Here are four stocks of Italian companies to buy and hold for a long period in your portfolio. Shares of very solid, well-known companies that have had a good period, which should also last into 2024.
Italy is not just a “Bel Paese” to visit as tourists and it is not just the home of pizza and lasagna, Italy has 60 million inhabitants, is the 8th world power by GDP and has some very important companies of which today we present 10 for your 2024 securities portfolio.
Based on what we chose these Italian stocks:
- Solid companies
- Companies that have been operating in the same field for many years and are sector leaders at an international or Italian level
- Companies that have had very positive data in the last 2/3 years
- Company that all Italian analysts recommend for 2024
Best Italian stocks to buy in 2024 to improve your portfolio
Ferrari ( RACE)
We expressed the opinion of buying this stock before its IPO which took place years ago and all you have to do is scroll the price chart with the mouse to understand why. On the Milan Stock Exchange it is recognized with the symbol (BIT: RACE) Ferrari is an Italian automotive company specialized in the production of luxury sports cars. Founded in 1947 by Enzo Ferrari, the company is headquartered in Maranello, Italy.
Technical Analysis
On December 14, Ferrari recorded a controlled decline, marking a decline of 2.30% compared to previous values. The day began with lively movements with the stock opening at 341 euros, below the peak of the previous session, and then progressively weakening, closing at 331.2 at the low of the session. The weekly outlook for Ferrari reflects a divergence from the strength shown by the FTSE MIB, making the stock potentially subject to selling pressure. In terms of status and trend analysis, the medium-term outlook remains positive for Ferrari, although a short-term chart highlights weakening prices after testing resistance at 339.6. Initial support is identified at 327, with a technical anticipation of a short-term negative trend towards the bottom at 322.8.
In risk assessment, Ferrari’s recent performance appears relatively stable, characterized by a particularly low daily volatility level of 1.291. Daily volumes, reaching 500,724, exceed the one-month moving average set at 291,015, suggesting a medium-term trading opportunity thanks to investor interest.
2. Leonardo ( LDO )
Leonardo (BIT:LDO) (formerly Finmeccanica) is the largest defense and space company in Italy. It is owned by the Italian State which firmly holds the relative majority shareholding and in this particular historical period it should go back to working hard, given what is happening.
These actions are naturally to be recommended as a war is underway and Leonardo is practically a monopolist for weapons of war in Italy, weapons of all types from radars, missiles, tanks, ships built also thanks to its subsidiary Fincantieri.
Leonardo not only supplies the Italian army, navy and air force, but also the armies of half the world.
Financially speaking, it is a company that has been undervalued for a long time and which has recently seen a nice revaluation on the stock market.
The rating agencies have assigned Leonardo a credit rating of BBB+ from Standard & Poor’s and A2 from Moody’s. These ratings are considered “good” and indicate that Leonardo has a good ability to repay its debts.
Technical Analysis
In the stock market session of December 5, the Italian holding Leonardo recorded a significant drop of 1.59% in the aerospace sector compared to previous values. The day started relatively stable, but saw a gradual worsening throughout the meeting, ending on a subdued note near the low point of the day. Leonardo’s weekly performance indicated a weakening trend compared to the overall strength of the FTSE MIB. This decline increases the possibility of the stock becoming a sell target by traders. In terms of technical analysis, there are strengthening bearish implications for the Italian defense contractor, with negative signals suggesting a potential move towards the estimated support area at 13.76. Conversely, bullish pressures could push prices up to 14.19, where a significant resistance level lies. The prevailing bearish sentiment sets the stage for a negative outlook in the coming session, with a potential target at 13.62.
Looking at the risk analysis, Leonardo’s trend stability, highlighted by its low daily volatility at 1,629, makes it an attractive investment, especially for risk-averse traders looking to avoid substantial losses while settling for modest gains. Medium-term trading is recommended, given the recent market interest in the stock, highlighted by the increase in daily volumes compared to the one-month moving average of volumes, which is set at 3,537,224. This suggests a favorable environment for medium-term investors considering the current market dynamics and trading patterns of the stock.
3. STMicroelecronics ( STM.MI )
Here we are one of the most interesting Italian companies, or rather strategic as it builds microchips, also listed on Wall Street and for this reason a share that we have included in this series of recommended stocks. Having been involved in this business for years, it has recently seen a lot of capital enter which has been invested precisely in this production which is essential for the technological and economic development of Italy and Europe without having to depend on China anymore as has been done for too long time.
Its price per share/earnings ratio is very interesting and the other parameters also seem to be in order to make it a stock that can give a lot of satisfaction in the coming years. It is a company that we really like as it operates in a very strategic field in which it has few rivals in Europe.
Technical analysis
On December 15th, the Italian-French semiconductor company performed well, experiencing a 2.74% increase. The trading day commenced with strength, opening at 46.09 Euros above the previous session’s highs. Throughout the day, the stock strengthened, closing at 46.84, near the session’s peak. Weekly performance indicated a more robust trend for the company compared to the FTSE MIB index, drawing increased investor interest towards STMicroelectronics. Short-term technical analysis suggests a bullish acceleration with a target set at 47.7, while a potential downside risk to 45.12 is considered a temporary correction rather than a threat to the overall positive trend. Expectations point towards the continuation of the bullish trendline, targeting 50.29.
In terms of risk analysis, STMicroelectronics has exhibited a stable trend recently, characterized by a low daily volatility level of 2.129. The daily trading volumes, totaling 5,511,740, surpass the one-month moving average volume of 2,302,229, signaling a medium-term operational interest from investors. Overall, the company’s trend appears favorable, with encouraging indicators supporting a positive outlook for medium-term investment.
4. ENI ( ENI)
ENI (BIT: ENI ) (National Hydrocarbons Agency) is an Italian multinational company in the oil and gas sector. It is one of the largest publicly traded energy companies in the world and is active in the exploration, production, refining and marketing of oil and gas products. If there is a share loved by Italians, especially for its abundant dividends, it is ENI; which we propose as a classic Italian dresser action
Technical analysis
On December 14th, the performance of the company called “Six-legged Dog” showed a moderate upward trend, closing with a percentage change of 0.66%. The day saw a good start with an opening at 14.85 euros above the highs of the previous session, maintained throughout the day, and a closing at 14.85 close to the highs of the session. ENI’s movements over the week closely mirrored the FTSE MIB, indicating the stock’s strong dependence on the overall market rather than company-specific news. In terms of technical analysis, the overall backdrop suggests strengthening bearish implications for the energy-focused company, with negative pressures potentially pushing prices towards the estimated support area at 14.73. However, bullish influences could push prices up to 14.99, where a significant resistance level lies. The prevalence of bearish signals raises negative expectations for the next trading session, with a potential target set at 14.61.
Regarding risk analysis, ENI’s trend stability, highlighted by its low daily volatility set at 1,374, makes it an attractive investment, particularly for risk-averse traders who are content with modest gains and prefer to avoid losses significant. A medium-term trading strategy is recommended, given the recent market interest in the stock, as evidenced by the increase in daily volumes compared to the one-month moving average set at 9,768,119.
5. ENEL (BIT: ENEL)
Here too we are talking about a company in the energy sector whose majority share package is in the hands of the Italian state. ENEL (BIT: ENEL) is another of our ‘special surveillance’, the distribution of profits will also substantially determine the value of the shares in the near future. So for Us it’s a BUY. ENEL S.p.A. (National Electricity Agency) is an Italian company that operates in the energy sector. Actions suitable for those looking for high divisions.
Technical Analysis:
In this brief update on the energy group, a modest increase of 1.48% is recorded. The opening of the session was in line with the previous close, but a strengthening occurred during the day, with the closing close to the highs of the day. Enel’s weekly performance is linked to the general trend of the FTSE MIB, making the stock sensitive to the market rather than to specific news about the company. The short-term analysis suggests a strengthening of the bullish phase for Enel, with immediate resistance at 6.761 and first support at 6.657. Technically, a further increase in the curve is expected, with new peaks estimated around 6.865.
From a risk perspective, the stock currently appears to be under control, with a daily volatility of 1.093 and still low daily volumes, positioned below the moving average of monthly volumes. Enel’s balanced movement suggests limited interest from institutional investors, allowing greater control over the trend despite its apparent stability and absence of strong fluctuations.
6. Unicredit (BIT: UCG)
Unicredit (BIT: UCG) is one of the largest players in the banking sector in Italy in terms of market capitalisation, geographical presence and size of the branch network. The discussion we had with Intesa Sanpaolo also applies to Unicredit. If you believe in the Italian economy then you can also buy these shares, to hold for the long term. Here is a brief history and some main features of this bank. The characteristic of this stock is its high dividends.
Technical Analysis
In this positive trading session for the banking institution, it demonstrated robust progress, closing with a notable gain of 3.08%. The market open aligned closely with the previous session’s close, experiencing strengthening dynamics throughout the day and concluding near its daily peak. In the weekly comparison with the FTSE MIB index, Unicredit showed positive relative strength, outperforming the index by a significant margin (weekly performance of +5.02% compared to +0.24% of the main index of the Milan Stock Exchange ). Currently, the short-term outlook for Unicredit indicates a clear upward trend, with a target set at 26.02. In the event of a temporary correction, the immediate target is identified at 24.8, while expectations favor a further rise up to the level of 27.25.
From a risk analysis perspective, trading this stock seems particularly suitable for risk-averse investors. The trend remains fairly constant, further confirmed by a notable increase in trading volumes, which reached 11,296,542 compared to last month’s moving average volume of 10,568,314.
7. STELLANTIS N.V. (BIT:STLA)
His shares are known under the symbol (BIT: STLA) Stellantis N.V. is an Italian-French company in the automotive industry. Below you will find some information about Stellantis:
Overview: Stellantis was formed on January 16, 2021 by the merger between the Italian automaker Fiat Chrysler Automobiles (FCA) and the French automotive group Groupe PSA. It has become one of the world’s leading automotive companies by production volumes and sales.
Automotive Brands: Stellantis owns and operates a wide range of automotive brands, including Fiat, Chrysler, Jeep, Alfa Romeo, Maserati, Peugeot, Citroën, Opel, Vauxhall, DS Automobiles, Lancia and others. Each brand has its own identity and offers a variety of vehicle models, covering different segments of the automotive market.
Global Presence: Stellantis operates worldwide, with a strong presence in Europe, North America, Latin America and other regions. The company is committed to meeting the needs of global customers, adapting its products to the specificities of different markets and consumer preferences.
Stellantis represents a strategic partnership between Italy and France in the automotive sector and aims to maintain a leading role in the global automotive industry by combining the expertise and resources of the two parent companies, FCA and Groupe PSA. Very interesting shares from the point of view of dividends.
Technical Analysis
In this sector, the Italian-French-American car manufacturer Stellantis experienced a lackluster day of trading, closing with a slight decline of -0.12%. The opening of the day mirrored the close of the previous session, and prices fell throughout the day. On a weekly basis Stellantis has shown a weakening trend relative to the strength of the FTSE MIB, potentially attracting selling interest from market participants. A medium-term analysis suggests a positive outlook for the company, although short-term indicators show signs of contraction, grappling with resistance at the 20.93 level, while maintaining support at 20.17. Overall, the general context could justify the continuation of the consolidation phase towards the 19.92 level.
Regarding risk analysis, Stellantis’ performance is considered manageable. Daily trading volumes stood at 6,889,893, below the one-month moving average of 8,623,484. The price deviation is relatively narrow, with a daily volatility value of 1.66. This suggests a controlled risk scenario. The information is provided by the Teleborsa Research Office and the section ends with a disclaimer.
8. Brunello Cucinelli (BIT: BC).
Here is one of those stocks to buy and hold for years, even to pass down to posterity. Known on the Milan Stock Exchange under the symbol (BIT: BC ) Brunello Cucinelli S.p.A. is an Italian fashion and luxury company based in Solomeo, in the province of Perugia, Italy. In just a few years it has gone from a small laboratory in the 80s to a point of reference for Italian fashion and a Blue Chip on the Milan Stock Exchange.
Technical Analysis
In this segment, the cashmere market leader recorded a decline in the value of its shares by 1.48%, characterized by a session characterized by an initial opening in line with the previous day’s close, followed by a gradual decline of prices during the day, finally closing weaker near the session lows. A one-week technical analysis of Brunello Cucinelli stock versus the FTSE MIB index reveals a slowdown in its performance, making it a potential selling target for investors. The medium-term technical implications remain bullish, but there is a noticeable weakening of the short-term bullish momentum, attributed to difficulties in moving above the 86.8 mark. The immediate support level, crucial for monitoring the current phase, is at 81.4, with expectations leaning towards a corrective movement extending around 79.6 in the near future.
Regarding the risk analysis, the daily volatility of the Solomeo group is relatively balanced and the volumes remain stable, occasionally showing an increase compared to the one-month moving average. This stability is considered preferable for risk-averse investors who aim to avoid sudden and violent fluctuations in the stock. The consistent and moderate risk environment aligns with a cautious approach, suitable for those seeking stability in their investments.
9. STMicroelectronics (BIT:STM)
Here we are one of the most interesting Italian companies, or rather strategic as it builds microchips, also listed on Wall Street and for this reason a share that we have included in this series of recommended stocks. Having been involved in this business for years, it has recently seen a lot of capital enter which has been invested precisely in this production which is essential for the technological and economic development of Italy and Europe without having to depend on China anymore as has been done for too long time.
Its price per share/earnings ratio is very interesting and the other parameters also seem to be in order to make it a stock that can give a lot of satisfaction in the coming years. It is a company that we really like as it operates in a very strategic field in which it has few rivals in Europe.
Technical Analysis
The Italian-French semiconductor company recorded a significant decline, concluding the session with a notable loss of 3.86% compared to previous values. Despite a promising initial start at 43.1 euros, lower than the previous day’s highs, the stock worsened during the session. A one-week technical analysis of the stock versus the FTSE MIB index indicates a slowing trend for STMicroelectronics, making it a potential sell target for investors. The technical outlook reveals a clear deterioration, with estimated support levels around 39.97 and a notable resistance level at 44.11, suggesting further downside potential. The chipmaker’s weakened position is underlined by the bearish crossover of the 5-day moving average with the 34-day moving average, and there are immediate prospects of a decline towards the 38.59 target.
Considering the risk analysis, trading this stock seems more suitable for risk-averse investors. The trend remains relatively stable, supported by a substantial increase in trading volume to 6,133,841 compared to the one-month moving average volume of 2,200,717. The steady trend and substantial increase in trading volumes indicate a potentially high-risk situation, warranting caution for investors contemplating further involvement with the company’s shares.
10. Digital Bros Spa (BIT: DIB)
Digital Bros Spa (BIT: DIB) is an Italian company that deals with the distribution and sale of game software. It has numerous exclusive games in its catalog and for this reason it has grown a lot in recent years, as has the entire online games sector.
You must be careful when buying these shares to invest in the long term, however, because it is a rather volatile stock which had a notable increase during the pandemic, but which then continued its growth at a slower rate, this led to a reduction in the price of these shares which, however, in 2023, should continue its growth together with the entire company.
Technical Analysis
In the digital entertainment sector, the featured player experienced a lively session, marked by an upward progression of 2.11%. The day got off to a weak start with an opening price of 10.42 euros, close to the lows of the previous session. However, as the session unfolded, the stock showed a strengthening trend, eventually closing on an upward trajectory at 10.67, close to the session highs. Over the course of the week, Digital Bros showed relatively weaker performance compared to the FTSE MIB, suggesting a potential vulnerability for sellers who would take advantage of any weaknesses. A technical analysis by Digital Bros indicates a modest short-term uptrend, with the initial resistance zone identified at 10.81 and support at 10.49. This positive trend suggests the possibility of further ascension, potentially testing 11.13.
Despite the optimistic outlook, investors should be cautious, considering the high risk of gain/loss of the investment, characterized by a daily volatility of 2.394. Risk-taking investors appear particularly intrigued by Digital Bros, evident from the consistent daily trading volumes of 88,436, exceeding the daily average of 60,589. This increased interest highlights the potential for significant market movements, but also highlights the increased risk associated with investing.
Why You should invest in Italian stocks:
Investing in Italian stocks can be a rewarding strategy for long-term investors. Here are some reasons why you might consider investing in the Italian market:
-
Large and Diversified Economy: Italy is the eighth-largest economy in the world, with a strong industrial base and a diverse range of industries. This diversification helps to mitigate risk and protects investors from economic downturns in specific sectors.
-
Strong Manufacturing Sector: Italy is renowned for its manufacturing prowess, particularly in sectors like machinery, automotive, fashion, and luxury goods. These industries are known for their high quality and innovation, making them attractive investment opportunities.
-
Strategic Location: Italy occupies a pivotal position in Europe, serving as a gateway to the Mediterranean region and North Africa. This strategic location provides access to lucrative markets and facilitates trade and business opportunities.
-
Skilled Workforce: Italy boasts a well-educated and skilled workforce, with a strong focus on technical and vocational training. This talent pool is crucial for supporting the country’s manufacturing and technology sectors.
-
Government Reforms: Italian policymakers are actively implementing reforms to improve the country’s competitiveness and attract foreign investment. These efforts aim to reduce bureaucracy, streamline regulations, and enhance infrastructure.
-
Attractive Valuations: Italian stocks are currently trading at relatively discounted valuations compared to other developed markets. This presents an opportunity for investors to capture potential upside when the market recovers.
-
Exposure to Growing Markets: Italy’s proximity to emerging markets in Africa and the Middle East provides exposure to these dynamic growth regions. This diversification can help to balance out risks and enhance overall portfolio performance.
-
Exposure to Luxury Goods: Italy is a global leader in luxury goods, with brands like Gucci, Armani, and Ferrari renowned worldwide. This sector generates significant revenue and can provide stable returns for investors.
-
Recession-Resistant Sectors: Italy’s economy is supported by recession-resistant sectors like healthcare, food and beverage, and utilities. These industries are less susceptible to economic downturns, offering stability for long-term investors.
-
Diversification Benefits: Investing in Italian stocks can diversify a portfolio away from overreliance on specific sectors or regions, reducing overall portfolio risk and enhancing returns potential.
It’s important to note that investing in any market carries inherent risks. Investors should conduct thorough research, assess their risk tolerance, and diversify their portfolios to manage potential losses.
See also: >> Best Italian stocks February 2024.- Comparison of european defense stocks –
