European Technology / Growth stocks

Hello,

The European stocks in my portfolio are mainly value stocks or some heavily hit Covid companies that I think have overly corrected eg. Airlines, Telecomms, Utilities, car manufacturers and banks, as well as renewables.
So, I wanted to know what european, growth, technology or digital-related stocks you have invested in and if possible why (why they have potential to grow rapidly), so that I can research them and hopefully invest in some European Tech/Growth/Digital related companies.
Does anyone have any suggestions and reasons for why they have potential to grow rapidly?
If you want to be even more specific, you also specify which European stocks are high risk with very high growth/reward also :smiley:.

My idea is to supplement my core investments with a “European Tech” pie, so any suggestions are welcome. My plan is to come up with a list and then do a quick check to trim it down. A bit like creating my own personal ETF and investing small amounts of money regularly. I already have about 12 companies on a preliminary list (see below).
I know I could just look at the iShares ETF and take its holdings, but I would prefer to get community suggestions to get a feel for what other people think might do well in the future and compare ideas. (I did have a look at it, see here: https://www.ishares.com/uk/individual/en/products/251961/ishares-stoxx-europe-600-technology-ucits-etf-de-fund)

For completeness, the ones that I have currently got in mind are: Nokia, Ericsson, Amadeus IT, Spotify, ASML, Alfen Beheer, Rightmove, Avast, Nel (Hydrogen), Cellnex, Boohoo and Atos. What do you think of these?

Another question, what are your thoughts on the european semiconductors such as ASML, Infineon and STMicroelectronics?

Hopefully this can lead onto a thread discussion on European tech/growth stocks :smiley:.

Note: I realise that the post is quite long so I have highlighted the 4 key sentences/phrases.

Thanks.

4 Likes

Hi @EquityInvestor,

The 12 companies you mentioned are a good selections and I have most of them in my portfolio. One other stock you may want to consider is Adyen NV. They are a payment provider with alot of well-known customers.

Thanks for the suggestion of Alfen Beheer. I have not heard of them but like the stock after doing some research on them.

Finally ASML is a strong growth stock being a leader in extreme ultraviolet lithography for the semi conductor industry. I put it in the same category as Taiwan Semiconductor as a growth stock with huge potential.

2 Likes

Pretty sure Ark invest have shares in Ayden too

Out of interest why purely focusing on EU stocks? More chance of value as it won’t be as inflated as US?

1 Like

Second @Abel on the Adyen, ASML and TSM picks (I own them so might be biased). Maybe ASMI and BESI are other interesting semi stocks as well.

I personally like Flow Traders as well although it’s really high risk. They’re a market maker in the ETP space. They are an atypical finance company because they tend to make more money when volatility in the markets increases. They had a fantastic first half of 2020 with their H120 EPS being €8.25 increasing from €0.71 in H119 which is an astronomical 1062% EPS increase. The dividend paid in 2020 has been €4.55 a share compared with last years €1.35 so also good growth there. Do your own research before investing in them as they aren’t an easy company to fully understand the operations off. Their profits are highly volatile (surprised Pikachu face) so is their dividend.

I also own ASRNL (so do your own research as there’s a seller for every buyer), which is a smaller dutch insurance company. It has a market cap of 4 billion euros so compared to the others it’s relatively small. They have a combined ratio of 92.9% over H12020 which implies they do actually make money with providing insurance. They are way less risky than Flow Traders but still have quite a lot of room for growth through acquisitions (which they have a good track record with) and organically as they have shown in their record last year and close to record this year. They’re also one of the greener insurers as their investments are focused more on sustainability if this is something you’re interested in about.

Sartorius and Fresenius both are European growth stocks in the medical instruments space. They’re both pretty specialised so you would probably be better of doing your own reading on their investor relations pages.

Ocado is a UK online supermarket which has no chain of stores and does all home deliveries from its warehouses. Ocado is a renter of Tritax Big Box which is a real estate company specialised in big warehouses.

I own all of the mentioned stocks and you should never just buy something just on the basis of somebody on the internet talking about it. DYOR.

3 Likes

I have 5 Stocks in LPKF (LPK), a German Laser and Electrics company.

They turned the company into profit in 2018 thanks to a Managerial change and seem to be doing good post COVID.

2 Likes

Thank you all for your suggestions they look good, I will look into them.
If anyone has any more feel free to mention.

The reason why I would like to invest in EU stocks are the following:
-I think in the coming years there may be a shift in the EU to favour “local” tech which may benefit it
-I already have some of the tech firms from the USA in my portfolio and my “ETF pie” also targets the Nasdaq-100
-I think that overall, once the lowest point of the pandemic and subesequent crisis is reached, european stocks will rally more (as they have corrected more) and that might include tech stocks also, I just wanted to have a bit more of a diverse portfolio. Also tech stocks have behaved better during the pandemic.

Note: I still think that at some point there will be a subsequent correction so I am also partially “waiting” for this. In my view there should be a bit of a rally when the USA approves its current Covid-19 additional financial measures and then I am expecting another correction in the stock market. I am not sure, hence why I am still invested, but I keep a significant portion in cash and gold ETFs just in case.

3 Likes

I got plenty of EU stocks, most of them considered Tech.

ASML + Adyen NV -> I am pretty heavy on these
Yandex, Spotify, NXPI -> got some shares, planning to buy more of these.

I don’t know if you can consider Airbus a tech share, it is probably more of an industrial. But I bought a huge bag of PA:AIR during march crash. very happy with it. Always wanted to buy it but always felt it was too expensive.

3 Likes

NXPI’s debt to equity ratio (103.1%) is considered high. but since its share price is undervalued and revenues are expected to grow 77% this year. so it is a good investment.