In this article, we discuss 10 best Italian stocks to buy now. If you want to read about some more Italian stocks, go directly to 5 Best Italian Stocks To Buy Now.
Italian stocks have taken a beating in the past few months on the back of an uncertain political situation in the country and the reliance it has on Russian energy imports. The latter part is important since European nations are proceeding forward with a bold plan to restrict business with Moscow in a bid to ease the crisis in Ukraine. In this volatile environment, hedge funds have been upping their bets against government bonds in Italy as well, hoping to profit from a looming global financial crisis that might hit Italy harder than other nations.
Data from S&P Global Market Intelligence indicates that the value of bonds borrowed by investors to wager on a fall in bond prices in Italy hit the highest level seen since January 2008 in August this year. It is not only hedge funds that are forecasting a meltdown in Italy. The International Monetary Fund (IMF) has also warned that a European ban on Russian energy would lead to a 5% contraction in the Italian economy, in addition to similar contractions in three other European nations unless alternative supplies were arranged.
Traditionally, investors borrow debt expecting the price will decline before it is time to buy back the debt. Bond yields move inversely with prices. In June, the 10-year bond yield in Italy breached 4% for the first time since 2014. This came on the heels of reports that the European Central Bank (ECB) would start raising interest rates for the first time in 11 years. However, there are still some investors who are avoiding shorting Italian bonds, like Decio Nascimento of Norbury Partners, who believes the short debts are like playing a game of chicken with the ECB.
These uncertain conditions have created a buying opportunity for investors who wish to pick up the shares of solid Italian businesses at discounted prices and reap the rewards later. Some of the best stocks to buy in this context include energy giants such as Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP) since these firms are set to benefit from the energy crisis in Europe that has pushed prices to new highs and also resulted in new orders from European businesses that are pivoting away from Russia.
Our Methodology
The companies that have deep links with the Italian economy were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Italian Stocks To Buy Now
10. Eni S.p.A. (NYSE:E)
Number of Hedge Fund Holders: 8
Eni S.p.A. (NYSE:E) engages in the exploration, development, and production of crude oil and natural gas. It is one of the best Italian stocks to invest in. The firm is considered one of the seven super major oil companies in the world. The annual revenue for the company in 2021 was 76.6 billion euros. It employs more than 31,000 people and one of the major shareholders of the company is The Vanguard Group. Eni S.p.A. (NYSE:E) operates in 69 countries. Some of the major competitors of the firm are BP, TotalEnergies, LUKOIL, Chevron, and Engie Portugal.
Eni S.p.A. (NYSE:E) recently posted earnings for the second quarter of 2022, reporting sales of EUR 31,556 million. The revenue over the period was EUR 31,809 million, net income was EUR 3,815 million, and basic earnings per share came in at EUR 1.08.
At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $137.7 million in Eni S.p.A. (NYSE:E), compared to 8 the preceding quarter worth $128.8 million.
Just like Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Eni S.p.A. (NYSE:E) is one of the best Italy-related stocks to buy right now according to hedge funds.
9. Natuzzi S.p.A. (NYSE:NTZ)
Number of Hedge Fund Holders: N/A
Natuzzi S.p.A. (NYSE:NTZ) engages in the design, manufacture, and marketing of leather and fabric upholstered furniture through its own and franchised stores worldwide. It is one of the top Italian stocks to invest in. On September 19, the firm announced that it would soon open its store in the capital of Ukraine, Kiev. The project was started in 2021 but has not been finished yet due to the Russian invasion of Ukraine. This store would be the third store in Ukraine and 61 in the emerging market region for the firm.
Natuzzi S.p.A. (NYSE:NTZ) was founded in 1959 by Pasquale Natuzzi. It designs, produces and markets sofas, armchairs, and living room accessories. The annual revenue for the firm in 2021 was $12.761 billion. It employs more than 4,262 people and one of the major shareholders in the company is Kanen Wealth Management LLC.
Natuzzi S.p.A. (NYSE:NTZ) reported that sales for second quarter 2022 stood at EUR 35,456 million, the net income was EUR 116.9 million, and the net loss was EUR 1 million. The basic earnings per share came in at EUR 0.1.
8. Genenta Science S.p.A. (NASDAQ:GNTA)
Number of Hedge Fund Holders: N/A
Genenta Science S.p.A. (NASDAQ:GNTA) is a clinical-stage biotechnology company that engages in the development of hematopoietic stem cell gene therapies for the treatment of solid tumors in Italy. It is one of the premier Italian stocks to invest in. On July 25, investment advisory HC Wainwright published a bullish thesis on the firm, saying that the new technology of the company provided advantages by differentiating elements over other cellular therapies for cancer.
Genenta Science S.p.A. (NASDAQ:GNTA) focuses on the development of lentivirus-based gene and cell therapies for the treatment of cancer. A major shareholder of the company is UBS Securities LLC. Some of the major competitors of Genenta Science S.p.A. (NASDAQ:GNTA) include Candel Therapeutics, Axtell Health, and Achilles Therapeutics.
7. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 18
STMicroelectronics N.V. (NYSE:STM) designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It is one of the elite Italian stocks to invest in. On October 5, the firm revealed that it was planning to build an integrated Silicon Carbide substrate manufacturing facility in Italy to support the rising demand from customers for Silicon Carbide devices across industrial and automotive applications. The construction of the facility is expected to incur capital expenditure of EUR 730 million.
STMicroelectronics N.V. (NYSE:STM) posted earnings for the second quarter of 2022 on July 28, reporting earnings per share of $0.92, beating market estimates by $0.12. The revenue over the period was $3.8 billion, up 28% year-on-year.
Among the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm Woodline Partners is a leading shareholder in STMicroelectronics N.V. (NYSE:STM), with 3.2 million shares worth more than $99.8 million.
In its Q3 2021 investor letter, Saturna Capital, an asset management firm, highlighted a few stocks and STMicroelectronics N.V. (NYSE:STM) was one of them. Here is what the fund said:
“STMicroelectronics N.V. (NYSE:STM) has a goal of becoming carbonneutral by 2027, and in 2020 reported that their greenhouse gas emissions were down 19% over the previous year. In 2020, STMicroelectronics was the only semiconductor company with targets approved by the Science Based Targets Initiative for limiting warming to 1.5 degrees Celsius, and their 2027 net-zero goal is recognized as one of the most ambitious in the industry. As greenwashing presents a growing concern within the ESG community, and as more and more funds engage in re-branding exercises that have little to do with pursuing sustainable investment practices among others, our definition of sustainability includes financial sustainability, most often demonstrated by intelligent capital allocation leading to solid cash flows that can sustain a business without resorting to excessive leverage.”
6. Telecom Italia S.p.A. (OTC:TIIAY)
Number of Hedge Fund Holders: N/A
Telecom Italia S.p.A. (OTC:TIIAY) provides fixed and mobile telecommunications services in Italy and internationally. It is one of the major Italian stocks to invest in. The business provides telephony services, including local and long-distance calls, satellite communications, Internet access, and teleconferencing. The domestic business consists of voice and data operations in Italy for retail and wholesale customers on fixed and mobile networks, international wholesale through Telecom Italia Sparkle, and information technology goods and services provided by the Olivetti group.
The annual revenue for Telecom Italia S.p.A. (OTC:TIIAY) in 2021 was EUR 15.3 billion. The company employs more than 51,000 people and Vivendi is one of the major shareholders of the communications giant.
Along with Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and ConocoPhillips (NYSE:COP), Telecom Italia S.p.A. (OTC:TIIAY) is one of the best Italy-related stocks to buy right now.
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Disclosure. None. 10 Best Italian Stocks To Buy Now is originally published on Insider Monkey.
