HomeMost Popular Embracing European Excellence: JPMorgan Presents Premier Energy Stocks

Embracing European Excellence: JPMorgan Presents Premier Energy Stocks

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The Rise of the GRANOLAS in European Markets

In a year where the โ€œMagnificent Sevenโ€ tech stocks dominated the U.S. market scene, their European cousins, the GRANOLAS, have quietly made their mark. Coined by Goldman Sachs in 2020, this formidable group of European giants includes well-known names like GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, Lโ€™Oreal, LVMH, AstraZeneca, SAP, and Sanofi. Smoothly blending healthcare and consumer discretionary stocks, the GRANOLAS have brought a unique flavor to the European investment landscape, offsetting the tech-heavy dominance of the Mag 7 across the Atlantic.

JPMorganโ€™s Handpicked Energy Gems

Venturing beyond the confines of the GRANOLAS, JPMorgan has cast a discerning eye on the European market and unearthed three energy stocks that not only promise attractive valuations but also boast dividend-paying potential.

Eni S.P.A. (E)

Eni emerges as the first star in JPMorganโ€™s European constellation. Established in 1953, this Italian powerhouse has spread its wings globally, focusing on oil and gas exploration and production. With a presence in 62 countries, Eni commands a market cap of $54.9 billion, offering investors a forward dividend yield of 6.75%. Despite facing a 9.1% YTD dip, the companyโ€™s growth prospects remain robust.

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While Eniโ€™s recent quarterly results showed a decline in earnings, the company remains focused on expanding its biorefining capabilities and exploring spinoffs of its ancillary businesses to boost shareholder value. Priced attractively with a forward P/E ratio of 6.3, Eni is anticipated to deliver a modest 2% EPS growth in 2025.

TotalEnergies Se (TTE)

Founded in 1924, TotalEnergies stands as a pillar in the energy domain, boasting a diversified business portfolio that encompasses exploration, renewables, refining, and more. With a substantial market cap of $157.2 billion, the company offers investors a forward dividend yield of 4.90% and lucrative growth prospects despite a 4.3% YTD decline in stock value.

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Amidst reporting a decrease in earnings, TotalEnergies shines through its strategic investments, particularly its majority stake in SunPower, a leading US-based solar power company. With a promising growth outlook, JPMorgan foresees a 4% EPS increase in 2025 for TotalEnergies.

Royal Dutch Shell (SHEL)

Rounding up the trio of stellar picks is Royal Dutch Shell, a stalwart presence in the oil production arena since its formation in 1907 through a historic merger. With a rich heritage and a global footprint, Royal Dutch Shell is engaged in both upstream and downstream activities, offering investors a legacy of stability and growth potential.

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