Wednesday, September 18, 2013

Top Stocks of Spain - Las mejores acciones de España

According to a recent article in the New York Times, the recession in Spain should end before year end. Luis de Guindos, the economic minister, also said that the country's budget deficit target for 2013 should be achieved. Although Spains's unemployment rate was 27% recently, it is predicted to be substantially less in 2014, along with improved economic growth.

Investors who are looking for a way to invest in Spain's recovery have a few options available. First, there is the iShares MSCI Spain Capped Index (EWP), an exchange traded fund that trades on the New York Stock Exchange, and has a goal of tracking the MSCI Spain 25/50 Index. The ETF ha a trailing price to earnings ratio of 13, and pays a favorable yield of 4.1%. Over the last couple years, EWP was up less than 10%, whereas the S&P 500 was up over 40%. Maybe its time for this ETF to move, as it seems to have a resistance level this year at around 33, which it has just broken above, closing at 34.80 today.

Other ways to invest are through individual stocks of companies based in Spain. has turned up a list of a dozen stocks of companies based in Spain but traded in the United States. One example is Banco Santander (SAN), the largest bank in the Eurozone and one of the largest banks in the world. The company has branches in Brazil, Spain, the United Kingdom, Mexico, Portugal, Germany, Chile, Argentina, Poland, the United States, and other countries. The stock trades at 24.5 times trailing earnings and 13 times forward earnings. Earnings spiked 760.7% for the latest quarter on a 49.8% rise in revenues. Dividends which are paid quarterly, provide investors with an annual yield of 8%.

Another Spanish company is Grifols (GRFS), which is a multinational pharmaceutical company that produces blood plasma based products. The stock, which trades on NASDAQ, has a fairly high P/E ratio of 54.9. However, earnings for the latest quarter were up 39.2% on a 7.3% increase in revenues. The company even pays a dividend, and based on what has been paid out this year, works out to around 2.6%.

Information about some of the other Spain stocks, such as P/E ratio, yield, and business, can be found on the free list a

Maybe now is time to take a closer look at the country of Spain and its stocks.

Disclosure: Author did not own any of the above at the time it was written. 

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