Here are 7 of best Romanian stocks that could be checked by you in 2023 and beyond, as well as an alternative to chasing Romanian stocks to invest.
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).
Invest in Romanian stocks via KSA
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.
The 7 Best Romanian Stocks to Invest in May 2023
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 banking industry
- OMV Petrom (BSE: SNP) - one of the best Romanian stocks from oil and gas industry
- Romgaz (BSE: SNG) - one of the best Romanian stocks from gas industry
- BRD (BSE: BRD) - another top stock from banking industry
- Transgaz (BSE: TGN) - another top BSE stock to invest in from 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
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 5.4% and 7.9% per annum respectively. EPS and ROE are also expected to grow by 4.7% and 18.5% per year respectively.
From technical point of view, Banca Transilvania shares are in a steady downtrend since September 2021. However, signs of a trend reversal might be in place. A golden cross occurred on the TLV chart when the 50-day moving average moved up toward the 200-day moving average and crosses it. This is generally considered as a bullish sign.
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 banking industry to watch for the rest of 2023.
>> Banca Transilvania Stock: Buy, Hold, or Sell?
2. OMV Petrom (BSE: SNP) - one of the best Romanian stocks from oil and gas industry
OMV Petrom S.A. is the largest energy company in South-East Europe, with an earnings growth rate over the past year (259.6%) that exceeded the Oil and Gas industry's 99.2%. OMV Petrom is also a dividend-paying company with a current yield of 7.6% that is well covered by earnings.
From technical perspective, OMV shares are in a sideway range since the mid of 2021. However, signs of a resume in the long-term bullish trend might be in place. The breakout followed by a consolidation above the 0.4730 area, previous resistance, and actual support, might open the way to a new local higher high, above the 0.5085 – 0.5100 area.
The analyst followed by stockpedia.com consensus target price for 2023 regarding OMV Petrom SA shares is RON0.57. That is around 14.46% above the last closing price of Q1 (0.50 RON). Considering this, OMV Petrom Shares could be one of the best Romanian stocks from oil and gas industry to watch for the rest of 2023.
>> Petrom Stock: Buy, Hold, or Sell?
3. Romgaz (BSE: SNG) - one of the best Romanian stocks from 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. Romgaz is also a dividend-paying company with a current yield of 8.7% that is well covered by earnings.
From technical stance, SNG shares are in a sideway range end of September 2022, after a major retracement from record highs. However, the long-term trend remains intact while the price is traded above the major support area of 38.25 RON (which was the main resistance area before March 2022).
The analyst consensus target price for 2023 related to SNGN Romgaz SA shares is 54.12 RON. That is 37.36% above the last closing price of Q1 2023 (39.40 RON), according to stockopedia.com. With all these in mind, Romgaz SA shares could be one of the best Romanian stocks from gas industry to watch for the rest of 2023.
>> Romgaz Stock: Buy, Hold, or Sell?
4. BRD (BSE: BRD) - one of the best Romanian stocks from 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. With a current dividend yield of 10.4% that is well covered by earnings, BRD is in the top 25% of dividend payers in the Romanian market, which makes BRD shares one of the best Romanian stocks with dividend.
Technically, the price of BRD shares is a range since May 2022. The next support areas are, 11.85 and 11.00, while a potential upside price recovery would first target 14.50 and 16.00 resistance areas.
Investing.com analysts' 12-Month Price High Target is 20.50 RON, while the Average and low price targets are 15.15, respectively 11.49.
>> BRD Stock: Buy, Hold, or Sell?
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. The company had an impressive 2022, and, in terms of future growth, its annual earnings are expected to grow at 3.6% per year. EPS and ROE are also forecast to grow 3.7% and 7.6% each year respectively, while TGN's earnings (3.6% per year) are forecast to grow faster than the Romanian market (-4.7% per year), which makes Transgaz shares one of the best Romanian socks from gas and oil industry to watch for the rest of 2023.
Technically, Transgaz shares price is currently on an upside general trend since March 2022.
>> Transgaz Stock: Buy, Hold, or Sell?
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.
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 not only.
>> Electrica Stock: Buy, Hold, or Sell?
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 technical stance, after the 2022 downside correction to the general ascending trend, TeraPlast shares price is now moving sideways, in a tight range between 0.65 RON (which is the near-term key resistance) and 0.54 (next support area).
>> TeraPlast Stock: Buy, Hold, or Sell?
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.
- Dow Jones forecast and price prediction
- Nasdaq forecast and price prediction
- BET Index forecast and price prediction
An alternative to chasing the best Romanian stocks to buy now
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 Romanian Stocks via FM
Are you looking to invest in the companies’ shares from 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 5 Holdings:
- JSC KASPI KZ GLOBAL SPONSORED REG (KSPI) - 3.89%
- COMMERCIAL INTERNATIONAL BANK (COMI) - 3.16%
- JOINT STOCK COMMERCIAL BANK FOR FO (VCB) - 2.90%
- BANCA TRANSILVANIA SA (TLV) - 2.84%
- HOA PHAT GROUP (HPG) - 2.74%
Why Invest in Romanina 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.
FAQs
How many shares are listed on the Bucharest Stock Exchange (BSE)?
According to Wikipedia at the end of 2019, 83 companies were listed on the BSE Regulated Market.
What are the best stocks on the Bucharest Stock Exchange (BSE)?
Predicting the future of even the current top-performing Romanian stocks is a job even the pros haven’t yet mastered. There is no such thing like a general list containing "the best BSE stocks”, as each investor has his own strategy, risk tolerance and investment objectives. However, the above shares are some of the best Romanian stocks to watch in 2023 based on analyst coverage..
What does BSE shares mean?
"BSE shares" or "shares BSE" refers to shares of companies listed at Bucharest Stock Exchange. BSE is the acronym of Bucharest Stock Exchange.
How to buy BSE shares?
To buy BSE shares you'll need a share-dealing account with a stockbroker offering stocks listed on the Bucharest Stock Exchange. Once you have opened your account and transferred funds into it, you'll be able to search and select shares to buy and sell.
Where to find BSE share prices?
Prices of BSE shares can be viewed and analysed directly on BSE website.
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