Over the past three months, I have had the privilege of guiding readers through a series of articles exploring the best investment opportunities in disruptive North American companies. Today, I’m temporarily stopping this series just as the Russell 2000, the index that reflects the performance of small and medium-sized American companies, reached the target that I had marked at the heights of 2021. At this point, it’s time, as I often say, to “get the camera out.”
The Russell 2000 faces crucial resistance, these 2021 highs. So that what could be called a “poker of aces” is confirmed and put on the negotiating table, where all American indices show strength , we need the Russell 2000 to manage to exceed this 2021 ceiling. aggressively, preferably during a monthly close, which the S&P 500, the Dow Jones Industrial and the technological Nasdaq have already done years ago month. If this were the case, we would be facing a very favorable sign for 2025, reinforcing the strategy which consists of taking advantage of 10% corrections in the indices as great buying opportunities. If this happens, I will resume looking for opportunities among these disruptive companies, but all in due time.
In the meantime, my attention will be focused on other types of opportunities: the “blue sapphires”, as I usually call the stocks that aspire to be part of the next fund review. ECO 30 Braided Walletrecommended by the economist. Although only a few stocks are selected to join this fund, I will explore and look for investment opportunities among the rest of the blue sapphires which, although they do not enter this review, stand out for being exceptional companies in terms of fundamentals and recommendations. , some of whom are the best in their sector.
In this first article, I will focus on the “blue sapphires” of the automotive sector and its components, a sector deeply shaken by the emergence of China, whose leadership and competitiveness have changed the rules of the game. Pressure exerted by the Chinese advance has broken the market, generating a scenario of uncertainty for European and North American companies. Personally, until things become clearer, I prefer to remain cautious in this sector outside of China. However, it is precisely in the punishment suffered by these companies, until now leaders of the sector in the West, that some of the most interesting investment opportunities are found. This is why I consider it essential to carry out a comprehensive analysis of these companies in order to identify those that could resist and adapt to the challenges of the global market.
Volkswagen
Volkswagen is facing a difficult context, particularly due to pressure from Chinese manufacturers on the electric market, where the German company is trying to regain ground. With ambitious investment plans in electrification and software, VW is seeking to consolidate its transition to more sustainable mobility, although it still faces major competitive and regulatory challenges in Europe and China.
Months ago I decided to remove this title from the recommendations list eco-retailerwho is the one who serves the subscribers of eco-retailer to find members of your portfolio with a medium- and long-term orientation. I did this to avoid the possibility of VW price heading towards 2020 lows, during Covid accident around 75-80 euros. Well, the price is already a few steps away from this important long-term support, which has stopped the falls over the last three decades, notably in 2011, 2015 and 2020. We will have to see if this support of 75-80 the euro is working again, stopping the downward trend which is evident from 240 euros. If I detect technical evidence suggesting seller burnout, I would support a new buy recommendation for Volkswagen shares.
Renault
Renault is also faced with a complex panorama, marked by Chinese competition and the transition to electric vehicles. The company is seeking to reposition itself with a strategy of alliances and affordable electric models to gain ground in the European market.
Technically, it is not doing as badly as Volkswagen, since the share price is light years away from the lows of 2020. This solidity is what pleases me and should not scare you, as soon as you doubt where invest your money. the ideal is to always focus on strong values. Buy weakness, except in cases like Volkswagen, which are close to such important long-term supports, generally do not go well.
Renault’s price has sought short-term support in the uptrend that has guided increases from 2020 lows, which currently stand at 36 euros. With a stop at this level, I don’t mind buying the stock, especially if it manages to overcome the resistances of 44-45 euros, which would confirm a bullish turn from this guideline. We would look for new rising highs on those who scored months ago at 54.70 euros then increases towards the highs of 2018 at 86 euros. Until then, there is a potential of 115%.
Pirelli
Pirelli, reference in the tire sector primefaces a delicate situation due to increased global competition, particularly from Asian manufacturers. The focus on innovation and sustainability, with high-tech and efficient products, is essential to maintain its leadership. in high performance segments. The company continues to adapt to electric and connected mobility requirements, which are essential to its future growth.
Pirelli price corrected the 38.20% Fibonacci of the entire previous rise from the 2022 lows, coinciding with the uptrend that has guided the rises since then. With stop at 4.85 euros It doesn’t seem bad to me to buy looking for increases towards the 2018 highs around 6.80 euros. Until then, there is a potential of 30%.
Daimler Truck Holding
Daimler Truck Holding, one of the world’s largest truck manufacturers, is leading its transition to electric and hydrogen vehicles with the aim of becoming a leader in sustainable mobility in heavy transportation. The company faces cost and technological adaptation challenges in a demanding and competitive market. Its commitment to innovation and strategic partnerships could solidify it in the global zero-emission truck industry.
Technically, it would only attract my attention if its price corrected towards the 32-34 euro zone. In this case, drive a stop At 29.80 euros, I could consider buying this title. Otherwise, I wish you a good trip.
Continental
Continental, leader in automotive technology and components, is diversifying its offering to adapt to a sector in full transformation towards electric and autonomous mobility. The German company, which produces everything from tires to advanced driver assistance systems, faces significant pressure from Chinese competition and volatility in global markets. Continental seeks to strengthen its presence in digital and sustainable solutions, with a significant investment in R&D focused on software and electrification. This focus on innovation is essential to maintaining competitiveness in an increasingly disruptive market.
Technically, I left this company for last, not because I didn’t like it, but because it was the one that could most clearly open a buying window. If it manages to beat 63 euros, I recommend buying while looking for a context of increases towards targets first in the 80s then 120 euros. If it does not exceed 63 euros, the real Christmas present would be if it loses ground to 38-40 euros in the coming months. I would buy there without hesitation.
