FEZ’s bottom stocks
On Thursday, December 31, 2015, the stocks at the bottom of the SPDR Euro STOXX 50 ETF (FEZ) were Schneider Electric, Telefonica (TEF), ASML Holding (ASML), Carrefour (CRRFY), and Sanofi (SNY). They stocks returned -2%, -1.9%, -1.8%, -1.7%, and -1.3%. Among all of the stocks, Schneider Electric emerged as FEZ’s biggest loser.
Reasons behind Schneider Electric’s performance
- On December 14, 2015, Schneider Electric’s software business fell. The company is going to buy a majority stake in Aveva for 550 million pounds in cash.
- The company’s electric business is also facing challenges because of lower energy prices.
Schneider Electric’s returns
Currently, the stock is trading at 52.56 euros. Its 52-week high is 75.29 euros. Its 52-week low is 48.57 euros. Its PE (price-to-earnings) ratio is 17.29x. It’s relatively cheaper than its competitor. Its PBV (price-to-book-value) ratio is 1.5x. It’s trading 4% and 5% below its 100-day and 50-day moving averages, respectively. The 50-day moving average is a strong resistance for the stock. In the last four months, the stock struggled to cross its 50-day moving average. The stock returned -13% in 2015.
Analysts’ estimates suggest an upside of 15% for Schneider Electric over the next 12-month period from the current levels as of December 31, 2015. The stock received four “sell” ratings from different brokerages. Goldman Sachs (GS) gave the stock a “neutral” rating.
Read FEZ’s Performance Was Flat in 2015: What Does 2016 Look Like? to learn more.