty to choose from. In the end, we identified two truly outstanding stocks. One is Infineon Technologies, the German multinational semiconductor manufacturer, which broke out of a broad base after a long accumulation phase. The other is Novo Nordisk, a giant in the pharmaceutical industry, which formed a marked reversal pattern after a significant decline.
Best rated European stocks based on momentum ranking
Compelling technical picture
Infineon Technologies (daily): It broke out from a broad base, so 37.5 has now become the initial risk management level. With the help of the accumulation phase, the calculated value could be around 50 at a minimum. It is worth taking advantage of minor declines to buy.
Novo Nordisk (daily): A very strong reversal pattern has been activated thanks to the rise over the last two days. The long downward phase was ended by a head-and-shoulders reversal pattern. This changed the structure of the stock, with buyers taking the initiative. Any retracement can thus be exploited for buying opportunities. The longer-term annual target could be around 625 at a minimum. The stock has also left gaps to the upside, so 312 could be an initial risk management level.
List of stocks with a chance of a turnaround in the coming weeks
Most popular European stocks
The momentum model supports the creation of a technical based stock list that helps to find shorter-term trading opportunities. The model can be used to identify stocks that show reversal signals following more sustained falls/underperformance. We examine one-year, six-month, three-month, one-month and five-day momentum values, which are used to rank the stocks under consideration. The higher a stock is ranked in the order, the better it technically performs relative to the others. The change in the ranking over time is used to determine the life cycle of the stock.
- In the first table, we collect the stocks that show the most attractive picture compared to the others in a given week based on momentum factors, of which those are also presented in a separate chart where a favourable situation can be identified based on additional technical analysis tools.
- In the second table, we list the stocks that are already worthy of being placed in watchlist status. They are not among the best performers, but they have the potential to improve and signal a turnaround in a few days or weeks.
- In the third table, we have also collected the more popular stocks to help identify their position in the momentum order.
The report shows the results of a technical - quantitative based stock screening, which does not examine the fundamental background/value of the companies. For this reason, risk management/position sizing rules should be designed accordingly.
Get more out of your investments!
Global Markets Services
OTP Global Markets offers a broad range of services in the field of local and international money and capital markets.
Read morePrivate Banking Services
Personal care and expertise with OTP Private Banking, along with the knowledge, security, and innovations of a multinational banking group.
Read more