Here are 10 of the best Romanian stocks to watch in 2024 and beyond, as well as an alternative way to gain exposure to the performance of these top BSE stocks.
There are literally thousands of publicly traded companies you can invest in, not to mention the many exchange-traded funds (ETFs) you can buy, so it's not surprising many investors don't know where to begin.
Before we get to the best Romanian stocks, let's acknowledge three caveats:
Choosing the best Romanian stocks to invest in today heavily depends on your personal financial situation. To get a feel for where you stand, read our guide on how to invest in stocks. It walks you through the process of screening stocks, allocating assets, and when it makes sense to buy shares of stock. These stocks are considered long-term investments. If inflation stays elevated longer than expected, interest rates continue to rise, the uncertainty facing the banking system in 2023 persists, or some large economies fall into a deep recession, it's entirely possible that most or all of these could decline in the near term. The list below isn't meant to be exhaustive one. Instead, they're long-term Romanian stocks that worth considering for 2023 and beyond. One of the one-step ways to diversify your holdings is to build the core of your portfolio around something like the iShares MSCI Frontier and Select EM ETF (FM).
Let's get to the list of the 10 best Romanian stocks to buy now and hold for the long term, based on analysts' coverage and the latest BSE stock price predictions.
Best Romanian Stocks for April 2024 - Top 10 BSE Stocks
Some of the best BSE stocks to buy in 2023 take into consideration strong business fundamentals, robust earnings profiles, and the capacity to rebound once the market regains momentum.
- Banca Transilvania (BSE: TLV) - one of the best Romanian stocks from the banking industry
- OMV Petrom (BSE: SNP) - one of the best Romanian stocks from the oil and gas industry
- Romgaz (BSE: SNG) - one of the best Romanian stocks from the gas industry
- BRD (BSE: BRD) - another top stock from the banking industry
- Transgaz (BSE: TGN) - another top BSE stock to invest in from the oil and gas industry
- Electrica (BSE: EL) - one of the best dividend stocks on the BSE
- TeraPlast (BSE: TRP) - one of the best Romanian stocks from chemical and building materials industry
- MedLife (BSE: M) - one of the best BSE stocks from the healthcare industry
- Nuclearelectrica (BSE: SNN) - the only producer of nuclear energy in Romania and one of the best BSE dividend stock
- One United Properties (BSE: ONE) - one of the best real-estate stocks traded on the BSE
The Romanian stocks highlighted on this list are sourced from industry analysts, but they may not be a perfect fit for your portfolio. Before you decide to purchase any of BSE stocks listed based on third party price predictions, do plenty of research to ensure they are aligned with your financial goals and risk tolerance. You should know also the past performance and forecasts are not reliable indicators of future results.
1. Banca Transilvania (BSE: TLV) - one of the best Romanian stocks from banking industry
Fundamentally, Banca Transilvania is forecasted to grow earnings and revenue by 2.4% and 5.6% per annum respectively. EPS is expected to decline by 1.5%. Return on equity is forecast to be 17.3% in 3 years.
Banca Transilvania is a dividend-paying company with a current yield of 4.41% that is well covered by earnings. The next payment date is on 6th November, 2023 with an ex-dividend date of 20th October, 2023.
From a technical point of view, Banca Transilvania shares reversed the downtrend that started in September 2021 and gained over 30% during Q3 2023. A golden cross occurred on the TLV chart when the 50-day moving average moved up toward the 200-day moving average and crossed it. This bullish sign was confirmed and pushed TLV as one of the best Romanian listed companies and the main driver of the BSE top 10 stocks.
The analyst followed by stockpedia.com forecasts Banca Transilvania SA shares price in 2023 to target 25.63 RON level. That is around 30% above the closing price of Q1 2023, which positions Banca Transilvania SA shares as one of the best Romanian stocks from the banking industry to watch for the rest of 2023.
2. OMV Petrom (BSE: SNP) - one of the best Romanian stocks from the oil and gas industry
OMV Petrom S.A. is the largest energy company in South-East Europe.
OMV earnings are forecasted to decline at an annual rate of -5.4% and its revenue is expected to decline at -6.2% annually while EPS is expected to decline by 8.2%. Return on equity is forecast to be 10.2% in 3 years. OMV Petrom is a dividend paying company with a current yield of 14.71% that is well covered by earnings.
From technical perspective, OMV shares are in an uptrend that started at the beginning of 2023. Although, price is retracing bulls seem to still be in control as main support level (previous resistance) 0.46 remains intact. Near term support level is 0.53. A rebound at this level may target new all-time highs.
3. Romgaz (BSE: SNG) - one of the best Romanian stocks from the gas industry
SNGN Romgaz SA is the largest natural gas producer in Romania and one of the largest producers in Eastern Europe, being responsible for producing around 40% of the total natural gas consumption in Romania. From a fundamental perspective, SNGN Romgaz's earnings are forecasted to decline at an annual rate of -2.6% and its revenue is expected to decline at 0% annually. EPS is expected to decline by 9.5%. Return on equity is forecast to be 14.5% in 3 years. SNGN Romgaz is a dividend paying company with a current yield of 7.71% that is well covered by earnings. Dividend yield forecast in 3 years is forecasted to be 8.7%.
Technically, SNG shares price made the breakout from a previous range dating from September 2022 and is currently testing the 45.00 RON level. A break followed by a consolidation above this area would target the intermediate 48.80 resistance and above the all-time high 51.85.
4. BRD (BSE: BRD) - one of the best Romanian stocks from the banking industry
BRD Groupe Société Générale is a one of the top Romanian banks with headquarters in Bucharest having about 2.2 million customers and operating a network of around 870 branches. BRD - Groupe Société Générale's earnings is forecasted to decline at -1.1% per annum while its annual revenue is expected to grow at 1.4% per year. EPS is expected to decline by 3.6%. Return on equity is forecast to be 15.9% in 3 years.
According to the Q2 2023 earnings report, revenue is forecast to grow 1.4% p.a. on average during the next 3 years, compared to a 3.7% growth forecast for the Banks industry in Europe.
Technically, the price o BRD shares recently broke above the range resistance at 15.00 and a new short-term uptrend movement seems to have started. An upside continuation would first target the 16.40 area and above 17.60. However, this could also be a short-term correction for the 2022 downtrend. If price fails to make higher highs, the upside movement may become vulnerable.
The analyst consensus target price for shares in BRD Groupe Societe Generale SA is RON15.02. That is 9.64% above the last closing price of RON13.70, according to stokopedia.com. Analysts covering BRD Groupe Societe Generale SA currently have a consensus Earnings Per Share (EPS) forecast of RON2.13 for the next financial year.
5. Transgaz (BSE: TGN) - one of the best Romanian stocks from oil and gas industry
Transgaz is a state-owned company, which is the technical operator of the national natural gas transmission system in Romania.
According to simplywall.st, S.N.T.G.N. Transgaz's revenue is forecasted to decline at -6.8% per annum while its annual earnings is expected to grow at 27.5% per year. EPS is expected to grow by 27.5%. Return on equity is forecast to be 6.8% in 3 years. TGN's earnings (27.5% per year) are forecast to grow faster than the RO market (-3.6% per year)., which makes Transgaz shares one of the best Romanian socks from gas and oil industry to watch for the rest of 2023 and beyond.
Despite price`s major correction at the beginning of May, the mid-term uptrend remains intact as long as the main support level at 16.00 is valid. A continuation of the bullish scenario involves a breakout above the 19.50 which is the next major resistance level.
According to stokopedia.com, the analyst consensus target price for shares in Societatea Nationala de Transport Gaze Naturale Transgaz SA is RON18.75. That is 2.46% above the last closing price of RON18.30.
Analysts covering Societatea Nationala de Transport Gaze Naturale Transgaz SA currently have a consensus Earnings Per Share (EPS) forecast of RON1.13 for the next financial year.
6. Electrica (BSE: EL) - one of the best Romanian stocks, with the most stable dividend yield on the BSE
Electrica is one of the strongest representatives of the energy industry in Romania, with a permanent presence for over 125 years, and a reliable operator for the Romanian energy market. With a team of over 8000 employees at the end of 2022, the company is the second-largest employer in the energy sector and a major contributor to the state budget.
From technical point of view, Electrica shares price is currently attempting to start an uptrend after the ascending breakout, above the resistance of the general 2021-mid 2022 downtrend. An inverted Head and Shoulders pattern may be close to be completed, whereas its neckline (RON9.70) is currently tested. A confirmation of this scenario may trigger a major upside price movement if the breakout of the neckline would occur alongside a volume increase.
Electrica is the company with the most stable dividend yield on the BSE, ranging between 5.2% and 7.3% in the period 2015-2022, distributing total dividends of about 2 billion lei. Considering this, Electrica shares might be one of the best Romanian stocks for dividend investors to watch for the rest of 2023 and beyond.
Analysts covering Societatea Energetica Electrica SA currently have a consensus Earnings Per Share (EPS) forecast of RON1.13 for the next financial year.
7. TeraPlast (BSE: TRP) - one of the best Romanian stocks from chemical and building materials industry
TeraPlast SA is the parent company of TeraPlast Group - one of the largest Romanian manufacturers of construction materials. The companys' High Growth Earnings are expected to grow significantly over the next 3 years, while its current yield of 26.0% is well covered by earnings. Having all these in mind, TeraPlast is one of the best Romanian stocks to watch for the rest of 2023, both from High Growth Earnings and dividend yield perspective.
From a technical perspective, after the 2022 downside correction to the general ascending trend, TeraPlast shares price is now moving sideways, in a range between 0.65 RON (which is the near-term key resistance) and 0.46 (next support area).
8. MedLife (BSE: M) - one of the best BSE stocks from the healthcare industry
MedLife (BSE: M) - one of the best BSE stocks from the healthcare industry.
The company is a healthcare provider company based in Romania founded in 1996. The chain of clinics owned by MedLife SA is composed of seven hyper clinics, eight own analysis laboratories and 28 general medical centers, having partnerships with more than 110 clinics throughout the country.
From a technical point of view, Medlife shares are now in a sideway evolution since May 2023. Main resistance level is situated at 5.00, while near term support is at 4.42.
According to investing.com, analysts 12-Month High Price Target is 7.03 RON, while the average and low-price targets are 5.62, respectively, 5.00.
Trading Economics forecasts MedLife shares to be priced at 4.45 by the end of this quarter and at 4.17 in one year, according to their global macro models projections and analysts expectations.
9. Nuclearelectrica (BSE: SNN) - the only producer of nuclear energy in Romania and one of the best BSE dividend stock
Societatea Nationala Nuclearelectrica S.A. (BSE: SNN) is the only producer of nuclear energy in Romania and of the fuel related to the technology used, CANDU 6.
Nuclearelectrica's earnings are forecasted to decline at an annual rate of -7% and its revenue is expected to decline at -5.6% annually. EPS is expected to decline by 7%. Return on equity is forecast to be 17% in 3 years.
After an impressive 2 years general uptrend, SNN shares are currently consolidating in slightly upside price channel since mid-2022. Although prices are making higher highs, bulls seem to have lost momentum. In a bullish scenario, we could see price attempting to reach a new all-time high, above the 52.00 level. In contrast, a correction would first target the 43.00 area and lower, 41.50 RON.
According to investing.com, analysts 12-Month High Price Target is 60.00 RON, while the average and low-price targets are 50.51, respectively, 35.23.
10. One United Properties (BSE: ONE) - one of the best real-estate stocks traded on the BSE
One United Properties stands as a leading green investor and developer of residential, mixed-use, commercial, and office real estate in Bucharest, Romania. Company's purpose is to create thriving, sustainable communities by developing state-of-the-art, energy-efficient buildings and to drive enduring value growth for its stakeholders.
The company is forecasted to grow earnings and revenue by 9.1% and 16% per annum respectively. EPS is expected to grow by 11.5%. Return on equity is forecast to be 17% in 3 years. One United Properties is also a dividend paying company with a current yield of 2.46% that is well covered by earnings.
From a technical perspective, ONE shares have had a mixed evolution since the company became public in 2021, with price being trapped in a range since mid 2022.
Bulls are currently testing the resistance of the range in the 0.99 area. A break above it would target the historical highs towards 1.09, while a bounce below could initially find support at 0.90 or lower, at 0.84, which is also the support of the range.
Investing.com analysts' 12-Month Price High Target is 1.30 RON, while the Average and Low-Price targets are 1.30, respectively 0.92 RON.
Are these the best Romanian stocks to invest in right now?
Not necessarily. These are some of the best BSE stocks to watch in 2023 based on analyst coverage, and defensive and recovery opportunities. But that doesn't mean that they're the best Romanian stocks to invest in. Predicting the future of even the current top-performing Romanian stocks is a job even the pros haven’t yet mastered. And the best stocks to buy for your portfolio aren’t necessarily the best stocks for someone else’s portfolio.
For example, a young person who is looking to grow their retirement savings aggressively might gravitate toward growth stocks for their high-risk, high-reward volatility. On the other hand, a retiree who is looking for passive income might prefer predictable dividend stocks, which are relatively stable and have a history of consistently growing their dividend payments over time.
How to find the best Romanian stocks to buy now?
Choosing good stocks for your portfolio is a relatively time-consuming task, and you need to look beyond performance metrics like the ones on this page. Yes, it's a solidly good sign if a stock can outperform during periods of market volatility and the broad market declines like we've seen in 2022. But as referenced above, there are several other factors to consider.
Beyond your own personal risk tolerance and how long you plan to invest, strategic investors do significant research into a company before buying its stock. They perform fundamental analysis, which involves looking at the company's financial statements and considering how economic factors might influence the stock's future performance.
Many investors also do technical analysis of a stock, which means analysing historical movements in the stock's price to attempt to predict future movements. If you want to go this route, we have detailed overviews of how to buy stocks and how to trade stocks, including key terms to know.
An alternative to chasing the best Romanian stocks to buy now (Top 10 BSE)
If all the above sounds like a lot of work, it is. The fact that picking Romanian stocks is so difficult leads many investors to turn to exchange-traded funds (ETFs), which bundle many BSE stocks together.
When individual stocks come together into a diversified portfolio via index funds and exchange-traded funds, they have a lot of power: The iShares MSCI Frontier and Select EM ETF (FM) seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of the value of its net assets, plus the amount of any borrowings for investment purposes, in equity securities of issuers economically tied to frontier markets and issuers economically tied to emerging markets, or in depositary receipts representing such securities.
The Fund is an actively managed exchange-traded fund (“ETF”) and does not seek to replicate the performance of a specified index. In selecting investments for the Fund, BFA uses optimization techniques relative to the Benchmark to provide exposure to frontier markets and select emerging markets while considering, among other things, regulatory requirements, market limitations, and repatriation restrictions as determined by BFA. As a result of the optimization techniques, the performance of the Fund may materially differ from that of the Benchmark.
Within funds, the winners balance out the losers — and you don’t have to forecast which is which. That’s why many financial advisors think low-cost index funds and exchange-traded funds should form the basis of a long-term portfolio.
Investing in Top 10 Romanian Stocks via FM
Are you looking to invest in the companies’ shares from a well-established country that is undergoing economic transformation? When the iShares MSCI Frontier and Select EM ETF (FM) launched in 2012, investors gained an easy way to access broad exposure to frontier and emerging markets. The fund is a market-cap-weighted index that tracks the broad-based index composed of equities listed on the Bucharest Stock Exchange (known as BSE shares) and other frontier and emerging capital markets. The ETF is traded on the NYSE and is an iShares product powered by BlackRock.
Top 10 BSE Holdings:
- JSC KASPI KZ GLOBAL SPONSORED REG (KSPI) - 5.49%
- COMMERCIAL INTERNATIONAL BANK (COMI) - 3.96%
- HOA PHAT GROUP - 3.63%
- JOINT STOCK COMMERCIAL BANK FOR FO (VCB) - 2.94%
- PETROM SA - 2.71%
- VIET NAM DAIRY PRODUCTS - 2.65%
- VINGROUP - 2.60%
- BANCA TRANSILVANIA SA (TLV) - 2.59%
- MASAN GROUP CORP - 2.35%
- VINHOMES - 2.33%
Why Invest in Top 10 BSE stocks via FM?
- Access to the Romanian stock market and get exposure to a country with growth potential.
- Launched in 2012, the investment fund is approaching $1B in assets under management.
- The average annual total return since inception is 3.4% (USD), while the 3y total return is 7.43% - an impressive return considering how challenging 2022 was. However, past performance is not a reliable indicator for future results.
Final words on the best Romanian stocks
Before you consider Romanian stocks, you'll want to hear this.
If you're starting on your investing journey (or if you want a sanity check), please read through our how-to-invest in stocks guide. It goes through all the basics, from how to get started to how to determine your personal investing strategy, to how much of your money to invest in stocks.
Although analysts are bullish on each of these stocks and think they are good Romanian stocks to buy right now, they might not all be the best choices for investors who don't yet have established and diversified portfolios. Even the most stable companies on this list aren't immune to volatility in their stock prices, especially over short periods.
For this reason, if you're just getting started, you'll also want to consider a well-diversified option like the iShares MSCI Frontier and Select EM ETF (FM).
Free resources
Before you start investing in the best stocks for your portfolio, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a better trader or make more informed investment decisions.
Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how leveraged trading works – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
Sources:
- Bursa de Valori Bucuresti. Viitorul e al celor care investesc in el ! (bvb.ro)
- Largest Romanian (BET) Stocks by Market Cap - Simply Wall St
- Stockopedia | Stock Screening, Portfolio Analysis & Ratings
- Investing.com - Stock Market Quotes & Financial News
- TRADING ECONOMICS | 20 million INDICATORS FROM 196 COUNTRIES