The textile company Inditex does not stop surprising us every quarter with increasingly positive business accounts. To the point that they are in the price of their shares that does not stop growing. So important are the increases in recent years that investors who had opened positions five years ago, at this time would have a much higher capital. With a appreciation generated above 70%. That in the case of having invested a lot of money, I would have done it right now.
You cannot forget that Inditex shares are fashionable in the financial markets. Like few values of the benchmark index of the Spanish stock market. To the point that its evolution is closely followed by the most important financial intermediaries. With ongoing reviews against your target price and that in most cases they are clearly on the upside. Although if you have not entered, it may be a bit late to do it with maximum intensity. At least this is one of the doubts that many small and medium investors harbor.
In any case, the shares of this textile fashion company is one of the proposals that should not be lacking in any investment portfolio worth its salt. From those that start from the more conservative approaches to the most innovative bets within the financial markets. Because in effect, they are present in a good part of the small and medium investors. Virtually no exclusions anywhere short or long career in the world of money
Inditex: fundamental analysis
From this very relevant aspect in detecting opportunities, the company directed and founded by Amancio Ortega presents business figures that are very difficult to exceed at the present time. Even in the harshest moments of the recent economic crisis. With a strength in his income statement that has even surprised more than one financial analyst. Because in effect, they have been exceeding quarter by quarter, in a continuous and regulated way so as to give greater confidence to all kinds of investors.
This is shown by the latest quarterly results of the Galician company. In which it is found that its sales were worth 23.311 million euros. What in practice is a 12% growth compared to the previous year. The Spanish company has for the first time exceeded the barrier of 3.000 million euros in profits. By achieving total net earnings of 3.157 million. With an increase of 10% compared to the results of the previous year.
The reflection of these results on the labor aspect of the textile company also deserves special attention. Because indeed, has generated more than 9.596 jobs compared to the previous year. Where at the end of the year the workforce stood at 162.450 people. Conforming as one of the companies that is offering the most jobs at the moment. To the point that these data are giving greater confidence to investors who have open positions at the moment.
Consolidation of its technical aspect
Not of less importance is the reflection of its evolution in the equity markets in recent years. Because it is developing an unappealable uptrend. With constant increases in the Madrid parquet. To be trading right now around 36 and 37 euros per share. With a continuous progression every year since Inditex began to be listed on national equities. It reached 5 euros years ago and did not stop its evolution to current levels.
With punctual corrections, but that have served to gain more strength and reach new goals. In any case, under a moderation of the increases of all the years. In contrast to other more aggressive stocks that have obtained higher returns, but have quickly lost the positions they achieved. Not surprisingly, this is one of the differences it presents with respect to these characteristic values. Because Inditex's strength is being reinforced year after year and with hardly any breaks.
All this has generated that a good part of the first hour investors have become millionaires after a few years. And it goes without saying that it will have been strengthened in cases where you have not abandoned positions in the financial markets. To the point that many savers have found themselves in this peculiar scenario in recent years. Where the positions of the buyers are being imposed with special force with respect to the sellers. This is how the increases that Inditex has experienced for a long time are interpreted.
Absolute pound rise scenario
One of the main consequences of these constant increases is that the price of its shares is currently under a free rise scenario. Not from right now, but on the contrary that it has been materialized for several years. As well, its development is impeccable and where thousands and thousands of small and medium investors have been benefited. With signs that this trend can continue from these precious moments. It is at least one of the new challenges faced by the shares of this Spanish fashion company.
One of the doubts that small investors ask themselves is how long will the free rise scenario arrive. Because although it seems like it is eternal, there is no doubt that at any moment it can end. Although it may be in a few weeks or it still has a few years of upward travel. Because in fact, at some point or other it will have to end. And you will have no choice but to prepare for the arrival of this new scenario. Although for now, do not worry because you still have a long way to go,
With fixed dividend payment
Another incentive that you will have to make decisions in this value is due to the dividend that the company generates among its shareholders. Specifically, with the account payment of 0,34% euros by shares. With a yield close to 3%, being one of the lowest of the members of the selective index of the Spanish stock market, Ibex 35. Despite everything, it means that you will have a fixed and guaranteed liquidity every year. Regardless of what your evolution of the financial markets is. With a return on your savings higher than that offered by the main banking products (term deposits, promissory notes or corporate bonds, among others).
This is a dividend that is usually it is paid in the middle of April. So you will have no other solution than to wait for almost a new one to go to your checking account. In any case, Inditex's interest is not in its dividends. But especially in the evolution of their prices. Which is where the real interest really resides to start taking positions from now on. For any kind of profile you present, from the most defensive to the most aggressive. They are all included to be responsive to your operations.
Expansion into Russia
In addition, its entry point to the powerful Russian market is close. And that can provide Inditex with a new bullish pull from now on. After the news appeared that the Spanish chain of Zara fashion stores will manufacture clothing and household items in Russia, Victor Yevtúkhov, Russian Deputy Minister of Commerce and Industry, recently announced. "Two contracts have already been signed: for Zara Home and for the manufacture of clothing," said Yevtújov, reports the TASS agency. He also announced that the Inditex company, which owns Zara, will send specialists to Russia shortly to examine and select the companies with which they will collaborate.
On the other hand, it is noted that during 2017 it is proposed to sell around one million items manufactured in our country. The news has been collected, as it could not be otherwise, with strong increases in the price of its shares. It remains to be seen whether its effect will be extended in longer periods. Because if it were this way, it would be an opportunity to enter the stock market. And make the savings profitable in the best possible way. Even with the opportunity to test the important barrier of 40 euros per share. To place itself, once again, at the highest in its history.
A relevant fact that may be enhanced because this Spanish firm has opened a Zara store a few days ago on the Paseo de la Castellana in Madrid. It will be the largest store in the world, with more than 6.000 square meters of surface. In one of the most important shopping centers in the capital of Spain. Also very well received by users who are present in the national financial markets. In any case, it will be another incentive to join those previously mentioned.
Of course, there is no doubt that it is one of the values that you should be aware of to configure your next portfolio of securities. Together with another series of proposals that can help you to get more out of your operations. Even to open positions in investment funds that include this financial asset in its components.