TRADING STOCKS IN SPANISH -TOP SPANISH STOCKS TO BUY

Spain is the most populous country in Southern Europe

Spain is the most populous country in Southern Europe. The country is well-known for its rich cultural legacy, ancient civilisation, impressive monuments, vibrant culture, diversified landscapes, and stunning scenic beauty. It’s no surprise that it’s one of the most visited countries in the world.

The World Tourism Organization’s headquarters are in Madrid. However, many investors, particularly those outside of Spain, may be unaware of the country’s publicly traded enterprises. To assist, we have compiled a list of the top Spanish stocks in the utilities, infrastructure, telecommunications, and media sectors, among others.

TOP SPANISH STOCKS TO BUY

Banco Sabadell

Banco de Sabadell SA [BME: SAB] is a financial institution founded in Spain that primarily operates in the banking sector. The Alicante-based group is the fifth-largest Spanish banking group, having activities in Spain, Europe, the Caribbean, the Americas, and Asia.

Sabadell offers personal and retail banking, private banking services, investment funds, insurance products, mortgage, consumer, student, and home improvement loans to individuals and businesses.

1. Banco de Sabadell SA [BME: SAB] recently disclosed a net loss for the fourth quarter, causing its stock price to plummet significantly. The Spanish bank reported a net loss of 15 million euros ($16.5 million) for the fourth quarter, compared to a net profit of EUR80 million in the same quarter last year. Sabadell blamed the loss on Spain’s Deposit Guarantee Fund, a tax payment, and an unusual provision.
2. The good news is that the majority of the variables causing the lower earnings will be one-time. Regardless of the net losses, the bank announced plans to propose an additional dividend of EUR 0.02 per share, bringing the total pay-out for 2019 to EUR 0.04 per share.
3. Purchasing stocks in a firm that are currently undervalued but have a strong growth prospective is always a wise financial move. Sabadell meets both of these requirements, making it an excellent buy prospect.
4. Earnings of Banco de Sabadell are predicted to expand rapidly in the coming years, indicating that the company has bright prospects.

Enagas

Enagas SA [BME: ENG] primarily engaged in the transportation, storage, and regasification of natural gas in Spain and overseas.

Enagas provides gas transportation services through gas pipelines for the primary and secondary transport of gas to distribution points, and operates regasification plants in Barcelona, Huelva, and Cartagena.

1. The corporation imports liquid natural gas on methane carriers and manages underground storage facilities to coordinate the access, storage, transportation, and distribution processes in order to ensure gas supply continuity and security.
2. Despite recent market volatility, Enagas SA [BME: ENG] is a strong purchase candidate. Despite the virus’s menace and the economic difficulties, it is generating, utilities firms are still in high demand. This is why such businesses are often regarded as reliable cash cows for conservative income investors.

The natural gas utility company pays good dividends and is currently trading at a 5-year low.

1. Natural gas will always be in demand, and Enagas makes certain that its natural gas supplies are plenty in order to maintain its customer base satisfied and secure.
2. Enagas has compensated its stakeholders quite well, and its business strategy is solid. Amancio Ortega, creator of Inditex (ITX.MC), recently purchased a 5% interest in Enagas for 282 million euros ($311 million).
3. Enagas also stated that it would acquire Tallgrass Energy in the United States as part of a deal including other investors like as Blackstone and Singapore’s sovereign wealth fund GIC.
4. Despite the market’s current worrying volatility, Enagas should definitely be on your radar as the stock is going to reward investors handsomely once the market rebounds.

Ferrovial [BME: FER]

Ferrovial SA is a major Spanish infrastructure operator and provider of municipal services.Services, Toll Roads, Construction, Electrification, Water, and Mobility are the business segments in which the corporation operates. The corporation employs about 89,968 people and has a global presence in six major regions.

Ferrovial, S.A. [BME: FER] has an amazing track record of lavishly rewarding its shareholders, who have seen the share price climb 73% in three years, well outperforming the market.

1. The stock’s performance has recently dipped, with the stock returning only 52% in the last year, including dividends.
2. The good news for Ferrovial investors is that the company, which specializes in toll roads and airports, will benefit greatly from increased infrastructure privatization in the United States.
3. The proposed concept involves the state leasing an airport to a private operator, with some funding given by state or local pension funds.
4. Because of a lack of competence in the United States, toll roads are generally managed by non-U.S. corporations, and in all likelihood, no domestic bidders will be selected to operate privatized airports.
5. There are several infrastructure businesses that operate toll roads, but just a few specialize in airport operations. Overall, a highly positive picture for Ferrovial, whose earnings are likely to treble over the next five years, signaling that now could be an excellent time to explore further.

Gestevision Telecinco

Gestevisión Telecinco, S.A. [OTCMKTS: GETVF] is a Spanish television network and media production firm based in Madrid,In Spain, the firm and its subsidiaries are involved in the indirect management of a public television (TV) service.The corporation owns seven television stations, invests in film creation, and sells advertising. Furthermore, it owns numerous shares in enterprises in the audio-visual sector, primarily in Spain, but also in other countries.

1. Mediaset Espaa Comunicación, S.A. [OTCMKTS: GETVF] reported net revenues of EUR 946.2 million and a net profit of EUR 211.7 million for the fiscal year, this is the highest net profit outcome in the recent 12 years.
2. On May 29, 2019, Mediaset announced the acquisition of a 9.6% share in the German broadcaster ProSiebenSat.1 Media, with the intention of developing economies of scale and generating viewership that may enable it compete with global players—a move critical for the future of European television.
3. The media organization is also known for seeking for new business prospects aggressively, which can help it provide the greatest content and viewing experience across all platforms.
4. The company is in a unique position to develop a pan-European media and entertainment group, with a leading position in its local markets and wider size to compete in specific nations across Europe.
5. Its excellent in-house production resources help it create interesting content for viewers while also improving its capacity to create and supply material to third parties.
6. In a highly competitive media sector, more consolidation puts it in a stronger position to negotiate better deals with suppliers and develop a first-mover advantage in the market.
7. If you’ve been watching TL5 for a while, now may not be the best moment to buy, given its tremendous growth potential and present cheap stock valuation.

Endesa

Endesa SA [BME: ELE] is a Spanish holding company that generates, transmits, distributes, and commercializes gas and electricity in Spain, Portugal, and North Africa.Endesa is a majority-owned subsidiary of the Italian utility corporation Enel, with 10 million subscribers in Spain and a prominent player in the natural gas marketed generates around 98,000 GWh per year in Spain by combining nuclear, fossil-fuelled, hydroelectric, and renewable resource power facilities. It distributes power to consumption places and provides other energy-related services.

• Endesa SA [BME: ELE] announced net ordinary income of 1.562 billion euros (+3.4%) in 2019.The stock is also profitable in terms of dividends, with a dividend yield of more than 6% and a payment history of more than ten years.
• Endesa’s earnings per share have grown at a rate of 66% per year over the last five years, which is a good indicator for investors because fast expanding EPS makes the dividend sustainable.
• Endesa announced a €2,000 million investment in distribution grid improvements till 2020.The corporation will invest €1,200 million in digitalizing the electrical system and €800 million in modernizing present assets, with the goal of improving supply quality by 20%.
• This will help Endesa maintain its market dominance and boost its stock price.Endesa, S.A. can be a beneficial investment if you are looking for stocks with high returns.
• This will help Endesa maintain its market dominance and boost its stock price.Endesa, S.A. can be a beneficial investment if you are looking for stocks with high returns.

Iberdrola

Iberdrola SA [BME: IBE] is a multinational Spanish electric utility that generates, distributes, trades, and markets power in the United Kingdom, the United States, Spain, Portugal, Italy, France, and Latin America.

The worldwide energy corporation headquartered in Bilbao, Spain, operates through three divisions: Networks, Liberalized, and Renewables. The corporation focuses in sustainable energy and is the world’s largest wind power producer, as well as one of the world’s largest electricity utilities by market value, serving energy to nearly 100 million people.

• Iberdrola’s net profit for fiscal year 2019 grew by 13% to a record €3,406 million. The energy behemoth has recommended a 14% rise in shareholder pay to EUR 0.40 per share.
• In 2022, net profit is expected to range between €3.5 billion and €3.7 billion, and the business is confident in sustaining its shareholder reward policy, which will see dividends grow in accordance with earnings.
• In addition, in January 2020, the company completed the sale of Siemens-Gamesa stock for EUR1.1 billion, with a capital gain of EUR 485 million.
• All of these indicators lead to a positive characteristic for the company, meaning that you should absolutely consider this Spanish stock.

Telefonica

Telefonica, S.A. [BME: TEF] is a multinational telecommunications corporation that primarily provides mobile and landline communication services in Europe and Latin America. Mobile business, fixed wireless, fixed-line telephone business, broadband, subscription television, and digital services are among the services and products offered by the corporation. Based in Madrid, Spain Telefónica is one of the world’s major telecommunications firms in terms of market capitalization and user base.

• Telefonica, S.A. [BME: TEF] reported sales of EUR48.4 billion in the fourth quarter of 2019.In this time, underlying net income and EPS totalled EUR3.6 billion and EUR0.65 per share, respectively.
• Net debt fell 8% from December 2018 to EUR37.7 billion, while capex was 15% higher than revenues.
• The Spanish telecoms behemoth cut around 4,500 jobs in 2019, accounting for roughly 4% of total roles, as it continues to focus its efforts on increasing earnings in a smaller number of key areas, including Spain, Brazil, the United Kingdom, and Germany. The mobile operator also intends to divide its other Latin American operations into a separate entity.
• Telefónica has established an infrastructure business, which comprises its towers, as part of its aim to diversify. And it has made it obvious that it intends to seek external investors to acquire a stake in Telefónica Infra, as the new company is known.
• Telefonica expects an additional €2 billion ($2.2 billion) in revenue from its new business Telefónica Tech by 2022 through the sale of cybersecurity, Internet of Things, big data, and cloud technologies.
• The stock is down due to the COVID-19 situation, thus now is a good time to buy, given the company’s prospects look promising.

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