Why Defensive Values Are Gaining Ground Now
- Technology stocks are losing ground: After years of strong price gains driven by the gaming and AI boom, many tech stocks like Nvidia have become more volatile. The price-to-sales ratio for Nvidia is at 25.8 – indicating high valuations and potential overheating.
- Defensive stocks show strength: While tech stocks have generally declined over the past six months, defensive values like GTT have continued to rise. Such companies often benefit from stable business models and regular payouts.
Gaztransport and Technigaz: An LNG Winner
Company Profile
- Industry: LNG technology (tank systems for liquefied natural gas)
- Location: Saint-Rémy-lès-Chevreuse, France
- Dividend yield: 4.7 %
- Market situation: Benefits from the expansion of European LNG infrastructure and rising imports to Europe
Market Drivers
- Decline of Russian pipeline imports: The share of Russian natural gas in the EU market fell from over 40 % to around 11 % between 2021 and 2024.
- Increase in LNG imports: At the same time, the share of more expensive LNG deliveries has increased significantly.
- Infrastructure expansion: Europe is massively investing in new terminals and storage capacities for liquefied natural gas.
Long-term Perspective
GTT not only benefits in the short term from the current market trend but also in the long term due to the growing importance of LNG as a bridging technology in Europe’s energy mix. The company is technologically leading in tank systems for ships and storage facilities.
Comparison: Defensive vs. Growth Stocks
| Feature | Gaztransport and Technigaz | Nvidia |
|---|---|---|
| Industry | Energy/Infrastructure | Semiconductors/AI |
| Dividend Yield | ~4.7 % | <1 % |
| Price-to-Sales Ratio | Low | High (25.8) |
| Volatility | Low | High |
| Business Model | Stable/Defensive | Growth-oriented |
Conclusion
In times of increased volatility in growth stocks, defensive titles like Gaztransport and Technigaz offer investors an attractive alternative: They combine solid business models with high profitability and regular dividend payments. Especially in the current market environment, such values could therefore be particularly interesting.