Investing.com – The Stock Societe Generale SA (EPA:) posted the biggest decline among CAC 40 stocks last week, falling almost 15%, and reaching lows that had not been seen since February.
It should also be noted that the fall in SG shares had actually already started the previous week. Thus, between the peak of June 3 at 27.72 euros and the low of last Friday at 21.65 euros, the stock fell by 21.9%.
Remember that like many French stocks, Société Générale was largely penalized by the announcement of the dissolution of the National Assembly in France, as well as by the polls giving the RN a big lead for the early legislative elections on June 30.
The Fed meeting, which was the occasion for a hawkish surprise, as the central bank announced that it only plans one more rate cut this year, also played a role in the weakness of stocks in general last week.
However, given the scale and speed of the recent fall, the question arises whether the sanction would not have been excessive, and whether SocGen is now a buying opportunity.
However, this seems to be the case according to analysts, who have an average target of 31 euros, or 40% above the current price.
Valuation models also estimate that the stock is largely undervalued. Indeed, the InvestingPro Fair Value, which synthesizes several recognized valuation models, is displayed at 29.57 euros, or 33.5% above the closing price of last Friday.
However, the real “bloodbath” which affected CAC 40 shares and French stocks in general last week pushed many other shares lower, and SG is undoubtedly not the only interesting opportunity in this moment.
More precisely, a search on the advanced InvestingPro+ screener allowed us to identify this Monday morning 9 CAC 40 stocks which display an upward potential greater than 30% on the InvestingPro Fair Value (including Société Générale).
If you are a subscriber to InvestingPro+, you can easily find the list of these stocks by reproducing the following search in your member area:
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We also offer a -10% discount on 1 and 2 year Pro subscriptions, but please be aware that some features used in this article, including the stock search filter in the screener, are reserved for Pro+ subscribers.
The Pro subscription will, however, allow you to consult the Fair Value of all stocks, to use the basic functions of the screener, and above all to access ProPicks strategies managed by AI, to obtain effective turnkey advice with lists of stocks to buy to outperform the market.
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