FEZ’s bottom stocks
On Wednesday, January 13, 2016, the stocks at the bottom of the SPDR Euro STOXX 50 ETF (FEZ) were BMW, Daimler (DDAIF), Deutsche Bank (DB), SAP (SAP), and Siemens (SIEGY). These stocks fell 5.6%, 3.8%, 3.4%, 2.4%, and 2.3%, respectively. Among all these stocks, BMW emerged as FEZ’s biggest loser.
Reasons behind BMW’s performance
- BMW reported that it will recall its i8 models for a stability control problem. This problem could affect braking control.
- No injuries and deaths are reported as of now.
- The report says that BMW recalled 223 examples of the 2014 i8 for a fuel leakage.
- BMW also reported record sales for 2015 despite turmoil in some markets. But it warned about future challenges in 2016 due to a slowdown in global growth.
BMW is currently trading at 81.02 euros. Its 52-week high is 123.70 euros and its 52-week low is 72.40 euros. The stock returned 11% in 2015. Its current price-to-earnings ratio is 8.73x, which is cheaper than its competitor Daimler.
BMW is currently trading 10% below its 100-day moving average, 15% below its 50-day moving average, and 13% below its 20-day moving average. Recently, the stock fell below its 100-day moving average. The stock is trading in between relative strength indexes of 70 and 30. This shows that the stock is trading in neither overbought nor oversold territory.
Analysts’ estimates indicate an upside of 19% for BMW over the next 12 months from its current levels as of January 13.
To learn more, read FEZ Rose for Second Day as Chinese Market Paused Its Downtrend.