We recently published a list of the top 10 most profitable European stocks to invest in. In this article, we’ll take a look at how NXP Semiconductors NV (NASDAQ:NXPI) stands compared to other profitable European stocks.
After the US presidential election, the global economy could face a trade tariff woes as the Trump administration is expected to accelerate the trade war. China and Europe in particular are counting on President Trump’s trade policies to potentially escalate the trade war. Additionally, the growing turmoil surrounding Germany’s upcoming snap elections is a sign of concern for investors. Since the US election, European stocks have fallen, capital outflows have increased, and the euro has weakened against the US dollar.
Philip Lane, chief economist at the European Central Bank, said global economic output would suffer significant losses if global trade became more strained. “Trade fragmentation involves significant production losses,” Lane said in a speech in Amsterdam. Lane estimates the potential hit to global output would be 2% if partial trade restrictions were imposed, and almost 10% if a full ban were imposed.
Furthermore, major banks such as JPMorgan, Goldman Sachs, and Citi have indicated that the euro is one of the currencies most vulnerable to President Trump’s tariff policies. Given the region’s manufacturing exports and dependence on China, Europe could be exposed to trade tariffs.
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UK inflation fell markedly to 1.7% in September, falling just below the ECB’s 2% target for the first time since April 2021. On November 7th, the Bank of England announced a 25 basis point interest rate cut, bringing the key rate to 4.75%. The Bank of England has so far cut the rate by a total of 75 basis points to 3.25% in 2024. Investors expect the central bank to cut rates further at its next meeting in December.
There are some interesting stocks in the European stock market that investors may want to have in their portfolios to avoid concentration in US assets. The pan-European STOXX Europe 600 index has fallen nearly 2% since the US presidential election, but as of November 23, the index was up 11% from last year.
With this in mind, let’s take a look at how profitable NXP Semiconductors NV (NASDAQ:NXPI) has been over the years.
A top view of the arrangement of semiconductor chips and electronic components.
our methodology
To create a list of the top 10 most profitable European stocks to invest in, we scanned European stocks through Finviz Screener using two metrics. We shortlisted stocks with trailing 12-month net income (TTM) of at least $1 billion and a five-year compound annual growth rate (CAGR) of net income of at least 15%. From that list, we narrowed down our choices to the 10 stocks that analysts believe will rise the most. This list is ranked by analysts’ average upside potential as of November 22nd.
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