CRERF - Finding More Bargains In Europe With Carrefour

2025-04-20 03:27:50 ET

Summary

• Carrefour SA is a potential bargain, trading at a below-market valuation with meaningful growth opportunities in 2025 and 2026.
• The company operates over 14,000 retail locations globally, including hypermarkets, grocery, and convenience stores, and is expanding its "cash and carry" segment in Latin America.
• Carrefour SA has a surprisingly high dividend yield of almost 8% and a recent track record of returning cash to shareholders in a variety of ways.
• The possible returns for this company seem to be worth the risks mentioned below. I rate the stock as a buy.

Earlier this year, I wrote two articles about finding value in European equities. I suggested Schwab International Equity ETF (SCHF) was a good way to invest in international markets, pointing out the fund’s significant allocation in Europe. I also recommended iShares MSCI Poland ETF (EPOL) because of Poland’s strong economy relative to other European countries. SCHF has only returned 5% on the year, but it has beaten the S&P 500 by 13%. EPOL has returned 19% on the year, which is over 30% better than the market in the US since the time the article was published....

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