Which IBEX 35 stocks offer the best investment opportunities for 2024-2025?

In this article, we analyze leading companies in key sectors with growth prospects in Spain.

What is the IBEX 35?

Since the early 90s, the IBEX 35 has been Spain’s answer to the UK’s FTSE 100 and America’s S&P 500. It is Spain’s most important stock index and encompasses the finance, energy, telecomm, and consumer goods sectors. Its 35 companies are the country’s leaders in capitalization, trading volume, and liquidity.

The IBEX 35 is tracked as a faithful indicator of Spain’s economy, and its bullishness or bearishness reflect the country’s market sentiments. By extension, since Spain’s economy is inextricably linked with other EU economies, you can use the IBEX 35 as a pretty good indicator of Europe’s overall economic condition.

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Top IBEX 35 stocks for investing in 2024-2025

The top of the crop of the IBEX 35 is in renewable energy, banking, and stainless steel production. These companies are financially very strong, and deeply embedded in the European Union’s economy overall.

Renewable energy

Some of Spain’s renewable energy outfits are leaders of the European sustainability movement. Like its legendary Don Quixote, the country is a champion of windmills (and also solar panels). Companies in that sector enjoy many government incentives, and a hand-in-glove relationship with policy makers.

Banking sector

The banking sector also remains key in the Spanish economic landscape. Some of the country’s most important financial entities are capitalizing on their geographical expansion, especially into growing markets in Latin America, and have adopted digitization strategies that improve their operational efficiency and their ability to serve an increasingly digital customer base. These strategies, combined with their ability to generate income in a framework of rising interest rates, make them attractive to investors.

Spain’s high-end stainless steel game is fundamental to the country’s, as well as the continent’s, construction, auto, and heavy machinery manufacturing industries. This sector has shown resilience amid adversity in the global commodities market. Telecommunications and consumer goods are throwing everything they can at innovating their customer experience in a fierce bid to best their competitors.

In the rest of this article, we discuss in detail some of the main stocks recommended by analysts, highlighting their strengths and the reasons behind their attractiveness as investments in the current economic context, which is characterized by energy transition, digitization, and post-pandemic recovery.

CaixaBank

CaixaBank is one of the most prominent banking entities in Spain, resulting from the unification between La Caixa and Banca Cívica. The entity is a key player in the financial sector and is expected to continue benefiting from the economic rebound and favorable conditions in credit markets. Its share buyback program and focus on digitization and retail banking position it well for 2024-2025, with confidence in the growth of its margins and shareholder profit.

Aena S.M.E

Aena is the main airport operator in Spain and the largest in the world in terms of passenger numbers. As global air traffic continues to recover after the pandemic years, the outlook is optimistic. The company has shown a remarkable ability to adapt to changes in demand and is well-positioned to capitalize on the increase in international travel, making it an attractive option for investors interested in the infrastructure and transportation sector.

Acerinox

Acerinox is a Spanish multinational and one of the world’s leading producers of stainless steel. Its strong presence on the U.S. market and improvement in production margins have enabled it to significantly reduce its debt, strengthening its financial situation. Thanks to the growing demand for steel for industrial and technological applications, Acerinox remains an interesting option in the materials sector.

Iberdrola

Iberdrola, a global leader in renewable energies, is in an excellent position for capitalizing on the boom in clean energy investments. Its prospects in wind and solar energy projects, both in Europe and other regions, along with its transition towards a green economy, make it a defensive stock with good expansion capacity in the energy sector. Additionally, Iberdrola is committed to decarbonization, attracting investors interested in sustainable companies.

Banco Bilbao Vizcaya Argentaria SA

BBVA is another major player in the Spanish banking sector, with a significant international presence, especially in Latin America. Its territorial diversification and ability to adapt to new trends in digital banking and sustainability allow it to remain competitive in global markets. BBVA has shown a solid recovery after the pandemic, and analysts expect it to continue offering good returns.

Banco Sabadell

Banco Sabadell is one of Spain’s medium-sized banking entities that has experienced a notable recovery in recent years. Its focus on improving operational efficiency and growth in digital services have enhanced its medium and long-term outlook. Although it faces strong competition in the sector, the bank is expected to continue growing steadily thanks to the improvement of its credit margins and its ability to adjust to a constantly changing economic environment.

How to invest in stocks with FBS

Investing in stocks with the right broker should be easy and accessible. FBS is a global broker that offers users the opportunity to access various financial instruments, including IBEX 35 stocks.

With FBS, investors can manage their portfolios and perform market analysis from a secure and reliable platform.

You can also trade currencies, commodities, indices, and whatever else your heart desires, on the global markets. Tech support and a global community of traders are at your fingertips 24/7. FBS is the ideal vessel for sailing way out beyond your horizons and returning with success and victory.

FAQ

Is it safe to invest in IBEX 35 stocks?

It’s safe as long as you do it through a regulated and accredited broker like FBS. The fact that the IBEX 35 is made up of some of Spain’s largest and most established companies can provide some stability, but any market always carries risks.

Where can I buy Spanish IBEX 35 stocks?

You can buy IBEX 35 stocks through online broker platforms like FBS, that provide access to international stock markets. You can also acquire shares directly on the Madrid Stock Exchange through other financial links or banks.

Is it legal to buy stocks in Spain?

As long as you buy the stocks through a regulated entity, like the National Securities Market Commission (CNMV), you can buy stocks legally on the Madrid Stock Exchange, even if you’re a non-resident.However, the taxes is where they’ll get you. If you’re a non-resident, you may be required to pay taxes in both Spain and the country where you live.

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