3 of the ’18 Magnificent’ European Stocks You Can Buy in the U.S. – InvestorPlace

UBS says investors should forget the Magnificent Seven and look across the Atlantic at the 18 European stocks they have highlighted, which represent about 25% of the market. Stoxx Europe 600 Indexthe exact weight of the Mag 7 when it was initially designed in 2023.

At least with the Mag 18 you have 18 choices instead of just seven. You could say that all you need to do is invest in these 18 stocks and you have a great portfolio.

Is this enough to protect you against market declines? No, probably not.

However, consider what UBS Analyst Sutanya Chedda had to say on this subject:

“Returns for this group of stocks have been comparable to the US Magnificent Seven from 2021 to date, with Europe outperforming in 2022 when the US saw significant declines.”

THE S&P500 is up 7.8% since the start of the year. Here are three of the Mag 18 stocks that outperformed the index in 2024 and are expected to continue to do so in the years to come.

Novo Nordisk (NVO)

Novo Nordisk (NYSE:NVO) is the star attraction of Mag 18. If it were an S&P 500 stock, it would be the 57th best performance of the last 12 months. That’s just outside the top 10%.

Without the success of Ozempic and Wegovy, the Danish pharmaceutical company’s performance would not have been as impressive. Alas, to the winner, the spoils return.

Analysts are reasonably optimistic about its stock. Of the 32 who cover it, 21 rate it as a buy (65%), with a target price of $140.07, 10% higher than where it currently trades.

The consensus estimate for earnings per share in 2024 is $3.29, followed by $4.07 in 2025. In 2023, it was 18.62 Danish crowns ($2.68) per share, or 52% of more than in 2022. Analysts therefore expect its EPS to increase by 52.% over the next two financial years.

While that’s about half of its 2023 yield, it’s still a very healthy two-year stack.

In March, the U.S. Food and Drug Administration approved Wegovy to reduce cardiovascular risk due to obesity. Given the number of overweight people in the United States, this is a logical extension of the weight-loss drug’s label.

Novo Nordisk has a long runway for both of these drugs.

Hermès International (HESAY)

As far as luxury goes, I wanted to go with LVMH (OTCMKTS:LVMUY) thanks to all its major brands. However, down almost 13% over the past year, effectively putting it out of the running, I opted for Hermès International (OTCMKTS:HE SAYS), up 14.5% over the past year and 256% over the last five years.

Hermès was founded in 1837 by Thierry Hermès, who started as a harness maker in Paris. In 1880 his son moved the workshop to larger premises with a store selling custom-made harnesses and saddles.

One hundred and forty-four years later, it generated revenue of 13.43 billion euros ($14.40 billion) and operating income of 5.65 billion euros ($6.06 billions of dollars). Revenue grew 21% in 2023, excluding currency, while operating profit increased 20.3% year-on-year.

In the last fiscal year, Hermès generated adjusted free cash flow of 3.19 billion euros ($3.42 billion), of which 43% was used for dividends and 4% for share buybacks.

On April 25, the company reported its first quarter 2024 results, which included a 17% increase in revenue. The winning categories included leather goods, ready-to-wear and accessories, as well as Hermès jewelry and home products.

Quality luxury products are expected to continue to outperform most other price points in the future.

Total energies (TTE)

Total energies (NYSE:TTE) is one of the largest oil and gas companies in the world. Its shares are up 10% in 2024, 18% last year and 34% over the past five years.

The company plans to move its primary listing from Paris to New York to satisfy U.S. institutional investors, who account for about 47% of its stock. OilPrice.com reported at the end of April:

“We are faced with a situation in which European shareholders either sell or hold, and American shareholders buy. So what is the most practical solution for American shareholders? Do they prefer stocks to be primarily listed in New York or Europe? I think when you ask the question, you have the answer.

Total published its first quarter 2024 results on April 26. Despite falling natural gas prices, the company generated adjusted net income of $5.1 billion in the first quarter, $100 million above Wall Street’s estimate but 22% below one year ago.

Over the quarter, its daily oil production stood at 2.46 million barrels of oil equivalent (boe/d), aided by LNG (liquefied natural gas) in new operations in Brazil and Nigeria. Planned maintenance will result in a year-over-year decline in production during the second quarter of 2023.

The move of the primary listing is expected to drive its share price higher in the days following the move.

As of publication, Will Ashworth did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.