Beyond the Magnificent 7, These European Giants Keep Soaring Under the Radar

investing.com:

Goldman Sachs predicts that the tech sector will continue to thrive in the long term, particularly the magnificent 7.

In contrast, Europe is expected to see positive returns through a mix of sectors. In this piece, we will focus on European companies with robust earnings growth, low volatility, high and steady margins, strong balance sheets, and consistent dividends.

Utilizing Investing Pro's Fair Value, which uses various established financial models tailored to the unique attributes of these companies, we conducted a detailed analysis and came up with the following data:

Now, let's take a look at each company individually and analyze their prospects for the rest of the year.

Roche, a research-based healthcare company, is undervalued by 37% according to Investing Pro's investment models. The risk profile shows a good financial health level, with a score of 3 out of 5.

Source: InvestingPro

Delving deeper, we can see how it compares with the market and competitors, considering the best-known indicators, that Roche is now worth 3.1x its revenues compared to the industry's 3.2x, and the Price/Earnings ratio at which the stock is trading is more than 16 times against an industry average of -0.6x, which stands to highlight its overvaluation.

ASML, a manufacturer of chip-making equipment, appears to be overvalued by 17% according to Investing Pro's investment models. However, the company has a very good financial health rating of 4 out of 5.

Source: InvestingPro

Comparing the stock with the market and competitors, we have the confirmation we expected, the stock currently has a potentially overvalued valuation.

Today it is worth more than 12 times its revenue compared to 2.2x in the industry, and the Price/Earnings ratio at