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Invesco European Growth Fund’s Top Five

Monica Wolfe

Monica Wolfe

122 followers

During the third quarter the Invesco European Growth Fund bought four new stocks bringing the fund’s total number of stocks to 75. Invesco European’s portfolio is valued at $1.178 billion as of the fourth quarter.

The following five companies represent the largest positions Invesco European Growth Fund maintains.

Aryzta AG (XSWX:ARYN)

Invesco European Growth Fund’s largest holding goes to the Switzerland-based Aryzta AG. The fund holds 530,940 shares of the company’s stock which represents 0.58% of the company’s shares outstanding and 3.4% of Invesco’s total portfolio.

Over the fourth quarter the fund upped their stake 7.79% by purchasing 38,360 shares of the company’s stock. They purchased these shares in the fourth quarter price range of CHF61.05 to CHF69.30 with an estimated average quarterly price of CHF66.03 per share.  From this average purchase price the price per share is now trading up about 7.5%.

Invesco European’s historical holding history:

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Aryzta is a global food business with a leadership position in specialty bakery. The company is based in Zurich, Switzerland with operations worldwide.

Aryzta’s historical revenue and net income:

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The analysis on Aryzta reports that the revenue has slowed over the past year, that the dividend yield is nearing a 5-year low and the price is near a 5-year high. The company has also issued €14.755 million of debt over the past year.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Aryzta has a market cap of CHF6.26 billion. Its shares are currently trading at around CHF71.00 with a P/E ratio of 45.60, a P/S ratio of 1.13 and a P/B ratio of 1.80. The company had an annual average earnings growth of 10.4% over the past five years.

DCC PLC (LSE:DCC)

The guru fund’s second largest holding is in DCC PLC where they maintain 667,195 shares of the company’s stock.  This position makes up for 2.5% of their total portfolio as well as 0.80% of the company’s shares outstanding.

Over the duration of the fourth quarter the fund upped their position in the company 34.95% by adding 172,783 shares.  The fund bought these shares at the estimated average quarterly price of £27.88 per share.  From this price the price per share is up about 4.4%.

Invesco European’s historical holding history of DCC:

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DCC PLC is a sales, marketing, distribution and business support services group operating into five main segments: DCC Energy, DCC SerCom, DCC Healthcare, DCC Environmental and DCC Food & Beverage.

DCC’s historical revenue and net income:

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The analysis on DCC reports that the company’s operating margin and gross margin have been in a 5-year decline, its price is near a 10-year high and the company has shown predictable revenue and earnings growth.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Compass Group (LSE:CPG)

The guru’s third largest holding goes to Compass Group where they maintain 1,900,121 shares of the company’s stock.  This position makes up for 2.3% of the fund’s portfolio weighting as well as 0.11% of the company’s shares outstanding.

During the fourth quarter Invesco upped their holdings 7.7% by purchasing 135,781 shares of the company’s stock.  They purchased these shares at an estimated average price of £9.00 per share.  Since then the price per share is up approximately 4.9%.

Invesco’s historical holding history:

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Compass Group PLC is engaged in providing contract food and support services to clients in around 50 countries. The company’s businesses are focused in North America, Europe and Japan.

Compass Group’s historical revenue and net income:

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The analysis suggests that the company has predictable revenue and earnings growth, its price is near a 10-year high and its P/E, P/B and P/S ratios are all also trading at 10-year highs.  The analysis also notes that the company has issued £1.7 billion in debt over the past three years.  

The Peter Lynch Chart suggests that the company is currently overvalued:

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Compass has a market cap of $17.04 billion.  Its shares are currently trading at around 9.44 with a P/E ratio of 41.30, a P/S ratio of 0.99 and a P/B ratio of 6.26.  The dividend yield of Compass stocks is 2.33%.  Compass had an annual average earnings growth of 10.50% over the past ten years.

GuruFocus rated Compass the business predictability rank of 3-star.

British American Tobacco PLC (LSE:BATS)

Invesco’s fourth largest position is in British American Tobacco where the fund currently holds on to 499,565 shares, representing 0.03% of the company’s shares outstanding and 2.3% of the fund’s total assets managed.

During the past quarter, Invesco increased their position in British American Tobacco 20.87% by adding a total 86,260 shares to their stake. They purchased these shares at an estimated average quarterly price of £32.86 per share. The price has dropped about -4% since then.

Invesco European’s historical holding history:

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British American Tobacco PLC is a holding company that owns, directly or indirectly investments in the numerous companies constituting the British American Tobacco Group of companies. Its brand portfolio includes Dunhill, Kent, Lucky Strike and Pall Mall.

British American Tobacco’s historical revenue and net income:

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The analysis on British American Tobacco reports that:

  • The operating margin is expanding
  • The dividend yield is nearing a 5-year high.
  • The company has issued £85million of debt over the past year.
  • Their revenue has slowed down over the past year.

The company recently announced that CTBAT International Limited has officially commenced operations. CTBAT is a joint investment of subsidiaries of China National Tobacco Corporation and British American Tobacco. This joint investment will own and manage worldwide international cigarette trademark State Express 555.

The Peter Lynch Chart suggests that the company is currently overvalued:

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British American Tobacco has a market of £59.52 billion. Its shares are currently trading at around £31.55 with a P/E ratio of 16.10, a P/S ratio of 3.98 and a P/B ratio of 7.91. The dividend yield of BATS stocks is at 4.37%. The company had an annual average earnings growth of 10.70% over the past ten years.

GuruFocus rated British American Tobacco the business predictability rank of 2.5-star.

Roche Holding AG (XSWX:ROG)

Invesco European’s fifth largest position is in the Swiss company Roche Holding. The fund holds on to 93,913 shares of the company’s stock representing 2.2% of their total portfolio and 0.01% of the company’s shares outstanding.

Invesco upped their holdings by 30.39% over the duration of the fourth quarter.  The fund purchased 21,889 shares at an estimated average quarterly price of $246.34, and since then the price per share is trading up approximately 3.8%.

Invesco’s historical holding history:

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Roche Holdings is a pharmaceutical and diagnostics company. It researches and produces medicines in oncology, infectious diseases, immunology, metabolism and neuroscience. Roche also participates in in vitro diagnostics, tissue-based cancer diagnostics and diabetes management.

Roche Holdings’ historical revenue and net income:

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The analysis on Roche Holding AG reports that the company’s revenue has been in decline over the past three years, its dividend yield is near a 5-year low and its price is near a 10-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Most recent the company received FDA approval for their new “subcutaneous formulation” of ACTEMRA for use in adult patients living with rheumatoid arthritis. To read more about this approval, click here.

Roche has a market cap of CHF220.64 billion.  Its shares are currently trading at around CHF255.80 with a P/E ratio of 22.80, a P/S ratio of 4.75 and a P/B ratio of 13.13.  The company’s dividend yield is currently at 1.87%. 

Check out Invesco European Growth Fund’s fourth quarter portfolio here.

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