In this piece, we will take a look at ten best Italian stocks to invest in.
Italy’s economy has shown remarkable resilience in the face of recent crises, but its growth is now slowing due to tighter financial conditions. As the world’s eighth-largest economy and the third-largest in the European Union, Italy has consistently been a significant player in the global economic landscape. In 2022, its GDP reached $2.17 trillion, with a per capita income of $36,810. Despite facing multiple economic challenges such as rising energy costs and inflation, Italy’s economic growth in 2022 stood at 3.7%. This resilience was fueled by strong fiscal support, gains in competitiveness, and a return to pre-pandemic levels of productivity by mid-2021. However, as of mid-2023, the economy has started to feel the effects of higher interest rates, weakening global export demand, and the gradual rollback of pandemic-era fiscal support.
In 2023 and 2024, economic growth is expected to remain below 1%, signaling a shift in momentum after the initial recovery from the COVID-19 pandemic. The country has been heavily impacted by the euro area’s monetary tightening, which has increased borrowing costs for households, businesses, and the government. Lending rates for households and businesses have surged by around 3 percentage points since mid-2022. This has led to a slowdown in credit growth, which has turned negative, and a cooling of the housing market. While Italy’s banking sector remains well-capitalized and better prepared to absorb shocks compared to the past, the significant holdings of sovereign debt by banks and insurance companies pose potential risks, especially as economic growth continues to slow.
The energy crisis has played a central role in shaping Italy’s economic trajectory. Initially triggered by global disruptions in energy supply, the crisis led to inflationary pressures that eroded household purchasing power. Large-scale fiscal support from the government helped mitigate the impact, allowing real GDP to bounce back to pre-pandemic levels. However, the inflation that followed the energy shock, coupled with rising interest rates, has placed a strain on household incomes, and businesses are facing higher borrowing costs, reducing investment and expansion plans. The effects of these developments are visible in several key economic indicators, with GDP growth projected at a subdued 0.7% in 2023 and 2024, increasing marginally to 1.2% in 2025. Meanwhile, the unemployment rate is expected to hover around 7.6% to 7.8%, reflecting stable but not significant improvements in labor market conditions.
The Italian government has responded to these challenges with a broadly neutral fiscal policy. Much of the emergency support related to the energy crisis has been phased out, but initiatives like the National Recovery and Resilience Plan (NRRP) continue to provide economic support. The NRRP is a cornerstone of Italy’s post-pandemic recovery strategy, aiming to address structural weaknesses in the economy while fostering digitization, innovation, ecological transition, and social inclusion. With a total value of €191.6 billion in loans and grants, the NRRP is the largest recipient of the European Union’s pandemic recovery fund. As of September 2023, nearly half of the allocated funds had been disbursed, with further tranches contingent on Italy meeting various economic and administrative milestones. However, there have been delays in spending the allocated funds, underscoring the need for more efficient implementation and monitoring.
One of the key concerns for Italy’s economy is its high public debt, which stands at 141.4% of GDP in 2023, one of the highest in the OECD. Without policy changes, this figure is expected to remain at similar levels in 2024 and 2025, albeit with slight declines. The Italian government faces immense fiscal pressures, including rising costs related to an aging population and the increasing need for investments in climate change adaptation and mitigation. Public expenditure on pensions alone is substantial, and reforms to reduce early retirement schemes and de-index high pensions could help alleviate some of the burden in the near term. However, longer-term solutions, including tax reforms and spending adjustments, are necessary to ensure the sustainability of Italy’s public finances. The ongoing tax reforms, which aim to tackle tax evasion, promote digital payments, and reduce the erosion of the income tax base, could help address some of these fiscal pressures. Shifting taxes from labor to inheritance and property could also create a more growth-friendly tax structure, providing additional revenue while fostering economic inclusiveness.
Italy’s economic challenges are not limited to fiscal imbalances. The country continues to face difficulties in boosting productivity growth and increasing labor market participation, particularly among women and young people. Labor market participation of women in Italy remains one of the lowest in the OECD, and despite improvements, youth employment prospects are also lagging behind other developed nations. Expanding technical tertiary schools, such as ITS Academy, could improve employment opportunities for young people, while increased access to early childhood education and stronger paternity leave incentives could enhance female labor market participation. In addition to labor market reforms, Italy must also address the long-standing issues of bureaucratic inefficiencies and legal bottlenecks that have hampered both public and private investment. Ongoing reforms to the civil justice system and public administration, which aim to streamline processes and improve accountability, are essential for raising investment levels and productivity in the long run.
In this complex economic landscape, Italy remains an attractive destination for investors. The country is the EU’s third-largest consumer market, with a population of approximately 60 million people. The industrial heartland in the northern regions, stretching from Turin to Venice, is one of the most prosperous and industrialized areas in the world, generating over 50% of Italy’s national income. This concentration of industrial activity, combined with Italy’s position as a key player in sectors such as industrial equipment, renewable energy, food and beverages, software, IT services, and aerospace, provides numerous opportunities for investors looking to capitalize on the country’s economic strengths.
In 2022, Italy recorded a total of $46.2 billion in foreign direct investment (FDI) in the United States, supporting nearly 100,000 American jobs. Top industry sectors for Italian FDI include industrial equipment, food and beverages, and renewable energy. Similarly, U.S. investment in Italy, which totaled $26.1 billion in 2022, is concentrated in sectors like manufacturing, energy, food and beverages, and IT services. The robust industrial relationships between Italy and the U.S. in aerospace and automotive industries highlight the depth of opportunities for cross-border collaboration and growth.
Despite these positives, structural challenges persist, including regional disparities between the industrialized north and the less developed southern regions, known as the Mezzogiorno. With 3.7 million small and medium-sized enterprises (SMEs), many of them family-owned micro-enterprises, accounting for 75% of employment and one-third of GDP, Italy’s economy relies heavily on the vitality of its SMEs. However, the ability of these businesses to grow and thrive is often limited by the same bureaucratic and legal inefficiencies that plague larger enterprises.
In light of these economic trends, investing in Italy presents both opportunities and risks. Investors need to be mindful of the country’s ongoing fiscal and structural challenges but can take advantage of the strong sectors that are poised for growth, especially those aligned with the NRRP’s strategic goals of innovation and sustainability. Italy’s journey through the coming years will be defined by its ability to manage public debt, implement crucial reforms, and foster a more inclusive economy. Our list of the ten best Italian stocks to buy now focuses on companies that are well-positioned to navigate Italy’s current economic landscape, and without further ado, let’s now take a look at them.
Our Methodology
For this article, to make our list of the best Italian stocks, we ranked the forty most valuable Italian stocks that trade on both U.S. and other exchanges by their average analyst share price target percentage upside as of September 26 and picked out the top firms.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Italian Stocks To Buy Now
10. Ferrari N.V. (NYSE:RACE)
Upside Potential: 1.50%
Latest Average Share Price Target: $484
Ferrari N.V. (NYSE:RACE) stands as an iconic Italian company, renowned globally for its luxury sports cars and racing pedigree. As one of the top Italian stocks to consider, Ferrari is a symbol of performance, innovation, and exclusivity. Its Q2 2024 earnings further solidify its position as a premier stock, backed by robust financial metrics and a strong brand presence that spans beyond Italy, appealing to a global audience.
In Q2 2024, Ferrari N.V. (NYSE:RACE) achieved remarkable financial results, which are key reasons for its inclusion among the top Italian stocks to buy. The company’s revenue surged by 16% year-over-year, reaching €1.7 billion. This growth was primarily driven by a strengthened product mix, increased demand for personalization, and the popularity of its new models like the Dodici Cilindri Spider and Coupe. This ability to cater to unique customer preferences has allowed Ferrari to maintain a high level of exclusivity and demand, contributing to its strong order book, which extends well into 2026.
Ferrari N.V. (NYSE:RACE) profitability in Q2 also shone, with adjusted EBITDA reaching €670 million, reflecting a robust 39% margin. Net profit for the quarter stood at €413 million, underlining Ferrari’s operational efficiency and strong financial health. The company’s focus on premium models, including the hybrid series, further strengthened its market position. Notably, 48% of its shipments in Q2 consisted of hybrid vehicles, demonstrating its commitment to innovation and sustainability, without sacrificing performance.
The company’s strategic investments in its new e-building, which will house the development of internal combustion engines, hybrid, and electric models, position Ferrari to stay ahead in the rapidly evolving automotive industry. This facility will enhance Ferrari’s ability to produce cutting-edge electric vehicles, while still excelling in traditional and hybrid powertrains, ensuring its competitive advantage.
Ferrari N.V. (NYSE:RACE) strong cash flow generation, despite increased capital expenditures for R&D and new infrastructure, also reflects its prudent financial management. With these strong fundamentals, Ferrari N.V. (NYSE:RACE) is not just an Italian stock but a global investment opportunity with a promising outlook for long-term growth and profitability.
Ensemble Capital Management stated the following regarding Ferrari N.V. (NYSE:RACE) in its first quarter 2024 investor letter:
“Ferrari N.V. (NYSE:RACE): With the company’s utility vehicle, the Purosangue, sold out despite being priced much more aggressively than many investors expected, investor attention has been turning to the company’s long term ability to raise prices. With the business’s earnings power being regularly revised higher by investors who watched the company navigate COVID and inflation easily, the stock has been on a tear.
Ferrari has had a very successful run since we first bought shares in the company in 2017. It has been one of our most successful investments since, with shares rising over five times, and understandably so given how phenomenal this business is and how well it has been managed.
Initially spun out of Fiat (now Stellantis) in 2015, it was a rare jewel within the parent company, where its value was hidden among more standard and premium cars sold under brands such as Fiat, Alpha Romeo, Maserati, Chrysler, Jeep, and others. Under the leadership of the astute business manager Sergio Marchionne, who had run Fiat since 2004, Ferrari came to be recognized as the undervalued and unique asset that it was within its parent…” (Click here to read the full text)
09. UniCredit S.p.A. (OTC:UNCFF)
Upside Potential: 5.28%
Latest Average Share Price Target: $46.25
UniCredit S.p.A. (OTC:UNCFF), headquartered in Milan, Italy, stands out as a prime investment opportunity in the Italian stock market. As a leading commercial bank with a robust presence in Italy, Germany, Central Europe, and Eastern Europe, UniCredit S.p.A. (OTC:UNCFF) has demonstrated remarkable financial performance and resilience. With a diversified range of services including retail, private, and wealth management solutions, as well as corporate finance and advisory services, UniCredit’s broad reach and strategic execution have positioned it as a top contender for inclusion in any list of best Italian stocks.
In its Q2 2024 earnings call, UniCredit S.p.A. (OTC:UNCFF) reported stellar results, marking the 14th consecutive quarter of profitable growth. The bank achieved record results for both the quarter and the first half of the year, underscoring its strategic prowess and disciplined execution. Key financial metrics reflect a strong performance: net interest income (NII) grew by 5% for the half-year and 2% for the quarter, while fee income saw impressive increases of 6.6% and 10%, respectively. The bank’s cost of risk remained exceptionally low, with a half-year figure of 5 basis points and a quarterly figure of just 1 basis point, highlighting its prudent provisioning policies.
UniCredit S.p.A. (OTC:UNCFF) operational efficiency is equally impressive. The bank’s cost-to-income ratio improved to 36.3%, a 2.9 percentage point enhancement from the previous year, and its net revenue to risk-weighted assets (RWAs) increased to 9.1%. The CET1 ratio rose to 16.2%, up from 15.7% a year ago, and the bank generated €6.7 billion in organic capital during the half-year period. This capital strength supports a robust distribution policy, with €5.25 billion accrued for distribution, equating to 100% of net profit.
Regionally, Italy, UniCredit S.p.A. (OTC:UNCFF) core market, delivered strong results with net revenue rising 5.5% for the half-year and 3.7% for the quarter. The Italian operations achieved a cost-to-income ratio of 33.9% and a return on average capital (RoAC) of 32% for the half-year. This solid performance, coupled with a substantial 20% upside potential based on the latest average share price target of €45.80, makes UniCredit S.p.A. (OTC:UNCFF) a compelling buy in the Italian stock market. UniCredit S.p.A. (OTC:UNCFF) consistent performance, strong financial metrics, and strategic positioning affirm its status as a top investment choice, with significant potential for future growth.
08. Tenaris S.A. (OTC:TNRSF)
Upside Potential: 12.01%
Latest Average Share Price Target: $16.60
Tenaris S.A. (OTC:TNRSF) stands out as a top Italian stock due to its substantial operations and a strong presence in the global steel pipe manufacturing industry. With roots in Europe and significant contributions to the energy sector, Tenaris S.A. (OTC:TNRSF) is well-positioned for growth, making it a compelling choice for investors looking to add Italian stocks to their portfolio.
For Q2 2024, Tenaris S.A. (OTC:TNRSF) posted net sales of $3.32 billion, a slight dip from the previous quarter but showcasing resilience in high-demand regions such as the Middle East and offshore oil developments. The company’s seamless pipes segment, vital for oil and gas drilling, experienced a 4% increase in volume compared to Q1 2024, offsetting a 1% decrease in overall average selling prices. This highlights Tenaris’ ability to manage product pricing even during a challenging market phase.
However, net income and operating margins were impacted due to ongoing OCTG price declines in the Americas and a $171 million litigation-related provision. Excluding this extraordinary charge, the company’s EBITDA would have been $821 million, representing 24.7% of sales. This suggests that Tenaris S.A. (OTC:TNRSF) remains fundamentally sound, with robust financial performance even amidst external pressures.
The company’s balance sheet is a notable strength, with a positive net cash position of $3.8 billion as of June 2024. Tenaris S.A. (OTC:TNRSF) generated $774 million in free cash flow during the quarter, reinforcing its capacity for share buybacks and dividends while maintaining financial flexibility. This strong liquidity, combined with strategic cost-reduction efforts and investments in new technologies, bolsters its competitive position moving forward. In summary, Tenaris S.A. (OTC:TNRSF) solid financials, global market presence, and robust balance sheet make it a highly attractive stock for investors. The stock’s upside potential and resilience in critical markets position it for continued success, despite short-term challenges in pricing and litigation issues.
07. Stevanato Group S.p.A. (NYSE:STVN)
Upside Potential: 16.79%
Latest Average Share Price Target: $24.27
Stevanato Group S.p.A. (NYSE:STVN) stands out as a notable Italian stock due to its robust position in the biopharmaceutical packaging and engineering sectors, combined with its strategic global footprint and innovative product offerings. Despite recent challenges, the company remains poised for significant growth, making it a top pick for investors seeking exposure to Italian equities.
Stevanato Group S.p.A. (NYSE:STVN) recent Q1 2024 earnings report reveals a mixed performance, but the underlying fundamentals and future prospects suggest substantial upside potential. The company’s current average share price target of $27.03 reflects an attractive upside potential of 41.82%, underscoring its investment appeal.
In Q1 2024, Stevanato Group S.p.A. (NYSE:STVN) reported a slight revenue decline of 1%, attributed primarily to industry-wide destocking of glass vials, which impacted their performance in the Biopharmaceutical and Diagnostic Solutions Segment. This temporary softening in demand, particularly for EZ-fill vials, is expected to rebound as inventory levels normalize. Despite this, the company’s product diversity, including high-value solutions like syringes, has been a growth driver, with a 15% increase in high-value solutions revenue.
The gross profit margin for the quarter was 26.4%, affected by lower volumes of high-margin EZ-fill vials and inefficiencies in new manufacturing plants. However, the company’s strategic investments and operational optimizations are set to enhance efficiencies and profitability in the long term. The Engineering Segment saw a revenue decrease of 13% due to reduced sales from visual inspection and assembly lines, but ongoing efforts to improve operational execution are expected to yield positive results.
Financially, Stevanato Group S.p.A. (NYSE:STVN) maintains a solid balance sheet with cash and cash equivalents of €186.3 million and net debt of €186.9 million, providing ample liquidity for strategic initiatives. The recent follow-on offering raised €170.5 million, enhancing the company’s capital flexibility. Although the first-quarter free cash flow was negative at €30.6 million, this is anticipated to improve as the company ramps up production and customer validations. Looking ahead, Stevanato Group S.p.A. (NYSE:STVN) leadership in ready-to-use vials, growing demand for self-administration devices, and ongoing expansion projects position it well for future growth. The company’s strategic focus on high-value solutions and biologics offers a compelling growth trajectory, making it a strong candidate for inclusion in the list of top Italian stocks to buy now.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding Stevanato Group S.p.A. (NYSE:STVN) in its Q2 2024 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. Declining by -43% was Stevanato Group S.p.A. (NYSE:STVN), which manufactures glass packaging for syringes, autoinjectors, and other pharmaceutical needs. Stevanato’s results were lower than anticipated with some additional glass vial destocking by customers weighing on results. That also led management to reduce its guidance for the rest of the year. Other areas, such as syringes, showed better growth.”
06. Leonardo S.p.a. (OTC:FINMY)
Upside Potential: 24.34%
Latest Average Share Price Target: $14.20
Leonardo S.p.a. (OTC:FINMY) is a pivotal player in Italy’s industrial and technological landscape, specializing in defense, aerospace, and security sectors. The company operates globally, with notable influence in Italy, the UK, the US, and other regions. Leonardo S.p.a. (OTC:FINMY) diversified portfolio includes helicopters, defense electronics, aircraft, and space systems, making it a top pick among Italian stocks. With a solid track record of growth and innovation, Leonardo S.p.a. (OTC:FINMY) stock shows promise, making it a strong contender for investors seeking exposure to Italy’s thriving defense and aerospace sectors.
Leonardo S.p.a. (OTC:FINMY) financial performance in the first half of 2024 demonstrates its resilience and growth potential. Revenues increased by 11%, reaching €8 billion, while EBITDA grew by 13.3%, from €444 million to €503 million. These figures highlight the company’s robust operational efficiency, as well as its ability to capitalize on growing demand in its core sectors. The return on sales also improved slightly to 6.3%, underscoring the company’s profitability despite challenging market conditions.
Key to Leonardo S.p.a. (OTC:FINMY) bullish outlook is its ability to secure new orders, which grew by 15.6%, contributing to a backlog of €43 billion, up from previous levels. This backlog ensures sustained revenue generation in the coming years, particularly in high-growth areas such as space and cyber security, where Leonardo is actively expanding its capabilities. The company’s free operating cash flow improved by 8.4%, a sign of better cash management, while net debt decreased by 18.2%, showing a stronger balance sheet.
The company’s focus on digitalization and efficiency measures has further enhanced its operational performance. For instance, Leonardo S.p.a. (OTC:FINMY) digital twin technology and big data analytics in its helicopters and aircraft smart factories are driving productivity and cost savings. Additionally, a savings plan of €1.8 billion over the next five years, with €150 million targeted for 2024, is on track, reinforcing the company’s commitment to cost optimization. In conclusion, Leonardo S.p.a. (OTC:FINMY) strong financials, strategic growth in key sectors, and ongoing efficiency improvements make it a solid investment choice with significant upside potential. Investors can expect continued growth as the company leverages its technological advancements and international partnerships.
05. Eni S.p.A. (NYSE:E)
Upside Potential: 24.71%
Latest Average Share Price Target: $37.95
Eni S.p.A. (NYSE:E) operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. The company was founded in 1953 and is headquartered in Rome, Italy.
Eni S.p.A. (NYSE:E) is a compelling inclusion in the list of top Italian stocks to buy now, reflecting its robust financial performance and strategic initiatives. Despite missing Q2 earnings expectations with an EPS of $0.98 compared to the anticipated $1.12, Eni’s overall business fundamentals present a strong bullish case. The company has demonstrated significant progress across its operations and strategic goals, with a promising upside potential of 25.28% and an average share price target of $39.60.
Eni S.p.A. (NYSE:E) second-quarter results show solid growth in production and a strategic focus on high-margin and lower-emission assets. The company’s upstream business reported a 6% year-on-year production increase, contributing to a pro forma EBIT of EUR3.5 billion. This performance underscores Eni’s effective navigation of the oil and gas market dynamics, including favorable oil prices and a recovering gas market.
The company’s strategic acquisitions, including Neptune and its integration with Ithaca Energy, have substantially enhanced its upstream portfolio, leading to increased operational synergies in Indonesia, Norway, and Algeria. Additionally, Eni’s divestment of non-core assets in Congo, Nigeria, and the upcoming sale of assets in Alaska is streamlining its portfolio, thereby improving capital efficiency and reducing leverage.
In terms of financial health, Eni S.p.A. (NYSE:E) pro forma EBIT reached EUR4.1 billion, reflecting resilience despite a challenging market environment. The company’s cash flow from operations (CFFO) for the first half of the year amounted to EUR7.8 billion, showing effective cash conversion and operational efficiency. With net debt falling from Q1 peaks and expected leverage below 20% by year-end, Eni’s strong balance sheet provides ample room for future investments and shareholder returns.
The company’s ventures into energy transition businesses, such as Plenitude and Enilive, are also promising. These investments not only enhance Eni’s sustainability profile but also attract significant private capital, reflecting the market’s valuation of Eni S.p.A. (NYSE:E) integrated energy solutions. The planned IPOs for these businesses further underline Eni S.p.A. (NYSE:E) growth trajectory. Overall, Eni S.p.A. (NYSE:E) strategic focus on high-quality assets, strong financial metrics, and effective portfolio management make it a standout choice among Italian stocks. With a forward-looking growth strategy and substantial upside potential, Eni is well-positioned for continued success and robust shareholder value.
04. Telecom Italia S.p.A. (OTC:TIIAY)
Upside Potential: 29.60%
Latest Average Share Price Target: $3.48
Telecom Italia S.p.A. (OTC:TIIAY) stands out as one of the best Italian stocks to buy now due to its robust financial performance and strategic initiatives, which have transformed the company’s capital structure and operating efficiency. The firm’s recent developments, including the successful sale of NetCo to KKR, have significantly deleveraged the business and positioned it for sustainable growth. With a renewed focus on its domestic and Brazilian operations, Telecom Italia has managed to strengthen its balance sheet, optimize cash flow, and reinforce its position in the competitive telecom industry.
In the first half of 2024, Telecom Italia S.p.A. (OTC:TIIAY) reported strong financial results, surpassing its guidance and reflecting solid performance across key segments. The group’s total revenues grew by 3.5% year-over-year, while domestic revenues increased by 1.6%, demonstrating resilience in the face of intense market competition. The company’s EBITDA after lease also saw a double-digit increase, primarily driven by outstanding growth in Brazil and steady performance in the Italian market. The successful execution of its transformation plan has resulted in over EUR 100 million in EBITDA savings, showcasing the company’s operational efficiency.
The company’s strategic focus on TIM Enterprise and TIM Brazil as growth engines is paying off. TIM Enterprise’s revenue increased by 5% year-over-year, supported by strong demand in cloud and security services, which saw growth of nearly 20%. This has enabled Telecom Italia S.p.A. (OTC:TIIAY) to secure a leadership position in the National Strategic Hub for cloud services in Italy, with increasing interest from private sector clients.
In addition, the sale of NetCo has led to a significant net debt reduction of EUR 13.8 billion, lowering the company’s leverage ratio and improving its credit profile. With a renewed capital structure, Telecom Italia S.p.A. (OTC:TIIAY) is better positioned to pursue long-term growth opportunities. The company’s outlook for the second half remains positive, supported by favorable seasonality, price increases, and continued momentum in its cloud and connectivity segments.
Overall, Telecom Italia S.p.A. (OTC:TIIAY) solid financial performance, strategic realignment, and focus on growth areas make it an attractive investment option for those seeking exposure to the Italian stock market. The company’s ability to adapt and transform amidst challenging conditions highlights its potential for sustained value creation in the future.
03. Brunello Cucinelli S.p.A. (OTC:BCUCY)
Upside Potential: 102.18%
Latest Average Share Price Target: $104.73
Brunello Cucinelli S.p.A. (OTC:BCUCY) stands out as one of the best Italian stocks to buy now due to its robust global presence and solid financial performance. The company, founded in 1978 and headquartered in Solomeo, Italy, specializes in luxury clothing, accessories, and lifestyle products. It operates in major markets, including Italy, Europe, North America, and Asia, making it a strong player in the luxury fashion industry.
The Q2 2024 earnings report highlights Brunello Cucinelli S.p.A. (OTC:BCUCY) strong financial performance, with revenues reaching €620 million, a 14.7% increase from the previous year. This growth is evident across all major markets, with sales in America up 19%, Europe up 9%, and Asia up 14%. The company’s retail sales grew by 14.7%, while wholesale sales increased by 13.1%, reflecting balanced growth across its sales channels. Such consistent performance underscores the brand’s resilience and appeal to consumers worldwide.
Brunello Cucinelli S.p.A. (OTC:BCUCY) focus on high-quality products, or “gentle luxury,” contributes to its strong market position. The company’s men’s and women’s collections have been well-received, with balanced growth between both categories. Its commitment to exclusivity and craftsmanship has made it a go-to brand for discerning consumers. Moreover, the company’s efforts to expand its physical retail presence, including the opening of flagship stores in Miami and Venice, strengthen its brand visibility and customer engagement.
Looking ahead, Brunello Cucinelli S.p.A. (OTC:BCUCY) expects continued revenue growth of around 10% for 2024, with sustainable profit margins. The company’s strategic investments, including the expansion of its Solomeo factory and the integration of AI in its new website, are set to further enhance operational efficiency and customer experience. These initiatives, along with strong financial metrics and positive market trends, make Brunello Cucinelli S.p.A. (OTC:BCUCY) a compelling stock to consider for investors looking for growth in the luxury sector.
02. Natuzzi S.p.A. (NYSE:NTZ)
Upside Potential: 428.73%
Latest Average Share Price Target: $23
Natuzzi S.p.A. (NYSE:NTZ) deserves its spot among the ten best Italian stocks to buy now due to its impressive financial turnaround and strategic positioning in the luxury furniture market. The company has effectively expanded its margins and strengthened its retail presence, especially in North America, making it a compelling investment opportunity. The firm’s focus on enhancing its brand and operational efficiency has resulted in strong financial performance, demonstrating resilience and growth potential in a challenging macroeconomic environment.
In the first quarter of 2024, Natuzzi S.p.A. (NYSE:NTZ) reported invoice sales of approximately EUR 84.5 million, aligning closely with the prior year. This stable performance amid geopolitical turbulence in emerging markets such as Russia and the Middle East highlights Natuzzi’s ability to maintain a solid revenue base. One of the standout aspects of the quarter was the robust growth of the company’s directly operated stores, which reached EUR 20 million, an increase of 13% year-over-year and 10% compared to 2022. Notably, sales from North America surged by almost 30% compared to Q1 2023, signaling the effectiveness of the company’s strategy to become a more retail-centric business.
Natuzzi S.p.A. (NYSE:NTZ) gross margin improved significantly to nearly 37%, up by 1.5 percentage points from 2023 and by seven percentage points since 2019, underscoring the success of its margin-expansion efforts. The company’s operating profit for the quarter stood at EUR 0.6 million, a substantial improvement from a loss of EUR 0.9 million in the same period last year. This achievement reflects Natuzzi S.p.A. (NYSE:NTZ) effective cost management and strategic initiatives, which have lowered the company’s breakeven point and enhanced profitability.
Furthermore, Natuzzi S.p.A. (NYSE:NTZ) continues to leverage its strong brand equity across key markets like the United States, China, and Europe. The company’s focus on strengthening its wholesale relationships and expanding its retail footprint has positioned it well for future growth. The launch of new retail formats and innovative product collections has also resonated positively with both partners and consumers, setting the stage for sustained revenue growth. With a clear focus on expanding margins, enhancing brand value, and optimizing its geographical presence, Natuzzi S.p.A. (NYSE:NTZ) is poised for continued success, making it a top choice for investors seeking exposure to high-quality Italian stocks with strong growth potential.
01. Genenta Science S.p.A. (NASDAQ:GNTA)
Upside Potential: 461.74%
Latest Average Share Price Target: $23.20
Genenta Science S.p.A. (NASDAQ:GNTA), headquartered in Milan, Italy, stands out as a prime candidate for inclusion in the ten best Italian stocks to buy now due to its innovative approach in the biotechnology sector. As a clinical-stage biotech company, Genenta Science S.p.A. (NASDAQ:GNTA) focuses on developing hematopoietic stem cell gene therapies to treat solid tumors. Its flagship product, Temferon, currently undergoing Phase 1/2a clinical trials, shows promise in treating glioblastoma multiforme, a highly aggressive form of brain cancer. The company’s broader ambitions include utilizing Temferon for other tumor types, including hepatocellular carcinoma and intra-hepatic cholangiocarcinoma, giving it significant growth potential in a lucrative market.
Genenta Science S.p.A. (NASDAQ:GNTA) financial metrics further demonstrate its potential. With an estimated upside potential of 657.58%, the latest average share price target stands at $25, making it an attractive option for investors seeking significant returns. Despite its early-stage nature, Genenta Science S.p.A. (NASDAQ:GNTA) leadership in cutting-edge gene therapy and its focus on difficult-to-treat cancers offer strong upside potential.
However, as with many clinical-stage biotech firms, Genenta has not yet generated revenue, and its net losses have been increasing over the years. The company reported losses of €11.6 million in 2023, up from €8.5 million in 2022 and €5.5 million in 2021. The bulk of these losses stem from the company’s heavy investment in research and development, particularly in advancing its product candidates like Temferon through the clinical trial process.
As of December 31, 2023, Genenta Science S.p.A. (NASDAQ:GNTA) had cash reserves of €18.8 million, providing enough liquidity to sustain its operations for the next 12 months. However, the company acknowledges that it will require additional funding to continue its operations and pursue growth. This need for external capital presents a potential risk, but it is also an opportunity for investors to get in early before potential partnerships or collaborations with major pharmaceutical companies, which could propel the stock. Genenta Science S.p.A. (NASDAQ:GNTA) innovative platform, financial metrics, and future potential make it a compelling stock to consider in the biotech space.
While we acknowledge the potential of GNTA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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