Sunday, April 27, 2014

Top Stocks of Spain from the Spanish Recovery

Spain's Economy Minister Luis de Guindos said that the country's economy will grow by 1.5 percent in 2014. Investors who want ways of taking advantage of Spain's economic recovery can invest in ETFs, such as 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 17, and pays a decent yield of 2.7%. The ETF has a one year total return of over 49%.

As for stocks, 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 18 times trailing earnings and 14 times forward earnings. Earnings jumped 150% for the latest quarter on a 82.6% rise in revenues. Dividends which are paid quarterly, provide investors with an annual yield of 6.5%.
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 61. However, earnings for the latest quarter were up 32.3% on a 5.1% increase in revenues. The company pays a dividend of 2.2%.

Telefonica (TEF) has a P/E of 12.5, and a forward P/E of17. Earnings jumped by an amazing 206% on a 7.8% drop in revenues. The yield is 5.8%.

For a list of all the Spain stocks, that are available to U.S. investors, and has such information as P/E ratio, yield, and business, go to
Disclosure: Author did not own any of the above at the time it was written. 

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