Four European Stocks Worth a Look Now (DLPH, ICLR, IR, LYB)
This weekend's Barron's features an article that suggests investors seeking bargains should look to Europe, despite the economy climate there. Here is a quick look at four stocks of European companies traded on U.S. exchanges that have seen their share prices climb more than 50 percent year to date. They are Delphi Automotive (NYSE: DLPH), ICON (NASDAQ: ICLR), Ingersoll-Rand (NYSE: IR) and LyondellBasell Industries (NYSE: LYB).
Shares of this U.K.-based auto parts maker are trading about 53 percent higher year to date and reached a new 52-week high on Friday. This despite its previous warning of fourth-quarter weakness. The company sports a market capitalization near $10.8 billion. Its price-to-earnings (P/E) ratio is about 9. The long-term earnings per share (EPS) growth forecast is about 16 percent, and the return on equity is about 61 percent. Short interest is near one percent of the float. All but two of the 15 analysts surveyed by Thomson/First Call who follow the stock recommend buying shares; five of them rate it a Strong Buy. Their mean price target, or where they expect the stock to go, is now more than 14 percent higher than the current share price. The stock has outperformed competitors Dana Holding (NYSE: DAN) and Magna International (NYSE: MGA), as well as the S&P 500, over the past six months.
This research company's shares are almost 60 percent higher year to date, and they hit a number of 52-week highs since posting better-than-expected quarter results at the beginning of the month. The Dublin-based company serves the pharmaceutical, biotechnology and medical device industries and has a market cap near $1.6 billion. Its long-term EPS growth forecast is more than 18 percent. The forward earnings multiple is greater than the industry average P/E ratio, but so is its operating margin. Shares sold short represent more than two percent of the float, but short interest has been falling since June. Ten of the 13 analysts surveyed rate the stock at Buy or Strong Buy; none recommends selling shares. The mean price target represents about seven percent potential upside and would be a level shares have not seen since 2010. Over the past six months, the stock has outperformed competitor Covance (NYSE: CVD).
This maker of industrial and commercial equipment and machinery saw its share price pop more than six percent in the past week, approaching the 52-week high hit earlier this month. Shares are trading more than 65 percent higher than a year ago. The company is headquartered in Dublin, is an S&P 500 component and has a market cap of more than $14 billion. The long-term EPS growth forecast is more than nine percent, and the return on equity is almost 14 percent. Ingersoll-Rand has topped consensus EPS estimates in recent quarters. It has a dividend yield of about 1.3 percent. Short interest is about two percent of the float, the highest it has been since mid August. Only eight of the 22 analysts polled recommend buying shares. Their mean price target is only about two percent higher than the current share price. The stock outperformed competitor Johnson Controls (NYSE: JCI) and the broader markets over the past six months
Shares of this Dutch chemicals company have pulled back more than nine percent in the past month. But the stock is still up almost 70 percent from a year ago. The $27.9 billion market cap company is headquartered in Rotterdam and is also an S&P 500 component. Its long-term EPS growth forecast is more than eight percent, and the return on equity is more than 18 percent. The P/E ratio is about 14. The company recently declared a special dividend, and its dividend yield is near 3.3 percent. Short interest is about one percent of the float. The analysts feel shares have some room to run as their mean price target indicates potential upside of more than 18 percent. That target would also be a new multi-year high. Over the past six months, the stock has outperformed the likes of Dow Chemical (NYSE: DOW) and DuPont (NYSE: DD), as well as the S&P 500.
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