7 high-flying Nordics stocks on my radar as markets drop

Excellent but expensive Nordic companies to pick up after a fall

Markets are in decline, and it’s time to start dreaming.

Dreaming about those expensive companies you love that may now be falling into reach.

I’m in Sweden, and I keep an extra close eye on Nordic markets.

Here are seven Nordics companies on my radar I can’t wait to scoop up if they fall.

1. Atlas Copco

An industrial oldie but goodie. Maybe the Nordic region’s best company.

And with so many global leaders up here, that’s saying a lot.

Check out how Atlas has held up some of its key financials over the past 10 years:

• 27% ROCE

• 21% ROIC

• 41% gross margin

• 49% ROE

• 8.5% EBIT growth

Again, these are averages. One year of this would be strong. Atlas has done this for a decade.

It’s currently trading at around 27x forward PE. Too high.

But if it starts dropping, I’ll think hard about scooping it up.

2. Fortnox

It’s safe to say Fortnox is one of Nordic’s best growth stories. A fintech selling easy-to-use accounting programs to startups and scaleups.

Subscription-based. Digital. Scalable. It’s a fortress of profitability, including:

• 50% 10-year average EBIT growth

• 60% 10-year average ROCE

• 37% 10-year average ROIC

• 50% 10-year average ROE

They’re down 15% or so the past month but still trade at a forward PE of 42x.

If they keep falling, I’ll come knocking.

3. EQT

EQT is one the best private equity firms in the world. A true north star.

And it’s backed by Sweden’s respected Investor AB, which gives EQT that much more street cred.

It’s Sweden’s 5th largest company by market cap, and I can see it becoming the largest. Maybe the largest private equity firm in the world too.

It trades at a forward PE of 22x, but it’s volatile and already starting to slide. Down double-digits the past month.

If the decline continues, I’ll be looking to pick some up with my own private equity.

4. Hemnet

Hemnet is Sweden’s go-to website to sell or hunt for homes.

A monopoly of sorts. With income from sellers, real estate agents, banks, ads and market research.

There’s a lot to write home about, including:

• 86% gross margin

• 40% FCF

• 25% forecasted revenue growth

• 38% average return the past 3 years

Like Fortnox, it’s also a super high-flyer. 44x forward PE.

But if it drops, Hemnet will feel right at home in my fund.

5. Harvia

Harvia is Finnish, and it makes saunas. Perfect. Its returns have been smoking hot the past half decade. Up 500%.

It has some other sizzling, 5-year figures too, like:

• 22% ROCE

• 18% ROIC

• 18% average revenue growth

It’s at 24x forward PE right now. At that price, you may get burned.

But I’ll get interested if the price starts to lose a lot of steam.

6. Novo Nordisk

Novo is up there with Atlas as one of the Nordic’s best companies. Here are some fat numbers from this diabetes and weight-loss drug giant:

• 84% gross margin

• 30% five-year average ROIC

• 80% five-year average ROCE

• 15% ten-year EBIT growth

• 20% two-year average revenue growth ahead

The share price has lost some heft the past half year. Down more than 40% to a forward PE of around 20x.

I’ve already invested a bit in Novo. I’ll keep a steady diet of bite-sized Novo investments if it stays at this level or goes lower.

7. Pandora

Pandora is the world’s biggest jeweler. It's also another sparkling Nordic company I’ve already invested in. A high margin, high return-on-capital gem.

• 80% five-year average ROE

• 50% five-year average ROCE

• 25% five-year average ROIC

• 80% gross margin

• 23% FCF

Pandora returns have lost a bit of their lustre. Down 16% the past month. And it’s already trading at a reasonable 16x forward PE and 1.7 PEG.

Any further declines would be golden.

Honorable mention

The companies above are extra promising because of high capital and equity returns.

But there are plenty of stars up north here that could get interesting at the right price. Such as:

• Kone - the Finnish elevator maker

• ABB - the Swedish/Swiss industrial giant

• DSV - the Danish trucking and transportion company

• Ericsson - the Swedish telecoms giant

• Volvo - the Swedish truckmaker

• Coloplast - the Danish healthcare company

• H&M - the Swedish clothing giant

• Securitas - the Swedish security company

• Assa Abloy - the Swedish lock maker

• Axfood - a Swedish grocery store chain with surprising ROE

• Investor & Industrivärden - two Swedish investment companies with top-notch holdings

Defence companies

I should also mention SAAB, Kongsberg and Invisio. These are three companies on my watchlist.

But instead of dropping, their shares are spiking as Europe increases defence spending.

So I don’t dare to dream.

Norway

It might be odd that no Norwegian companies - apart from Kongsberg - are on the list.

But with Norway right now, you don’t have to dream.

Prices on a lot of the good companies there - Equinor, Aker BP, Yara, Europris, Veidekke, Wallenius, Hafnia, Odfjell - are already at low.

Thanks for reading. Let me know in the comments what I’ve missed.

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Joel Sherwood invests each week and writes about what he buys, learns and earns. He’s a former journalist for Dow Jones and The Wall Street Journal, and a current bank employee. He lives in Stockholm, Sweden and started the Sherwood Investment Letter in January 2025. Purchases are not recommendations.