FEZ's Performance Was Flat in 2015: What Does 2016 Look Like?
Auto manufacturing industry
The SPDR Euro Stoxx 50 ETF’s (FEZ) auto manufacturing industry provided a return of -2% in 2015. Auto manufacturing stocks like Volkswagen (VLKAY), Daimler (DDAIF), and BMW returned -28%, 12%, and 9%, respectively. Daimler and BMW provided positive returns. However, Volkswagen’s negative return took away the auto manufacturing industry’s positive performance.
The emission scandal in September had a negative impact on Volkswagen. It fell by 30% in September. However, the stock recovered slowly in November and December. The company recalled the defective cars. Due to the emission scandal, Toyota (TM) took the global sales lead from Volkswagen.
Moving averages
Volkswagen, Daimler, and BMW were trading above their 100-day and 50-day moving averages. They were trading at par with their 20-day moving average. The 20-day moving average is strong resistance point for the stocks. However, the 100-day moving average is also a strong support point for the stocks.
Volkswagen is trading 17% above its 50-day moving average. In the last seven months, it struggled to cross its 50-day moving average. It crossed the 50-day moving average on November 22, 2015, after the announcement that it would recall the defective vehicles.
Daimler is trading 4% above its 100-day moving average, at par with its 50-day moving average, and 1% below its 20-day moving average. In the last six months, it struggled to cross the 50-day moving average. It crossed its 50-day moving average on October 15, 2015.
BMW is trading 9% and 3% above its 100-day and 50-day moving averages. It’s trading at par with its 20-day moving average.
Analysts’ estimates
Analysts’ estimates suggest an upside of 21% and 4% for Daimler and BMW, respectively. The estimates suggest a downside of 4% for Volkswagen over the next 12-month period from its current levels as of December 29, 2015.
In the next part of this series, we’ll analyze the performance of the Eurozone’s (EZU) pharmaceutical industry.
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