October 19, 2023

Zurich Airport for the growth of the travel industry

Zurich Airport for the growth of the travel industry

As soon as the Covid pandemic ended, one of the most affected industries soon became the winner on the market: travel. The guest investors at our Coffee Break Chat predict sturdy growth and that’s precisely why Switzerland’s biggest airport, Zurich Airport is the next addition to our Swiss Value Wikifolio.

If individual stocks purchases aren't for you, take a look at the financial product traded on the SIX stock exchange: Obermatt Swiss Pearls Index ETP. It's made up of the 36 best performing Swiss stocks based solely on Obermatt's 360° View.

PRO: These three points speak for a buy:

  1. Very good Obermat 360° View means that the company’s overall performance is better than most of its competitors’.
  2. The aviation industry is currently in a growth momentum. Experts say that the industry will continue to grow, not only in developed markets but also in emerging economies, especially as travel has become more affordable and is more and more sustainable. Zurich Airport is also committed to sustainability.
  3. Zurich Airport has been named Europe’s best airport by the World Travel Awards for the 20th consecutive year. Its awarded service aside, commercial sales have already outperformed 2019, and traffic is only 2% below pre-Covid levels.

CONTRA: These three points argue against it:

  1. Travel and aviation in particular are very volatile industries that are dependent on many outside factors: wars, economy, public health and even weather can make the stock price go up or down. The risk premiums have increased significantly since 2020.
  2. A low Obermatt Value Rank tells us that the stock is currently expensive compared to similar companies.
  3. Also, the Analyst Opinions Rank is low - this means that in the previous period, stock research analysts warned against investing in Zurich Airport. This is now changing, as the Opinions Change Rank is 67 - it is taking a turn for the better.

Since we believe aviation will continue to grow, at least in the near future, we think we've made a good decision with Zurich Airport and added it to our Swiss Value Wikifolio.

If you want to be part of the shaping of our portfolios, join the free Coffee Break Chats with the creator of the Obermatt Method, Dr. Hermann J. Stern and other guest investors. You can share your ideas, discuss the stocks and learn about stock investing in the process.

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