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 into the list with some of 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 and, interest rates will continue to stay high, while the geopolitical uncertainty around the world may 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 2024 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 BVB Top 10 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 May 2024 - Top 10 BSE Stocks
Some of the best BSE stocks to buy in 2024 take into consideration strong business fundamentals, robust earnings profiles, and the capacity to rebound once the market regains momentum.
- OMV Petrom (BSE: SNP) - one of the best Romanian stocks from the oil and gas industry
- Hidroelectrica (BSE: H2O) - one of the best Romanian stocks from Energy production industry
- Banca Transilvania (BSE: TLV) - one of the best Romanian stocks from the banking industry
- Romgaz (BSE: SNG) - one of the best Romanian stocks from the gas industry
- BRD (BSE: BRD) - another top stock from the banking industry
- Nuclearelectrica (BSE: SNN) - the only producer of nuclear energy in Romania
- Electrica (BSE: EL) - another top stock from the energy sector
- MedLife (BSE: M) - one of the best BSE stocks from the healthcare industry
- One United Properties (BSE: ONE) - one of the best real-estate stocks traded on the BSE
- Transport Trade Services (BSE: TTS) – one of the best performing BSE stocks during the last 12 months.
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 also know that the past performance and forecasts are not reliable indicators of future results.
1. 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.
The company is forecast to grow earnings and revenue by 7.3% and 2% per annum respectively. EPS is expected to grow by 8.2% per annum, while return on equity is forecast to be 10.6% in 3 years. OMV Petrom is a dividend paying company with a current yield of 12.6% that is well covered by earnings. The dividend yield forecast in 3Y is 10.2%.
From a technical perspective, OMV shares are moving consolidating after a 2024 bull-run. Price reached an all-time high on 10th of April followed by small corrections without any technical downside pressure evidence.
Although price is currently controlled by the bulls and the upside trend remains intact, record highs could always be accompanied by the risk of some long trades closure that could result in price corrections. Near term support level is 0.67 RON, while next resistance is the recent all-time high, respectively RON0.69.
Source: bvb.ro
The analyst followed by stockopedia.com consensus target price for shares in OMV Petrom SA is RON0.69. That is 0.44% above the last closing price of RON0.69.
2. Hidroelectrica (BSE: H2O) - one of the best Romanian stocks from energy production industry
Hidroelectrica is the largest electricity producer in Romania and the main provider of technological services required in the Romanian National Energy System.
Company`s revenues and earnings are forecast to decline at 4.2% and 3.7% per annum respectively. EPS is expected to decline by 13.5% on a yearly basis, while return on equity is forecast to be 17.7% in 3 years.
Technically, Hidroelectrica shares price is currently consolidating after it failed to make a higher high while recovering from the bearish correction. This could signal a weakness for the bulls, which means that 135.00 area could be a critical one in price evolution.
The bullish scenario depends on the bulls’ capacity to push the price to a new high, while a bearish follow up should come up with a breakdown below 130.00 and lower, at RON126.00.
Source: bvb.ro
According to tradingview.com, the 9 analysts offering 1 year price forecasts for Hidroelectrica stock have a maximum estimate of 145.00, an average estimate of 125,7 and a minimum estimate of RON95.00.
3. Banca Transilvania (BSE: TLV) - one of the best Romanian stocks from banking industry
Banca Transilvania is the largest bank in Romania, with a market share getting very close to 25%.
Fundamentally, the company is forecast to grow earnings and revenue by 7.1% and 6.3% per annum respectively, while EPS is expected to grow by 3.7% per annum. Banca Transilvania SA is a dividend paying company with a current yield of 3.52% that is well covered by earnings. Next payment date is on 26th of June 2024 with an ex-dividend date of 11th of June 2024.
From a technical point of view, Banca Transilvania continued the uptrend started at mid-2023 and reached an all-time high on the 8th of April, cumulating 45% gains in the last 12 months and over 17% on a YTD level.
Given the price structure, the upside trend remains intact, although the ATH was followed by a minor correction. There is a critical short-time support around RON27.65 area, while the upside scenario may come up with a new record high, if bears
will not be able to hold the RON29.35 level.
Source: bvb.ro
Trading Economics forecasts Banca Transilvania shares to be priced at RON27.35 by the end of this quarter and at RON25.92 in one year, according to their global macro-models' projections and analysts' expectations.
4. 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, the company is forecast to grow earnings and revenue by 2.3% and 3.7% per annum respectively. EPS is expected to decline by 15.3% per annum, while return on equity is forecast to be 11.9% in 3 years. SNGN Romgaz is a dividend-paying company with a current yield of 6,63% that is well covered by earnings. Next payment date is on 26th July 2024 with an ex-dividend date of 4th July 2024.
Technically, SNG shares price continued its uptrend starting at mid-2023 and reached an all-time high at the beginning of April (RON56.40). Although price made a correction toward lower levels, long-term uptrend is still intact.
Price is currently consolidating around 51.50 – 52.00 area, which may prove itself a critical one given the confluence with older highs. If bearish scenario persists, the price may find support at 49.50 and lower around 45.00. On the other hand, if bulls manage to keep the 51.50 area, we may see SNG stock retesting the ATH or higher in new territories.
Source: bvb.ro
The analyst consensus target price for shares in SNGN Romgaz SA is RON55.30. That is 7,17% above the last closing price of RON51.60, according to stockopedia.com.
5. 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.
The company is forecast to grow earnings and revenue by 1.8% and 2.8% per annum respectively. EPS is expected to decline by 0.3% per annum, while return on equity is forecast to be 14.9% in 3 years. BRD - Groupe Société Générale is a dividend paying company with a current yield of 4.6% that is well covered by earnings. Next payment date is 6th June 2024 with an ex-dividend date of 16th May 2024.
Technically, BRD shares price continued the positive evolution starting at mid-2023 and reached a multi-year high at the beginning of April (22.00 RON). Although the price immediately corrected towards RON20.00 level, uptrend remains intact for the time being. A continuation of the corrective movement would initially target the annual trend line support and lower, the 18.00 RON area. In contrast, if the correction fades, we may assist to a consolidation around 22.00 area before challenging new local highs.
Source: bvb.ro
The analyst consensus target price for shares in BRD Groupe Societe Generale SA is RON18.54. That is 11.29% below the last closing price of RON20.90, according to stockopedia.com.
6. Nuclearelectrica (BSE: SNN) - the only producer of nuclear energy in Romania
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.
Fundamentally, Nuclearelectrica's revenue and earnings are forecast to decline at 12% and 13.9% per annum respectively. EPS is expected to decline by 13.2% per annum, while return on equity is forecast to be 18.5% in 3 years.
S.N. Nuclearelectrica is a dividend paying company with a current yield of 7.69% that is well covered by earnings. Next payment date is on 21st June 2024 with an ex-dividend date of 30th May 2024.
Looking at price evolution, Nuclearelectrica shares are being trade within an ascending channel since mid-2021, as seen on the daily SNN chart below, as a part of a general uptrend lasting more than 7 years. However, the price range seems to be narrowing inside the channel, failing to reach higher highs under a weak momentum.
Although the uptrend has never been questioned during the mentioned period, this could signal a potential bull weakness. Near term support levels are 47.30 and below the 25.20 area, while a potential leg up, could find resistance at 50.00 and higher around RON52.30.
Source: bvb.ro
According to Trading Economics' forecasts, Nuclearelectrica’s shares are expected to be priced at RON48.62 lei by the end of this quarter and at RON46.07 in one year, according to their global macro models projections and analysts' expectations.
7. Electrica (BSE: EL) - another top stock from the energy sector
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.
Societatea Energetica Electrica is forecast to grow earnings and revenue by 1.3% and 5.9% per annum respectively. EPS is expected to grow by 2.3% per annum, while return on equity is forecast to be 9.1% in 3 years.
Societatea Energetica Electrica is a dividend paying company with a current yield of 0,9%. Next payment date is on 21st June, 2024 with an ex-dividend date of 30th May 2024.
Technically, Electrica shares price continued its ascending evolution started at the end of 2023 and is currently consolidating around RON13.00 area. Looking behind, price has completed an inverted Head & Shoulders bullish pattern and recently reached its price target (RON13.00 area).
Looking at the big picture, a bullish long-term scenario would initially target the 14,00 area, while a descending correction could find support at 12,20 and lower around RON11,50 area.
Source: bvb.ro
The analyst’s consensus target price for shares in Societatea Energetica Electrica SA is RON12.19. That is 7.65% below the last closing price of RON13.20, according to stockopedia.com.
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.
Fundamentally, MedLife is forecast to grow earnings and revenue by 70.4% and 11.2% per annum respectively. EPS is expected to grow by 74.4% per annum, while return on equity is forecast to be 5.7% in 3 years.
From a long-term technical perspective, MedLife shares are being trade within a range since mid-2022 as seen on the daily M shares chart below. Although price is making lower highs, which reflects a downside pressure, bulls managed to maintain the multiyear key support area RON3.80 - 4.00.
However, price seems to complete a descending triangle which is a classic bearish pattern. If this scenario is confirmed, we may see a further breakdown targeting lower levels. On the other hand, if the recent price action proves itself to be an accumulation, price could initially find resistance at 4.3 level or higher, around RON4.6 area.
Source: bvb.ro
According to simplywall.st, MedLife`s 12-month shares price target (RON4.98) is 23% higher than the current share price (RON4.05) and analysts are within a statistically confident range of agreement.
9. 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.
One United Properties' revenue and earnings are forecast to decline at 12.7% and 17.6% per annum respectively while EPS is expected to grow by 25.1% per annum. One United Properties is a dividend paying company with a current yield of 2.31% that is well covered by earnings.
One United shares (BSE: ONE) price started the 2nd quarter of the year with a massive sell-off and lost more than 20% in 2 weeks, reaching a one year low around RON0.8660 level. Although RSI indicator is currently in an oversold territory, the bearish momentum is still visible on the daily chart.
One United shares (BSE: ONE) price started the 2nd quarter of the year with a massive sell-off and lost more than 20% in 2 weeks, reaching a one year low around RON0.8660 level. Although RSI indicator is currently in an oversold territory, the bearish momentum is still visible on the daily chart.
If the bears will continue controlling the price, a further decline could find support around 85.50 and lower, around RON83.80 level. On the other hand, a bounce back may target previous support levels that now became resistance, such as 0,8840 and higher, RON0.9000.
Source: bvb.ro
According to simplywall.st, target price (RON1.20) is 37.8% higher than the current share price (RON0.87) and analysts are within a statistically confident range of agreement.
10. Transport Trade Services (BSE: TTS) - one of the most performing BSE stocks during the last 12 months.
Transport Trade Services S.A. provides freight forwarding services in Romania. It is involved in the river/maritime and land transport of bulk and packed commodities goods, handling of goods and equipment, and door-to-door transportation activities.
Transport Trade Services` (TTS) revenue and earnings are forecast to decline at 3.3% and 29.9% per annum respectively. EPS is expected to decline by 30% per annum, while return on equity is forecast to be 13.9% in 3 years. TTS (Transport Trade Services) is a dividend paying company with a current yield of 1.94% that is well covered by earnings.
Technically, after an impressive evolution during 2023, TTS stock price started 2024 with a consolidation, followed by a correction in early March, after reaching an all-time-high (RON30.10) on 29 February. Currently, price seems to complete a symmetrical triangle pattern on the daily chart, which could eventually be solved either bullish or bearish. In such circumstances, technical oriented traders are usually patient while monitoring the volumes and a potential breakout from the pattern. An upside scenario could come along with new record highs, while a bearish one may target lower levels such as 24.50 and below, RON22.00.
Source: bvb.ro
According to tradingview.com, the analyst offering 1 year price forecasts for Transport Trade Services SA has an estimate of RON30.40.
Are these the best Romanian stocks to invest in right now?
Not necessarily. These are some of the best BSE stocks to watch in 2024 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 ratio. 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 analyzing 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 FM Holdings:
- LK CSH FND TREASURY SL AGENCY - 10.76%
- SC KASPI KZ GLOBAL SPONSORED ADS - 8,21%
- JOINT STOCK COMPANY NATIONAL GDR - 2.97%
- HOA PHAT GROUP - 2.96%
- PETROM SA - 2,49%
- USD CASH - 2.48%
- HIDROELECTRICA SA - 2.35%
- BANCA TRANSILVANIA SA - 2,33%
- VINHOMES - 2.27%
- SOUTHERN COPPER CORP - 2,26%
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 $450M in assets under management (AUM).
- The fund reached a 6.54% YTD return, while the 1Y total return is standing at 14.82%, as of May 9th, 2024. However, past performance is not a reliable indicator of 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 unpredictable oscillations 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 some of 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:
- https://bvb.ro/
- https://simplywall.st/stocks/ro/market-cap-large
- https://www.stockopedia.com/
- https://www.investing.com/
- https://tradingeconomics.com/
- https://www.tradingview.com/