This week we ran a report on the leading value factors powering European stocks and matched that up with the highest quality listed companies on the European markets.
Which companies are looking severely under-priced but which have all the characteristics to be a winner?
Read on to find out.
#1. Tauron Polska Energia (Poland)
This Polish power company provides electricity from conventional sources as well as biomass.
It is well established in the Polish green energy market as well. It sources, distributes and supplies, including natural gas.
It is even involved in trading within the CO2 emissions space.
Tauron is arguably the best quality power stock on the Polish market right now.
It has a market leading balance sheet in a sector where the likes of Energa and ZE PAK are struggling across numerous factors.
The share price has been on a run this year, but it has been sold off a little since late August.
Our analysis is indicating this is an opportunity to pick up stock cheaply.
#2. VEON (Netherlands)
Dutch telecommunications specialist VEON provides mobile and fixed line telecommunications services, spanning voice, data and both fixed and wireless Internet.
It has gone down the road of mobile finance, national and international roaming services, and has brands trading in several fast growth mobile markets in Central Asia, as well as Pakistan, Algeria and Bangladesh.
VEON already scores well in terms of total liabilities and common equity,
It has recently raised earnings guidance for the year with revenue growth projected at 16-19%. VEON shares - also listed on Nasdaq - have been slipping in the last 90 days, and are trading in Europe at just under EUR 0.6.
Our factors suggest this is way too cheap for this stock.
Volume has been small, suggesting many institutions are holding this one for the long term.
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