The Zacks Analyst Blog Highlights: Deutsche Lufthansa Aktiengesellschaft, Societe Generale Group, Credit Agricole S.A. and Telecom Italia

For Immediate Release

Chicago, IL – December 21, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY – Free Report), Societe Generale Group (OTCMKTS: SCGLY – Free Report), Credit Agricole S.A. (OTCMKTS: CRARY – Free Report) and Telecom Italia S.p.A. (NYSE:TI – Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday’s Analyst Blog:

4 Stocks to Buy as Eurozone’s Economy Strengthens

The Eurozone’s economy picked up pace over the year’s last quarter, according to data released last week. Additionally, fresh indications emerged that inflation has increased, which comes as good tidings for the ECB. Meanwhile, Germany’s central bank’s president said that the ECB’s decision to reduce the size of its bond purchases indicates its growing confidence in the region’s economy.

Evidence of this nature lends further weight to the view that the Eurozone is fast regaining its attractiveness as an investment destination. Adding stocks of companies from the region looks like a smart option at this point.

Encouraging Data Raises Optimism

IHS Markit’s composite PMI for the region’s service providers and manufacturers remained flat at 53.9 for the month of December. Any reading higher than 50 signifies an increase in economic activity. This reading sent the average for the year’s last quarter above that of preceding quarters, implying that the economy expanded by 0.4% over the third quarter. This is higher than the pace of 0.3% recorded for the quarter ended September.

Additionally, the survey also revealed that businesses increased their prices at the sharpest pace in five and a half years in December. This comes as welcome news to the ECB, which is eager to boost inflation toward the target level of just below 2%. For nearly four years now, the economic bloc’s central bank has fallen short of its inflation target.  

ECB Decision Reflects Increasing Confidence

Meanwhile, on Dec 19, Germany’s Bundesbank’s President Jens Weidmann said the ECB’s decision to reduce the size of its bond purchases is a signal that policymakers believe the region’s economy is improving. Earlier this month, the ECB decided that it would extend its bond-purchasing program at least until December of next year. However, the Eurozone’s central bank also decided to cut the volume of bond purchases from 80 billion euros ($86 billion) per month to 60 billion euros from next April.

According to Weidmann, the decision indicates that the ECB’s governing council believes that the economic recovery in the region has strengthened. Weidmann is a long standing critic of the bond purchase program. He believes that the ECB’s policy stance will loosen automatically as inflation picks up pace, lowering the rate of real interest. Annual inflation has rebounded from the low hit earlier in the year to hit 0.6% in November.

Weidmann also said that keeping interest rates low over the long term was unsustainable. Monetary stimulus may help in rescuing an economy from the doldrums, but it also runs the risk of endangering the health of banks and insurance companies when extended over long periods. 

Our Choices

After having traversed through a particularly difficult period, the Eurozone’s economy is now looking to pick up its pace. Recently released economic data and comments from key central bank figures lend further weight to such a view.

Picking select stocks from the economic bloc makes for a prudent decision at such a juncture. We have narrowed down our search to the following stocks based on a good Zacks Rank and other relevant metrics.

Deutsche Lufthansa Aktiengesellschaft (OTCMKTS: DLAKY – Free Report) operates as an autonomous unit within the Lufthansa Group. Headquartered in Cologne, Germany, it maintains its own stations, handling check-in, ticket sales and other services at all the major international airports.

Lufthansa has a Zacks Rank #1 (Strong Buy). Its earnings estimate for the current year has improved by 2.6% over the last 30 days. The forward price-to-earnings (P/E) ratio for the current financial year (F1) is 4.89, lower than the industry average of 10.35.

Societe Generale Group (OTCMKTS: SCGLY – Free Report) is the sixth largest bank in the Eurozone. The company is based in Paris, France.

Societe Generale’s expected earnings growth of 9.6% for the current year. Its earnings estimate for the current year has improved by 6% over the last 60 days. The stock has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Credit Agricole S.A. (OTCMKTS: CRARY – Free Report) markets a complete range of financial products and services. The company is based in Paris, France.

Credit Agricole has a Zacks Rank #2 (Buy). It has a P/E (F1) of 8.78, which is lower than the industry average of 11.63. Its earnings estimate for the current year has improved by 75% over the last 30 days.

Telecom Italia S.p.A. (NYSE:TI – Free Report) is engaged principally in the communication sector and operates mainly in Europe, the Mediterranean Basin and South America. The company is based in Rome, Italy.

Telecom Italia has a Zacks Rank #2. The company has expected earnings growth of 71% for the current year. It has a P/E (F1) of 10.21, which is lower than the industry average of 14.84.

Zacks' Best Investment Ideas for Long-Term Profit

Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on DLAKY - FREE

Get the full Report on SCGLY - FREE

Get the full Report on CRARY - FREE

Get the full Report on TI - FREE

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report
 
SOCIETE GENL FR (SCGLY): Free Stock Analysis Report
 
CREDIT AGRICOLE (CRARY): Free Stock Analysis Report
 
TELECOM ITA-ADR (TI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.