FEZ’s bottom stocks
On Monday, January 25, 2016, the stocks at the bottom of the SPDR Euro STOXX 50 ETF (FEZ) were UniCredit (UNCFF), Deutsche Bank (DB), Banco Santander (SAN), and Daimler (DDAIF). These stocks fell 6.4%, 6.2%, 4%, and 3%, respectively, on that day. UniCredit emerged as FEZ’s biggest loser among all of these stocks.
Reasons behind UniCredit’s performance
- UniCredit declared that it’s struggling with retail operations in Austria. It’s seeking cost saving of 300 million euros by 2018.
- Due to this issue, the bank announced a restructuring plan in December. It will cut ~3,000 jobs.
- On January 23, 2016, UniCredit’s central and eastern Europe business (EZU) head Carlo Vivaldi will be leaving Vienna for Milan.
- His departure will coincide with the expiry of a contract keeping UniCredit’s central and eastern Europe business in Vienna.
Currently, UniCredit is trading at 3.73 euros. Its 52-week high is 6.6 euros. Its 52-week low is 3.62 euros. The stock returned -4% in 2015. Its price-to-earnings ratio is 10.08x. This is relatively cheaper than Banco Santander.
UniCredit is trading 31% below its 100-day moving average, 27% below its 50-day moving average, and 20% below its 20-day moving average. The 100-day moving average is a strong resistance point for the stock. The stock didn’t cross its 100-day moving average in the last seven months. Analysts’ estimates indicate an upside of 30% for UniCredit over the next 12-month period from its current levels as of January 25, 2016.
In the next part of this series, we’ll look at Deutsche Bank’s performance on January 25, 2016.