The most important construction companies in Spain, and which are part of the selective index of Spanish equities, the Ibex 35, have registered during the last six months a increase in its market value of more than 500 million euros. In addition, others that are listed outside this index have also presented revaluations that should be classified as very interesting for the strategies of small and medium investors. Being one of the most suggestive equity sectors to make selective entries in their positions.
But do not be confused in your choice since the divergences between the companies in the brick segment are very intense. Not all have the same valuation and while some are a clear purchase option in others the best decision is to absent themselves from their positions. And if it is purchased, there will be no choice but to make the appropriate sales, either partially or totally. Not surprisingly, it is an economic sector that is highly diversified and not all securities present the same conditions in their technical analysis and perhaps even from the perspective of their fundamentals.
From this general perspective, it is very useful to emphasize that not all the values of Spanish construction companies have the same characteristics. Not much less, as you will be able to verify from now on. There are some securities that can be purchased, but in others the opposite occurs. It is necessary to know the real state of this important sector of the Spanish economy. So that from now on you can develop a rational and balanced investment portfolio that will make you make your savings profitable from these precise moments.
ACS: shareholder favorite
The ACS Group's sales in the first nine months of the year reached 27.091 million euros, which represents a 5,2% and 11,4% increase in comparable terms, that is, without considering the variation in the exchange rate impacted by the appreciation of the euro against other currencies in the last twelve months. This good evolution of all activities is mainly supported by the growth of the North American, Australian and Spanish markets.
The geographical distribution of sales shows the wide group diversification, where North America represents 45% of sales, Europe 21%, Australia 19%, Asia 8%, South America 6% and Africa the remaining 1%. Sales in Spain account for 14% of total sales. In any case, the price of its shares is framed in a clear upward trend and to the point of being one of the most attractive stock values to open positions from now on. With a buy recommendation from the vast majority of equity market analysts.
Acciona, the cover of the sector
Behind Florentino Pérez's company, Acciona stands out by becoming the second company to more has increased its market capital in recent months. And that it has significant potential for revaluation and in any case above other listed companies in its sector. It cannot be forgotten that it is one of the most recommended values by analysts of Spanish equities. In a clear uptrend that can lead you to achieve much more important heights from now on.
On the other hand, Acciona is a stock exchange that has reached an agreement so that supply renewable energy to Telefónica in this current year. In this sense, the contract estimates an energy volume of 345 GWh, which will prevent the emission of 107.000 tons of CO2. At this time, the supply represents 23% of the total electricity consumption of T Telefonica and 58% of its demand in high voltage. Acciona consolidates its energy marketing business to large clients in Spain and Portugal, which reached 5.900 GWh in 2018, an 11% increase.
Ferrovial, with great expectations
Another of the construction companies that is going through a better time is the one chaired by Rafael del Pino, and that in the opinion of financial analysts has a upside potential close to 20% levels. At the moment it is developing an impeccable upward trend that can make this value very interesting to have in an investment portfolio for the short and medium term. Where there is much more that small and medium investors can gain than lose.
Within this general scenario, the Spanish construction company has been awarded the expansion and reconstruction of a 6,7-mile (10,3-kilometer) section of the IH 35 highway, in Waco (Texas), for 341 million dollars, equivalent to 297 million euros. The contract is the largest award in Webber's history. Where, the project also includes the execution of 22 bridges. The works, which will begin in spring 2019, have a completion period of 46 months.
The cross in Spanish construction companies
Not all of it is good news for this relevant sector of national equities. Because in effect, there are a number of companies that present with a very delicate situation and that can lead them to depreciate more in financial markets from now on. This is the specific case of OHL, which has not yet stopped its powerful selling trend. With a series of processes and incidents that are not helping to gain the trust of small and medium investors. Where there is a great risk to lose many euros in their positions.
All this despite the fact that OHL has added new contracts in the United States for more than 130 million euros. In this sense, it should be clarified that the Villar Mir construction company has been present in the US since 2006 and currently operates in nine states -Florida, New York, New Jersey, Texas, California, Illinois, Connecticut, Virginia and Massachusetts- and the District of Columbia. But it does not seem that this kind of news is enhancing the conformation of its prices. In this regard, its trend in technical analysis is downward in all permanence periods: short, medium and long. With a sell order for investors who have taken positions in this market value.
Sacyr very weak in the stock market
Something similar is what happens to Sacyr, a company outside the selective index that has lost a lot of strength in recent years. It has gone from being one of the leading companies in the construction sector to one of those with a weaker technical aspect of all. In particular, since it left the Ibex 35 portfolio. Of course, it does not provide confidence margins such that it can become an object of investments by savers. If not, on the contrary, it is more profitable to stay on the sidelines in your operations.
In relation to the award notified yesterday by the International Chamber of Commerce (ICC) of Miami, Sacyr has clarified its situation regarding the advances of the Panama Canal. Where it clarifies that it has complied with its obligations corresponding to this award. The contract between GUPC and ACP established the date of June 2018 for the return of the advances. GUPC nevertheless requested an arbitration to accompany the return of said advances to the resolution of the technical arbitrations. In any case, compliance with the award by Sacyr will not have any effect on the income statement or on the shareholder remuneration policy.
FCC in no man's land
This construction company is, on the other hand, in a very anodyne situation in which it does not end up defining itself. Not surprisingly, it has been immersed in a very consistent lateral channel during the last few months. Not being one of the best options to take positions within this important business segment. On the contrary, trading operations are the most sensitive so that savings can be made profitable from now on. Especially because is one of the most volatile stocks and therefore it is not aimed at defensive or conservative investor profiles.
One of the most relevant news from FCC is that it has been included in the prestigious sustainability stock index FTSE4 Good Index, prepared every six months to highlight the performance of companies that demonstrate sound practices in environmental, social and corporate governance (ESG) matters. This index can be used by a wide variety of market participants in making sustainable investment decisions.
As you may have seen in this article, in the construction sector there is everything, the good and the less good. In one of the sectors that are most closely linked to economic cycles and this is one of the reasons for concern in the face of a slowdown in the international economy and of course the national one. With an obvious risk that the valuation of its shares may depreciate in this conjunctural scenario. Especially because is one of the most volatile stocks and therefore it is not aimed at defensive or conservative investor profiles.