Algos Show These European Stocks Will Gain From a Stronger Euro

  • Euro’s rise helps Engie, Novo Nordisk, Logitech: Quant Insight
  • European companies get about half their sales outside region

Engie SA, Novo Nordisk A/S and Logitech International SA are among the European stocks that stand to benefit the most from a strengthening euro.

That’s according to research by Quant Insight, which uses algorithms to identify assets most sensitive to particular factors like currencies, inflation expectations or economic growth. The region’s stock traders are turning their focus to the euro again after its recent strength, even as some bet stronger economic growth will eclipse its drag on equities.

European companies get roughly half their sales from outside the region, so the direction of the euro can have an impact on earnings.

Below is a list of European stocks most sensitive to the euro on a trade-weighted basis, according to Quant Insight, which lists hedge funds and investment banks among its clients. The company screens in excess of 3,000 securities to identify patterns between asset prices and spot trades that best fit specific macro views.

Stronger Euro Beneficiaries

  • Bank of Ireland Group Plc, Bpost SA, EDF SA, E.ON SE, Novo Nordisk, Amer Sports Oyj, Dufry AG, Novozymes A/S, Umicore SA, Subsea 7 SA, LEG Immobilien AG, Veolia Environnement SA, Tryg A/S, EMS-Chemie Holding AG, Daily Mail & General Trust Plc, Engie, Kion Group AG, Logitech, Sika AG, Flughafen Zurich AG

Weaker Euro Beneficiaries

  • Orion Oyj, Dialog Semiconductor Plc, Siemens Gamesa Renewable Energy SA, ProSiebenSat.1 Media SE, Skanska AB, Glanbia Plc, Intrum Justitia AB, Schaeffler AG, Porsche Automobil Holding SE, Fresenius SE & Co. KGaA, SKF AB, Sanofi, Telefonica SA, Merck KGaA, Endesa SA, Hochtief AG, Bolsas Y Mercados Espanoles SHMSF SA, Saab AB, Metso Oyj, Covestro AG
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