In the eyes of our authors, these top stocks could represent interesting investment opportunities for long-term investors in April.
Ralf Anders: Ormat Technologies
Fossil energy is not only dirty, it is also full of conflict. The global energy transition is becoming more and more urgent, especially to improve self-sufficiency. Many regions are not spoiled by the sun and have unfavorable wind conditions. But heat, everyone has that a few kilometers under their feet. And that is not the only reason why geothermal energy will play an increasingly important role in the future. With the advent of the hydrogen economy, the chances of using it are also getting better and better.
Ormat Technologies (WKN: A0DK9X) is an internationally active integrated geothermal group that is also involved in the geothermal power plant in Landau. With complementary technologies for energy recovery and storage, the company can also offer more from a single source than its competitors, which are often much closer. So many reasons to take a closer look at Ormat stock in April.
Ralf Anders does not own any shares in Ormat Technologies.
Peter Roegner: KWS Saat
The topic of possible food shortages is… ahem… on everyone’s lips these days. A beneficiary of this situation could be the one based in Einbeck, Lower Saxony KWS Saat SE & Co. KGaA (WKN: 707400).
The 166-year-old family business (54.4% stake) develops, produces and sells seeds. For example, KWS is the world market leader when it comes to sugar beet and is at the forefront in Northern Europe when it comes to maize and oilseeds. Other business areas are cereals and vegetables.
For the current fiscal year 21/22 (June 30), KWS expects an increase in sales of around 10% to around €1.5 billion. The EBIT margin is expected to return to around 10%. There may also be another increase in the dividend.
KWS is an investment idea for investors looking for an alternative to classic consumer goods stocks in the food sector. Coke, Nestle or danone Searching.
Peter Rogner does not own shares in KWS Saat, Coca-Cola, Nestlé and Danone. Deposits managed by Peter Roegner have shares in Coca-Cola.
Stefan Naerger: ArcelorMittal
Everything is different in April. World politics is upside down like never before and supply chains are on edge. Reason enough for a commodity bet. But neither natural gas nor wheat are on my shopping list. Instead, I was drawn to the number 2 of the world’s largest steel producers: the venerable ArcelorMittal (WKN: A2DRTZ).
But stop! Certainly this is not a bet on tanks, aircraft carriers or other war equipment. Because since the beginning of 2021 I have been looking in awe at the futures markets of the United States. Like almost no other commodity, merchant steel traders’ net positioning rose to new highs.
For me the thing is clear: the world wants and needs more steel. And ArcelorMittal is one of the few companies that can supply this coveted material in gigantic quantities.
Stefan Naerger does not own ArcelorMittal shares.
Hendrik Vanheiden: PayPal Holdings
Companies with high growth rates and high valuations have not been popular in the stock market in recent months. I believe that along with the partially justified price crashes of some unprofitable high-flying companies, the share prices of real quality companies have also been punished beyond measure. One of these companies is PayPal Holdings (WKN: A14R7U).
The share price is now lower than before the start of the corona pandemic, while quarterly sales (+39%) and profits (+38%) have grown significantly in the last two years. This growth is weakening, also because the collaboration with eBay it’s finished. In 2022, however, sales are still expected to increase between 15% and 17%. With a P/E ratio of 25 (as of 03/26/22), there could now be a good entry price in one of the leading companies in the growth area of online payments.
Hendrik Vanheiden does not own shares in eBay and PayPal Holdings.
Frank Seehawer: Berkshire Hathaway
My top actions for April 2022 are Berkshire Hathaway (WKN: A0YJQ2).
The holding company, which is now 91-year-old Warren Buffett, has more than $140 billion in cash. In addition to its $350 billion investment portfolio, Berkshire Hathaway also owns stakes in major insurance, transportation, energy and industrial companies. So there is a great substance.
In the past, the keen eye of the Berkshire investment team has consistently outperformed the S&P 500, averaging nearly 10% a year. Yields have lagged a bit in recent years and growth stocks have outperformed. The picture now appears to be changing in favor of value stocks, which are a Berkshire Hathaway specialty. The change should also be good for Berkshire Hathaway shares.
Frank Seehawer owns shares of Berkshire Hathaway (B shares).
Caio Reimertshofer: Visa
In times of rising inflation, my pick for one of the best stocks in April is surprising visas (WKN: A0NC7B). The company, which specializes in credit cards, offers natural compensation for inflation due to its business model. While other companies have to try to pass on additional costs to their customers by raising prices, Visa automatically earns more with a higher rate of inflation.
The reason for this: Visa keeps a percentage of the volume of transactions processed. So if the value of a customer’s assets increases in a transaction, Visa’s relative share also increases accordingly.
In addition to this practical feature, the company has a huge global network of credit cards, which should continue to benefit from further digitization in the future. So if you want to add some quality to your deposit in April, you should take a look at Visa.
Caio Reimertshofer does not own any shares in Visa.
Henning Lindhoff: Autolive
These days we can find some strong companies at cheap prices. autoliv (WKN: 906926) is definitely one of them in April. Since the beginning of the year, the share price has fallen by 25.1%. The price-earnings ratio is now 15.6.
The car supplier benefits from its dominant position in the market for airbags and seat belts. More recently, Autoliv was able to secure around 50% of all corresponding orders in its markets. Without a doubt, the next few months will not be easy. Rising raw material costs and supply chain issues are also weighing on Autoliv.
But in the long term, the growth story remains intact. Safe and mobile vehicles will also be needed after the crisis. At the current price of EUR 70.38 (as of March 25, 2022), the stock is significantly undervalued. I consider realistic an increase in value of around 30%.
Henning Lindhoff does not own any shares in Autoliv.
Christof Welzel: Domino’s Pizza Group
Domino’s Pizza Group (WKN: A2AHL0) owns and operates as a franchisor of 1,227 stores in the UK and Ireland (as of end 2021). Until 2012 it operated under the name Domino’s Pizza UK & IRL. Domino’s Pizza was established in 1960 and is based in Milton Keynes (North London).
In addition to all kinds of pizzas, Domino’s Pizza Group also sells pasta and chicken dishes, desserts, drinks and a wide range of vegan products. The business and stocks are relatively crisis-proof. For example, profits continued to rise even during the crisis years of 2001, 2002 and 2008. The products are not very expensive, which makes them affordable for the masses in difficult economic times.
Christof Welzel does not own any shares in Domino’s Pizza Group.
The Top Stocks for April article first appeared in The Motley Fool Germany.
The Motley Fool owns shares and recommends Berkshire Hathaway (B shares), PayPal Holdings, and Visa. The Motley Fool recommends Domino’s Pizza Group, eBay, and Nestle and the following options: $200 January 2023 long calls on Berkshire Hathaway (B shares), $62.50 April 2022 eBay short calls, January 2023 at $200 on Berkshire Hathaway (B shares) and January 2023 short calls $265 on Berkshire Hathaway (B shares).
Motley Fool Germany 2022