We recently published a list of 12 Best Italian Stocks to Buy in 2025. In this article, we are going to take a look at where Stevanato Group S.p.A. (NYSE:STVN) stands against other best Italian stocks to buy in 2025.
As per Deloitte, the broader Italian economy slowed down in 2024, with moderate growth. The service sector expansion was contrasted with continued weakness in essentially all other sectors, mainly in manufacturing and automotive. The consumer and business sentiments in Italy were low across 2024, in the context of weakness in the critical economies of the euro area too.
On the supply side, the broader GDP growth was only supported by the services sector in 2024, while essentially all other sectors witnessed a decline. With these impacts now behind us, what lies ahead for the broader Italian economy?
Inflation Is Expected to Remain Moderate, Says Deloitte
In Italy, inflation slowed down in 2024 and remained the lowest for well-established European economies, added Deloitte. That being said, electricity and gas prices were higher in Italy in comparison to other large European economies including France and Germany, influencing the competitiveness of Italian companies. In 2025, Deloitte sees inflation to remain below the levels expected in the euro area and the ECB target of 2%.
Therefore, moderate inflation, along with nominal wage growth, can result in a gradual recovery in real wages. In general, the broader Italian labor market witnessed a contraction last year. Notably, while the number of employed people continues to increase, hours worked have witnessed a decline, primarily in the industrial sector. Deloitte believes that the broader Italian economy will maintain moderate positive growth in 2025, mainly in line with the anticipated average for euro-area economies. While it can face slightly higher consumer inflation, the levels will be lower than the euro area average. BNP Paribas believes that Italy still has the second lowest inflation in the Eurozone after Ireland. However, as elsewhere, inflation increased in January because of less energy deflation.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
GDP Expansion on the Cards, Says Allianz Trade
As per Allianz Trade, Italy witnessed a strong recovery from the pandemic and was one of the best performers among the 4 major Eurozone economies. Even though GDP is now 5.6% above pre-pandemic levels, the broader economic activity witnessed a slowdown in recent quarters. It even stagnated (in real quarterly terms) in Q3 2024. However, private consumption growth resumed in 2024, with confidence recovering alongside the strong decline of inflation.
Moving forward, Allianz Trade sees private consumption picking up due to a recovery in income and an easing of monetary policy. Notably, a catch-up in NGEU spending is expected to make up for the partial recovery of investment activity. In 2025, the firm anticipates GDP to expand by 0.8%, followed by 1% in the following year.
Our Methodology
To list the 12 Best Italian Stocks to Buy in 2025, we used a screener and sifted through several online rankings. Next, we chose the companies having headquarters in Italy and in which analysts saw upside potential. Finally, the stocks were arranged in ascending order of their average upside potential, as of February 10. We also mentioned hedge fund sentiments from Insider Monkey’s database of 900 elite hedge funds, as of Q3 2024.
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).
A scientist in a laboratory observing a drug delivery system through a microscope.
Stevanato Group S.p.A. (NYSE:STVN)
Number of Hedge Fund Holders: 11
Average Upside Potential: ~14.3%
Stevanato Group S.p.A. (NYSE:STVN) is engaged in the design, production, and distribution of products and processes to offer integrated solutions for bio-pharma and healthcare industries. The company has its headquarters in Piombino Dese, Italy. For Q3 2024, Stevanato Group S.p.A. (NYSE:STVN)’s revenue went up by 2% (3% on a constant currency basis) as compared with the same period last year, to €277.9 million. This growth was aided by a 6% growth in the Biopharmaceutical and Diagnostic Solutions (BDS) segment, offsetting a 15% fall in the Engineering Segment.
Notably, revenue from high-value solutions rose to 36% of total revenue in Q3 2024 as compared to 32% for the same period last year. This was fueled mainly by higher customer demand for high-performance syringes, and to a lesser extent, other products. While announcing its Q3 2024 results, Stevanato Group S.p.A. (NYSE:STVN) maintained its fiscal year 2024 revenue guidance and continues to expect revenue of between €1,090 million – €1,110 million.
Stevanato Group S.p.A. (NYSE:STVN)’s growth investments continue to accelerate, and in Q3 2024, its Latina project remained profitable at the gross profit level, while in Fishers, the company rolled out commercial production and generated its first commercial revenue. In Engineering, the actions taken by Stevanato Group S.p.A. (NYSE:STVN) helped to complete a handful of highly complex projects for key customers that were earlier delayed. Notably, the effects of destocking are anticipated to gradually improve into 2025, as the company sees some signs of stabilization in vial demand as customers work down inventories.
Overall, STVN ranks 7th on our list of best Italian stocks to buy in 2025. While we acknowledge the potential of STVN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than STVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
