What are the most attractive Spanish companies to invest in on the Dow Jones Sustainability Index?

Last weekend, S&P Global published a review of its sustainability indices, including the popular Dow Jones World Sustainability Index. Spain placed 16 companies in this index out of a total of 321 members (5% of total members). Outstanding people who made it into the Dow Jones Global Sustainability Index are Characteristics of Merlin and Aina (These are the two new additions), Which adds to Those that already existed: BBVA, Santander, Bankenter, Caixa Bank, Inditex, Amadeus, Grifols, Indra, Acciona, Enagas, Endesa, Iberdrola, Redia and Ferrovial. All of them, in the eyes of Standard & Poor’s (the owner of these indices), are among the sustainability leaders in their respective sectors. Now, which of these companies are also core leaders? Visit elEconomista ESG, the green portal of elEconomista.es.

Ten of these 16 listed companies receive a buy recommendation By market consensus compiled by FactSet. And among those that are buying, those that represent the greatest upside potential — with expected stock market movements greater than 20% — are Caixa Bank, Bankenter, Grifols, Acciona and Santander.

Spanish banks are trading near the highs, supported by the high interest rate environment that has favored them in 2023. Ibex Banks, which groups the six entities in the Ibex 35, hit highs in early December that have not been seen since 2018. It is to see how prices reflect The fact that interest rates have already been reached, and that 2024 will bring cuts. You may be interested in: Best Spanish banks to invest in 2024.

but This does not prevent the sector from offering attractive dividend yields and low interest rates at the present time (profit multiples). Given their upside potential, CaixaBank and Bankinter stand out, shall we say, with 36% and 34% respectively. Bankinter is one of the few companies in the entire Ibex 35 to trade negatively in 2023 (down about 6.7%, compared to a 1.5% rise in 2023). Box). Added to this expectation of revaluation are the dividends charged until 2024, which amount to 10.2% in the case of CaixaBank, and 8% in Bankinter. What is Spain’s weight in ESG indicators?
With double-digit roads ahead we also find Santander (approximately 26%) and BBVA (more than 15%). BBVA is having a great year on the stock market, up more than 48%, while Santander is up about 38%. You may be interested in:
Grifols are also among the biggest potential tips and buys., which, according to analysts, should trade approximately 33% higher. For Acciona, for its part, it expects an increase of close to 29%. The company headed by José Manuel Entrecanales has been knocked off the stock market this year, so much so that it has already become the most bearish company on Ibex in 2023, falling almost 21%. Analysts’ recommendations – who advise placing it in the portfolio – only improved as the price deteriorated. Since last December 1, when BNP Paribas changed its value sell to hold, Acciona has not received a single sell recommendation from analysts.
Indra, for its part, which is also a buy, should rise 14% in the stock market Next year to reach its fair price. Already less than 10% is the potential of the new entrants to the world of Dow Jones Sustainability: Merlin Properties and Aena, as well as the potential of Iberdrola. The value of the company headed by Ignacio Sanchez Galan is expected to rise by just over 6%.

(tags for translation) Stock market

Check Also

Alexandre Nascimento: From the textile industry to renewable energy

As our living standards intensify our hunger for energy, especially electricity, the current scenario reveals …

Leave a Reply

Your email address will not be published. Required fields are marked *