Watchlist and Price Targets in Case of a Potential Market Consolidation
Always be prepared to seize opportunities
In our previous article on Do's and Don'ts in a Bear Market, we highlighted three key mistakes to avoid during a bear market: panic selling, buying every dip too soon, and never buying at all.
To navigate these pitfalls, I explained in my article a practical approach: create a watchlist, establish buying zones, and allocate funds strategically.
To assist you further, I will share some suggested buying zones for promising targets. For most stocks, I have identified three buying zones, with the final one being more aggressive to prepare for any scenario. Of course, there is no guarantee that these zones will be reached, and some may appear unrealistic. It is up to each investor to determine which zones are of interest. As discussed, the objective is to deploy your funds thoughtfully throughout the market decline.
How to define the buying zones
To define the buying zones, I use a mix between a fundamental and technical analysis. You can also do it with a good information website. You can find all the data I am using through the following link to marketscreener.com. I use this website daily, and I am confident it can be helpful to you as well. (Please note that this is an affiliate link)
If you’d like me to analyze buying zones for additional stocks, please like, comment, and repost. I would be happy to provide that information.
Let’s begin with an example
We will use Microsoft as an example.
Currently the stock has a 30.9x PE and a current price of $408. It is down 12.6% from its ATH.
The first buying zone is $399. It was a clear support at the end of April 2024. This price is very close to the current one so it won’t really change the current valuation. However, it may only be a support for a short-term rebound.
A second interesting zone is $350. It was a resistance at the end of 2021 and mid-2023. It would give a 26.5x PE. As Microsoft is one of the most beautiful companies in the world, this can be an interesting price.
A third interesting zone is $285/$300. This zone was a support at the beginning of 2022, and in May 2023 and a resistance in August 2022. It would give a 22x PE.
The last zone is the most interesting one around $225. It was a resistance in 2020 and a support at the end of 2022 and the beginning of 2023 where the current rallye began. It would give a 15.5x PE which is unlikely to happen - but nothing is impossible.
So the zones are:
$399 / PE 30x
$350 / PE 26.5x
$285/$300 / PE 22x
$225 / PE 15.5x
As I already have a lot of Microsoft stocks with a PE of $250, I won’t reinforce at $399. I don’t believe we will see $225 - in this case it would be a huge bear market and therefore new strategies may be necessary. So I may decide to allocate 50% around $350 and 50% around $285/$300.
And without further ado, let’s discover the buying zones of 50 stocks. Please note that for most stocks, the current price and P/E ratio reflect the values as of Sunday evening, August 4.
Dutch stocks
1. ASML
Sector: Industrials / Technology
Current price: 737€ / 2024 PE 39.2x / 2025 PE 24.3x
Buying zones:
700€ / 2024 PE 37.2x / 2025 PE 23.1x
547€ / 2024 PE 29.1x / 2025 PE 18.0x
425€ / 2024 PE 22.6x / 2025 PE 14.0x
2. Adyen
Sector: Financials
Current price: 1,043€ / 2024 PE 37.2x / 2025 PE 29.6x
Buying zones:
940€ / 2024 PE 33.5x / 2025 PE 26.7x
740€ / 2024 PE 26.4x / 2025 PE 21.0x
640€ / 2024 PE 22.8x / 2025 PE 18.2x
3. ASM International
Sector: Industrials / Technology
Current price: 548€ / 2024 PE 40.3x
Buying zones:
515€ / 2024 PE 37.9x
420€ / 2024 PE 30.9x
360€ / 2024 PE 26.5x
4. BE Semiconductor
Sector: Industrials / Technology
Current price: 107€ / 2024 PE 43.7x / 2025 PE 24.7x
Buying zones:
86€ / 2024 PE 35.1x / 2025 PE 19.9x
Danish stocks
1. Novo Nordisk
Sector: Healthcare (so may resist well in a recession)
Current price: 871DKK / 2024 PE 38.2x / 2025 PE 30.3x
Buying zones:
850DKK / 2024 PE 37.3x / 2025 PE 29.6x
740DKK / 2024 PE 32.5x / 2025 PE 25.7x
645DKK / 2024 PE 28.3x / 2025 PE 22.4x
Swedish stocks
1. Evolution
Sector: Consumer Discretionary
Current price: 1,002SEK / 2024 PE 16.5x
Buying zones:
976SEK / 2024 PE 16.1x
792SEK / 2024 PE 13.0x
2. Alpha Laval
Sector: Industrials
Current price: 440SEK / 2024 PE 23.7x
Buying zones:
392SEK / 2024 PE 21.1x
333SEK / 2024 PE 17.9x
246SEK / 2024 PE 13.2x
3. Assa Abloy
Sector: Industrials
Current price: 301SEK / 2024 PE 21.8x
Buying zones:
270SEK / 2024 PE 19.5x
225SEK / 2024 PE 16.3x
199SEK / 2024 PE 14.4x
French stocks
1. Hermes
Sector: Consumer Discretionary
Current price: 1,960€ / 2024 PE 44.4x / 2025 PE 39.8x
Buying zones:
1,850€ / 2024 PE 41.9x / 2025 PE 37.6x
1,655€ / 2024 PE 37.5x / 2025 PE 33.6x
1,450€ / 2024 PE 32.8x / 2025 PE 29.4x
1,180€ / 2024 PE 26.7x / 2025 PE 24.0x
2. Schneider Electric
Sector: Industrials
Current price: 203€ / 2024 PE 25.8x
Buying zones:
175€ / 2024 PE 22.2x
142€ / 2024 PE 18.0x
111€ / 2024 PE 14.1x
In the rest of the article I will present XXX stocks from different countries including: LVMH, Alphabet, Amazon NVidia, Broadcom, Visa, Mastercard, Salesforce, Meta and 11 others.
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