The German stock index DAX was not spared losses this year either. Since the beginning of the year, the leading index has lost over 19%, reflecting the rather pessimistic outlook for the domestic economy. High energy prices are weighing on households as well as companies and their earnings, geopolitical upheavals are fuelling uncertainty.
Some companies have been able to defy the more difficult conditions, one of them being the American mobile communications group T-Mobile. Compared to its main rivals Verizon (-12% YTD) and AT&T (0% YTD), the telecom company's stock is up over 26% year-to-date - not only impressive when compared within the sector, but also a strong performance across industries.
One of the ways to mitigate the probability of a barrier event is to use "last look" BRCs. These have the characteristic that the barrier is not tested until the product expires. This means that the performance of the underlying stocks during the life of the product is irrelevant, regardless of whether they temporarily fall below the barrier. As long as all the underlying stocks are above the barrier at expiration, the investor gets back the entire capital invested - unlike with "classic" BRCs, where the barrier is continuously monitored.
One of the most frequently observed key figures in investment decisions - in addition to fundamental data - is the (expected) dividend yield. It expresses how much dividend an individual share pays in relation to its price and is therefore a good way of comparing different shares. Investors naturally try to achieve the highest possible returns, which is why stocks with high dividends combined with an attractive share price and sound fundamentals are often convincing, especially in longer-term strategies.
Despite all the adversities on the stock markets, various stocks have a positive analyst consensus, so these stocks are expected to outperform the reference market. Particularly in the case of stocks that have experienced major price declines YTD, the comparatively low prices can represent an interesting entry opportunity. At the same time, the increased volatility of these stocks allows for attractive coupons.
Commodity shortages, inflation, rising interest rates - a cocktail that includes a high degree of uncertainty. In this environment, capital protection certificates offer an attractive alternative to a direct investment in the stock market.
According to the Bloomberg analyst consensus, more than 60% of analysts continue to recommend holding the share, and ZKB Equity Research also rates the share as "market-weighted". The price-to-book ratio, which compares the market value of a company with its book value, is 0.35 for Credit Suisse, which may indicate a significant undervaluation.
With sales growth of 20%, rising sales prices and strategically effective acquisitions, Holcim opens the financial year with a strong first quarter. The building materials producer significantly exceeded analysts' consensus estimates, particularly in terms of EBIT. The Solutions & Products segment in particular is expected to continue to grow strongly; in 2022, the segment should account for at least 17% of Group sales, which would correspond to an increase of 3%.
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