© Reuters. Top stocks for December
Our authors believe that these top December stocks could represent exciting investment opportunities for long-term investors.
Ralf Anders: Swissquote
Swiss quote (WKN: 938312) is a solidly established player among Swiss financial services providers. As an innovative market leader in online banking, the company manages to hold its own against ambitious competitors. For example, while former challenger Strateo has long since given up, Swissquote has been successfully expanding abroad for several years. With this year’s acquisition of Keytrade Bank Luxembourg, the company is accelerating its European offensive.
At the same time, Swissquote is consistently expanding its range of services. From the smart banking app Yuh for younger customers, which was created in partnership with the conservative PostFinance, to the trading and betting of cryptos to comprehensive support for sustainable investing, there is something for everyone. Like many of its competitors, Swissquote is currently still struggling with headwinds. But the share price has fallen so sharply in 2022 that it could be worth taking a closer look at this fintech powerhouse in December.
Ralf Anders does not own any Swissquote shares.
Caio Reimertshofer: Alphabet (NASDAQ:)
A poor economic outlook is currently weighing on the stock alphabet (WKN: A14Y6H). In difficult economic times, companies reduce their advertising budgets. As Alphabet relies heavily on advertising revenue from Google search and YouTube, it has a direct impact on the group’s share price.
A long-term problem? I do not think. After all, Alphabet is excellently positioned both as a search engine and as a video streaming service with their respective companies. Finally, we know that when there is an economic downturn, there is usually an upswing again.
Not to be forgotten is the continued double-digit growth in the Google Cloud segment. Going forward, this business should make a significant contribution to Alphabet’s profitability. Overall, I think Alphabet’s share price is currently fairly valued relative to the opportunity.
Caio Reimertshofer owns shares in Alphabet (C shares).
Peter Roegner: IBU-tec advanced materials AG
The one based in Weimar IBU-tec advanced materials AG (WKN: A0XYHT) operates in the chemical industry. The company has know-how in thermal process engineering, chemistry and mineralogy and develops its own products and materials according to customer specifications.
IBU-tec is active in promising areas such as battery materials for energy storage and electromobility, green economy (such as CO2-reduced building materials, rare earths, stationary energy storage) and medical technology (such as artificial joints and dental prostheses).
In 2001, the current CEO, Ulrich Weitz, took over the company; his family is still involved in about a third.
In 2022, IBU-tec expects a turnover of around 56 million euros. In 2025, it should already be between 102 and 130 million euros – so the signs point to growth that is also profitable.
Peter Røgner owns no shares in IBU-tec advanced materials AG.
Frank Seehawer: Munich Re
My top stock for December 2022 is this Munich Re (WKN: 843002). Reinsurance’s shares have long been a basic investment for me.
It is now becoming clear that Munich has a lot to offer in the current crisis environment. The year’s forecast was confirmed again with the 3rd quarter figures. A net result of 3.3 billion euros is therefore expected, which corresponds to a significant increase compared to the result of the previous year.
In particular, the weak euro and the rapidly increasing return on reinvestment are proving to be anchors for stabilization. There is a clear tailwind from the premium income, which can now clearly increase by double digits. Annual sales of EUR 67 billion. is conceivable. The dividend can also increase further.
Frank Seehawer owns Munich Re shares.
Henning Lindhoff: Celanese (SNEEZE:)
Celanese (WKN: A0DP2A) is a well-known player in the chemical industry and is considered to be the world’s largest producer of acetic acid and vinyl acetate. And the Texas-based company continues to expand.
A few days ago, the management around CEO Lori Ryerkerk announced the acquisition of the Mobility & Materials business from DuPont (NYSE:). Celanese thus acquires an extensive portfolio of thermoplastic elastomers and global production facilities. The acquisition can pay off for Celanese in the short term and will generate synergies in the long term.
With the exception of the Corona year, Celanese has grown reliably in recent years. The return on assets of 8.2% is excellent in an industry comparison. The current price-earnings ratio of 6.8 (as of 11/25/22) in no way reflects the strength of this overall package.
Henning Lindhoff does not own Celanese shares.
Henrik Vanheiden: Lindt & Sprüngli
In the coming Christmas season, I will again eat tons of chocolate from Lindt & Sprüngli (WKN: 859568). And the Swiss company’s chocolate also seems to be doing well in the rest of the world.
After setting new records for sales and EBIT in 2021, the strong growth will continue this year. In the first half of 2022, organic sales increased by 12% and EBIT by 33%.
With its premium brand and regular product innovations, Lindt manages to constantly expand its global market share. I see great growth potential, especially outside Europe (last 51% share of sales). PER of 48 is very high compared to the long-term sales growth target of 6 to 8% (as of 11/25/22). But quality has its price – this applies to both stocks and chocolate.
Hendrik Vanheiden does not own any shares in Lindt & Sprüngli.
Christof Welzel: Laboratory Corporation of America (NYSE:) Holdings
Laboratory Corporation of America Holdings (WKN: 895308) is one of the largest providers of medical laboratory testing in America and employs approximately 75,000 people. Customers include doctors, hospitals, pharmaceutical companies, researchers and patients who make decisions based on the results.
The company has very good financial figures. In the period 2012 to 2021, sales increased from 5,671 to 16,121 million US dollars. Profit increased from 583 to 2,377 million US dollars. The company’s profit margin and return on assets averaged 9.4% and 6.9% respectively during this period. The laboratory has a high equity ratio of 51%.
Many valuation methods currently indicate an undervaluation.
Christof Welzel does not own shares in Laboratory Corporation of America Holdings.
The article Top Stocks for December appeared first on The Motley Fool Germany.
Suzanne Frey is a director at Alphabet and sits on the board of The Motley Fool. The Motley Fool owns shares in and recommends Alphabet (A and C shares).
Motley Fool Germany 2022
This article first appeared on The Motley Fool