On Friday, December 4, 2015, the stocks at the top of the SPDR Euro Stoxx 50 ETF (FEZ) were AXA (AXAHY), Daimler (DDAIF), Siemens (SIEGY), and Volkswagen (VLKAY). These stocks rose 3.2%, 2.2%, 1.9%, and 1.8%, respectively.
Things turned around for AXA
AXA is a France-based company engaged in the business of financial protection. The company offers a range of products such as life and saving products, life and health products, and property and casualty products.
On December 3, 2015, AXA announced that it has pledged to pay higher dividends after it won regulatory approval for its new model. This model will help to push down the amount of capital needed to comply with new European standards.
AXA said that it would pay 45%–55% of its earnings as dividends compared to its previous promise of 40%–45%. This news drove the stock’s performance, and it rose 3.2% on December 4, 2015. The above graph compares the performances of AXA and its peer company Allianz from November 2015 onward.
AXA is currently trading at 25.25 euro. Its 52-week high is 26.02 euro, and its 52-week low is 17.56 euro. Its current PE (price-to-earnings) ratio is 13.21x, and its current PB (price-to-book-value) is 1.01x. The stock returned 17% over a three-month time period. It was trading 8%, 6%, and 1% above its 100-day, 50-day, and 20-day moving averages, respectively, on December 4, 2015.
The stock received a “buy” recommendation from Goldman Sachs (GS) on November 23, 2015, with a target price of 29 euro. It also received a “buy” recommendation from Morgan Stanley (MS) on November 3, 2015, with a target price of 28.90 euro.
Performance of Allianz, a competitor for AXA
We’ve already discussed why the insurance industry rose 6.2% on December 4, 2015. Allianz also provided a positive return of 1.4% in the insurance industry.
Allianz is a Germany-based company that is mainly engaged in financial services. It offers a range of products in insurance and asset management. The stock is currently trading at 163.82 euro. Its 52-week high is 170.34 euro, and its 52-week low is 129.58 euro. Its current ratio is 11.59x, and its current PB is 1.21x.
Allianz returned 17% over a three-month time period. It was trading 9%, 6%, and 1% above its 100-day, 50-day, and 20-day moving averages, respectively, on December 4, 2015.
In the next part of the series, we’ll analyze the performances of FEZ’s bottom stocks on December 4, 2015.