uploads///Performance of Societe Generale

Société Générale Fell 5.8% and Became FEZ’s Biggest Loser

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Nov. 20 2020, Updated 2:01 p.m. ET

FEZ’s bottom stocks

On Friday, January 15, 2016, the stocks at the bottom of the SPDR Euro STOXX 50 ETF (FEZ) were the following:

  • Société Générale: -5.8%
  • Deutsche Bank (DB): -5.4%
  • Volkswagen (VLKAY): -5.1%
  • Repsol: -4.7%
  • ASML Holding (ASML): -4.5%
  • Daimler (DDAIF): -4.1%
  • SAP (SAP): -4%

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Reasons behind Société Générale’s performance

  • Worldwide, most of the major global investment banks are planning to cut employees and minimize costs due to major exposure to commodities and the oil and gas industry.
  • Due to the slowdown in the global economy and lower demand in crude oil, the oil and gas industries are facing serious challenges to repay their debts. This, in turn, is affecting the profit margins of banks.
  • Ahead of Société Générale’s fourth quarter results, revenues from core income, currencies, and commodities (FICC) businesses could be weak, as they were for JP Morgan (JPM) and Citigroup (C).

Société Générale’s returns

Société Générale is currently trading at 36 euros. Its 52-week high is 48.8 euros. Its 52-week low is 33.4 euros. The stock returned 18% in 2015. Its current price-to-earnings ratio is 7.8x, which is relatively cheaper than its competitors Deutsche Bank and UniCredit (UNCFF).

The stock is currently 15% below its 100-day moving average, 17% below its 50-day moving average, and 12% below its 20-day moving average. The 100-day moving average is a strong resistance point for the stock. The stock has been unable to cross its 100-day moving average for the past six months. The Financial Select Sector SPDR ETF (XLF) is also trading below its 100-day moving average.

Analysts’ estimates

Analysts’ estimates indicate an upside of 33% for Société Générale over the coming 12-month period from its current levels as of January 15, 2016.

In the next part of this series, we’ll look at the performances of FEZ’s oil and gas industry on January 15, 2016.

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