Barclays says buy these 33 beaten-down stocks that are perfectly poised to capitalize on the reopening of the economy in the years ahead

  • The fortunes of some of the “pandemic losers” are shifting with a vaccine-driven recovery.
  • Airlines, hotels, cruiselines, hotels and entertainment shares are well below pre-pandemic levels.
  • Barclays says these 33 stocks perfectly placed to gain as investors bet on economic reopening.
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Vaccines offer society a route back to normality, and for investors they present an opportunity to buy those stocks that were badly beaten down in the pandemic and stand most to gain as the economy reopens and consumers start leaving their homes more. 

Barclays has taken a look at some of the airline, cruise line and hotel and entertainment stocks, as well as fashion retailers, food and beverages firms, and some attractively priced value names that are still a long way off where they were before the pandemic struck in February last year, although they’re comfortably above their recent lows. 

For example, the MSCI European value index has gained 42.95% since the March crash, but it’s 14.37% lower year-on-year, compared with a 5% gain in the broader MSCI Europe index, which leaves scope for a significant further recovery as vaccination programs across Europe start to curb virus transmission levels and suppress infection rates.

Several major European economies, including the UK, Germany, France and Spain, still have tough restrictions and lockdowns in place. But successful vaccination will allow activity to return to normal. Barclays has identified 33 stocks across several different sectors, that “offer potential value on a multi-year horizon,” the firm said in a note published Wednesday.

Many of these stocks are still showing double-digit percentage losses on where they traded a year ago. But there’s a caveat. Many of the longer-term structural implications of the pandemic are unknown, meaning that not all businesses will be able to go back to the “old normal,” Barclays said.

Here are the 33 stocks that Barclays believes should gain over the longer term, as vaccinations allow governments to lift restrictions.

Accor

  • Ticker: AC FP
  • Sector: Consumer Discretionary
  • Market cap: €8.1 bln

Burberry

  • Ticker: BRBY LN
  • Sector: Consumer Discretionary
  • Market cap: €8.1 bln

Carnival

  • Ticker: CCL LN
  • Sector: Consumer Discretionary
  • Market cap: €2.5 bln

Compass Group

  • Ticker: CPG LN
  • Sector: Consumer Discretionary
  • Market cap: €29.7 bln

H&M

  • Ticker: HMB SS
  • Sector: Consumer Discretionary
  • Market cap: €26.3 bln

Inditex

  • Ticker: ITX SQ
  • Sector: Consumer Discretionary
  • Market cap: €80.9 bln

Intercontinental Hotels

  • Ticker: IHG LN
  • Sector: Consumer Discretionary
  • Market cap: €10.5 bln

Next

  • Ticker: NXT LN
  • Sector: Consumer Discretionary
  • Market cap: €11.9 bln

Richemont

  • Ticker: CFR SE
  • Sector: Consumer Discretionary
  • Market cap: €42.0 bln

Sodexo

  • Ticker: SW FP
  • Sector: Consumer Discretionary
  • Market cap: €11.1 bln

Swatch Group

  • Ticker: UHR SE
  • Sector: Consumer Discretionary
  • Market cap: €7.2 bln

Whitbread

  • Ticker: WTB LN
  • Sector: Consumer Discretionary
  • Market cap: €7.4 bln

Anheuser-Busch Inbev

  • Ticker: ABI BB
  • Sector: Consumer Staples
  • Market cap: €91.6 bln

Associated British Foods

  • Ticker: ABF LN
  • Sector: Consumer Staples
  • Market cap: €20.5 bln

ADP

  • Ticker: ADP FP
  • Sector: Industrials
  • Market cap: €10.5 bln

Aena

  • Ticker: AENA SQ
  • Sector: Industrials
  • Market cap: €20.7 bln

Airbus

  • Ticker: AIR FP
  • Sector: Industrials
  • Market cap: €20.7.1 bln

Atlantia

  • Ticker: ATL IM
  • Sector: Industrials
  • Market cap: €13.3 bln

Deutsche Lufthansa

  • Ticker: LHA GY
  • Sector: Industrials
  • Market cap: €6.3 bln

easyJet

  • Ticker: EZJ LN
  • Sector: Industrials
  • Market cap: €4.3 bln

Fraport

  • Ticker: FRA GY
  • Sector: Industrials
  • Market cap: €4.5 bln

IAG

  • Ticker: IAG LN
  • Sector: Industrials
  • Market cap: €9.0 bln

ISS

  • Ticker: ISS DC
  • Sector: Industrials
  • Market cap: €2.7 bln

MTU Aero Engines

  • Ticker: MTX GY
  • Sector: Industrials
  • Market cap: €10.8 bln

Rolls-Royce

  • Ticker: RR LN
  • Sector: Industrials
  • Market cap: €8.9 bln

Ryanair

  • Ticker: RYA ID
  • Sector: Industrials
  • Market cap: €17.6 bln

Safran

  • Ticker: SAF FP
  • Sector: Industrials
  • Market cap: €45.0 bln

Thales

  • Ticker: HO FP
  • Sector: Industrials
  • Market cap: €16.5 bln

Vinci

  • Ticker: DG FP
  • Sector: Industrials
  • Market cap: €51.4 bln

Amadeus IT

  • Ticker: AMS SQ
  • Sector: Tech
  • Market cap: €25.1 bln

British Land

  • Ticker: BLND LN
  • Sector: Real Estate
  • Market cap: €4.9 bln

Gecina

  • Ticker: GFC FP
  • Sector: Real Estate
  • Market cap: €9.1 bln

Unibail-Rodamco

  • Ticker: URW NA
  • Sector: Real Estate
  • Market cap: €8.4 bln

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