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What's hot and what's not when it comes to European stocks
Thomas Cook almost went bankrupt two years ago but avoided the abyss leading to a 1,200 percent jump in the share price since early 2012.
Return on invested capital has come back to the cost of capital and future growth looks better with summer bookings this year up significantly from last year.
With the European economy moving toward expansion in 2014 Saxo Bank believes the momentum in Thomas Cook could continue and given its fundamental data predicts a sizeable upside to the share price.
And that's why it's on the conviction list, which represents Saxo Bank's ten most under and overvalued European non-financial equities when taking fundamental data and the technical picture into account.
Also on the undervalued list the French car component maker - Valeo. It was hit hard during the financial crisis declining more than 55 percent as revenue contracted in a response distress in the global car industry. Since then, revenue and operating profits are back to new highs and the outlook looks bright with global car sales expanding at healthy growth rates pulled by the US and Chinese market.
But an unjustified valuation and disappointing sales growth puts Danish company Chr. Hansen on the overvalued list.
For more details go to http://www.tradingfloor.com/posts/quant-corner-conviction-list-european-non-financials-1006590191
01:43 minutes
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