The ‘dogs’ of the Ibex 35 to win in 2022

The title of dog of the stock market is granted to those companies that, after a disastrous year in their listing, should outlast any other for the next twelve months. In 2021, five Ibex companies That won their necklace were Siemens Gamesa, Grifols, PharmaMar, Solaria and ACS by scoring the largest cuts in the selective since January 1.

However, the firms that one year can be part of the bottom row the next may be the ones that lead the increases thanks to the upside potential of 29%, on average, that analysts predict for this quintet for 2022.

There are investors who can use this strategy? Buy the worst for their expected rebound? to join companies that want to make a clean slate from one year to the next. And, if not, let them tell those who bet in 2021 on Sabadell Bank which went from being the bottom in the previous year to being the second that rose the most in 2021 -and it would have been the first if it had not been for the arrival of Laboratorios Rovi in ​​the final stretch of the year to the Ibex with its spectacular profit of 94.7 % in the year that comes to an end-.

Thus, Solaria and Siemens Gamesa, the two that occupied the two best positions on the podium last year, have closed 2021 among the last in line. In the case of Siemens Gamesa, which has lost 36% In these twelve months, its business has suffered in part from the decline in the installation of new wind farms, “particularly in China,” as Bloomberg analyst Rob Barnett points out.

Raw materials become more expensive

Similarly, the increase in cost of steel that the company needs in its production also suffered its business. On the other hand, the company will reduce its losses next year, according to most experts, although it will continue with losses close to 143 million euros and faces 2022 with a sell recommendation. In this way, Siemens Gamesa has a potential of 22%, according to the consensus of the experts collected by Factset.

Solaria, which after rising a meteoric 247% in 2020 was placed this year at the bottom of the table, saw in 2021 how projects were delayed for the construction of photovoltaic parks, as happened with the Trillo project in Guadalajara. In fact, the company published in its accounts for the third quarter that no new installations had been carried out from July to September, so meeting its goal of 2,150 MWs installed in 2021 is “unattainable despite the fact that those under construction reach 1,233 MW “in the first nine months of the year, according to what Renta 4 pointed out.

For the manufacturer of blood products Grifols, December was a month that has allowed it to bounce 6%, although it continues to trade around 17 euros at levels not seen since 2016. Its balance in 2021 placed the company in the second worst put by dropping a 29 while showing the greatest potential of the five worst: 49%, according to the market consensus and with a target price of 25.8 euros.

Medicines to treat cancer

Despite the twelve bad months that the year that ends in comparison with 2020, which was its debut within the Ibex 35, meant for PharmaMar, the pharmaceutical company will see its 35% profit for next year, according to the market consensus collected by Factset, thanks to the fact that it has secured the production of its drug to treat lung cancer together with Jazz Pharmaceuticals.

Lastly, ACS received the smallest bite from 2021 of these five companies. The announcement of the construction company and its intention to sell Cobra, its industrial business, together with the hiring reduction of new construction works leave the company with a foreseeable reduction in profits for the new year to be reduced by 28%, according to experts, to 596.5 million euros.