Two Spanish stocks are performing significantly better than other offerings on the stock market. These are two prominent listed companies: ACS and Siemens Gamesa. They have so far become the top performers at the moment, outperforming some companies with substantial market capitalization . Indeed, they have seen the greatest price movement from their yearly lows to their current trading price. Furthermore, their outlook is very positive, according to some of the most influential analysts in the equity markets.
In any case, these are two stocks that should be carefully considered for inclusion in your current investment portfolio in the coming weeks and perhaps even years. This is especially true given that more than half of the stocks listed on the Spanish benchmark index have reached their yearly lows in recent months, coinciding with a return to volatility in equity markets. This is one of the reasons why you should keep an eye on ACS and Siemens Gamesa and consider making a few stock market trades before you go on vacation. You might be in for a pleasant surprise when you return.
In any case, both Siemens Gamesa and ACS have taken the lead in the first half of this challenging semester for the stock market. This momentum has solidified into double-digit gains , something that pleases small and medium-sized investors who want to back a winning horse, as they say in their own stock market jargon. While they may experience some pullbacks in their share prices from now on, this is nothing to worry about; it's a normal and even healthy process as they attempt to reach new levels.
ACS in an unbeatable position
It certainly seems that this year belongs to Florentino Pérez, especially considering his recent corporate moves that have further strengthened the value of the construction company. There's no doubt that 2018 is ACS's year, judging by the way its share price has been performing in the financial markets. It's currently on track to finally break through the difficult barrier it faced just a few months ago at €36 per share . It seems to be only a matter of time before it achieves this goal so eagerly awaited by small and medium-sized investors. However, if you're looking to buy shares, it might already be a bit late to see a significant return on your savings.
From this general perspective, one of the strategies to adopt in the coming days is to take positions in ACS as soon as it comfortably breaks through its upcoming resistance levels. Although the potential for appreciation is not as high as it was just a few weeks ago, this is all due to the upward movements it has experienced in recent trading sessions. In any case, there is no doubt that it is one of the stocks that should be included in a portfolio from this point forward, ahead of some of the most relevant blue chips in the Spanish stock market.
In the portfolio of many brokers
If there's one thing that characterizes its shares right now, it's that they're among the most recommended stocks by various financial intermediaries, both domestic and international. This should inspire confidence if you're considering opening positions in this stock. Beyond other technical and perhaps even fundamental considerations, you can't forget that ACS is currently a safer stock option than others on the Spanish continuous market. This is primarily because it's in a clear upward trend . Therefore, you can take advantage of this exceptional moment in its share price.
One of the most influential factors in its current share price is its expansion into other sectors, such as toll roads, through its recent corporate agreement to acquire a stake in Abertis . This has undoubtedly contributed to its rising share price in recent weeks, as it has led to buying pressure clearly outweighing selling pressure, thanks to the influx of small and medium-sized investors.
Siemens Gamesa in uptrend
Siemens Gamesa is undoubtedly one of the hottest stocks right now. Although this situation is nothing new, if not that on the contrary it has been years after years with continuous increases. Something that is certainly surprising some of the most famous financial analysts. Always under a very impeccable uptrend in all terms and that encourages taking positions despite having a very high price after the last rises that it has experienced in the last trading sessions.
Siemens Gamesa shares are currently trading at €13.80 . However, the market is focused on the €15 level, which is its main resistance level for the medium and long term. A buy recommendation is in place, provided the price doesn't break through certain key support levels. To the point that its technical outlook presents a very favorable scenario for its future. Its strong position is something few other stocks in the Spanish stock market's benchmark index are currently experiencing.
Is it late to open positions?
However, there are also well-founded opinions that believe it is too late to invest in Siemens Gamesa. The reasons given are that its share price is not attractive enough to justify buying its stock, and there is a certain risk of losing money on its stock market transactions. This risk, if present, could deter many small and medium-sized investors, especially those with a more defensive approach who try to avoid higher-risk stocks in the equity markets.
From this general perspective, some of the leading analysts in the stock market believe that Siemens Gamesa is an interesting stock, but one that has been heavily punished. Now, investors should consider whether this is a genuine opportunity and wait for a correction before buying. They even reiterate that the best opportunity was below €10 per share, where the price reduction proved excessive. We are seeing a clash of cultures in the merger with Siemens.
Other valuations to operate
This is certainly another major negative aspect for this stock, which is closely followed by many investors. Especially since its 40-day moving average is still above Siemens Gamesa's share price. This is a bad sign for the stock, outweighing other technical and perhaps even fundamental considerations. Therefore, caution should be the guiding principle for all transactions in the financial markets. Because it's also true that significant sums of money can be lost in some of these movements.
This analysis of Siemens Gamesa clarifies that there's an area where buying positions with a close above €12 can materialize without much difficulty. Furthermore, it's crucial to always place a stop-loss order to protect your positions, as no one can predict exactly where your position might go in the coming days or even weeks. This is especially important if the market doesn't unfold as expected. Don't forget this if you want to avoid potential problems later on.
Monitor the most relevant levels
On the other hand, you can't underestimate the fact that Siemens Gamesa's shares are currently at very important levels to watch. It remains to be seen whether they will ultimately be able to break through these levels and close above €15 per share. This would allow for more confident buying decisions than has been the case so far.
It is very prudent that you assume that the price of this listed company has passed in a short space of time from 9 euros to about 14, where it is positioned in value at the moment. Because it is very true that the corrections that it can develop can be very violent and of course not those desired by the equity markets.