The CAC 40 index has had a difficult period this year and the situation could worsen as the European Central Bank (ECB) turns hawkish. The index is trading at €7,000, which is about 5% below the year-to-date high. Here are the best CAC stocks to buy in 2022 as the macro-climate changes.
Societe Generale (FRA: SGA) is the third biggest bank in France after BNP Paribas and Credit Agricole. Its stock price has jumped by about 12% this year, making it the second-best performing company in the CAC 40 index after Renault.
There are two main reasons why the stock will continue doing well in 2022. First, higher interest rates by the ECB and other central banks will be a positive thing for the company. Besides, it generates most of its revenue from its lending business.
Second, the company is making progress to turn around its brand. In January, it unveiled a $5.5 billion deal in its attempt to make money in the car leasing business. It achieved that by acquiring LeasePlan, a company that provides leasing services.
Most importantly, like other European banks, there is a feeling that Societe Generale is an undervalued brand that has more room to grow.
TotalEnergies is one of the biggest oil and gas companies in the world. It has operations in tens of countries globally and more than $190 billion in total revenue. The firm makes most of its money selling oil and gas although it has a fast-growing clean energy business.
Totalenergies share price has done well in the past few months, helped by the rising oil and gas prices. This year alone, the shares have jumped by 11.38%, making it the third-best performer in the CAC 40 index.
There is a likelihood that the Total share price will keep rising in the coming months as global demand for oil and gas rises.
LVMH (FRA: MOH) is the biggest company in France by market capitalization. It has a market cap of more than €406 billion, which makes its founder the wealthiest person in France. The company has operations around the world although most of its growth is in the Asian market.
The LVMH share price has done well in the past few years. While the stock has declined by 2% this year, there is a likelihood that it will do well in 2022. The catalyst for the stock is global travel, which is expected to rebound this year.
Also, the Covid-19 pandemic produced so many wealthy people as the stock and cryptocurrency market rose. These people will continue spending on luxury goods. LVMH is well-positioned to do well because of its brand recognition and diversified business model.