Large European companies reported bumper profits over the past two weeks. However, according to strategists at Bank of America, there were more downward than upward revisions of company earnings estimates by analysts. The investment bank said European companies saw a decrease in their earnings per share revision ratio to 0.85 in April, down from 1.12 in March. Analysts tend to downgrade stocks despite companies reporting bumper profits if those earnings are unlikely to grow in the future.
rank high on Bank of America's list. The parent company of Louis Vuitton, Moët & Chandon, and Hennessy said in April that it is set to benefit from China's Covid reopening as the return of travel brings back high-end spenders. shares hit a record high following the results and are up nearly 30% this year. The EPS revision ratio for Novo Nordisk was also in positive territory, thanks to its blockbuster weight-loss drug Wegovy and others in the pipeline. Historically, luxury goods and pharmaceutical stocks have outperformed during periods of high inflation since these companies can raise prices more than others. More broadly, Bank of America said Europe-focused equity funds have been struggling recently.
Portugal Últimas Notícias, Portugal Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
The stock market could become 'untouchable' if the bank crisis spiralsThe stock market could become 'untouchable' if the regional banking crisis continues to spiral, Fundstrat says
Fonte: BusinessInsider - 🏆 729. / 51 Consulte Mais informação »