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Full Article seekingalpha.com

<p>It has been almost two years since I <a href="https://seekingalpha.com/article/4695312-swatch-the-luxury-watch-slowdown-risk-rating-downgrade">last wrote</a> about the Swiss watch company, The Swatch Group AG (<a href="https://seekingalpha.com/symbol/SWGAY#hasComeFromMpArticle=true#source=section%3Amain_content%7Cbutton%3Abody_link">OTCPK:SWGAY</a>) (<a href="https://seekingalpha.com/symbol/SWGAF#hasComeFromMpArticle=true#source=section%3Amain_content%7Cbutton%3Abody_link">OTCPK:SWGAF</a>), of brands like Longines and Tissot. At that time, I</p>
<h1>The Swatch Group: 4 Reasons To Buy Now (Rating Upgrade)</h1>
<h2>Summary</h2>
<ul>
<li>The Swatch Group AG is upgraded to a 'Buy', driven by a robust H2 2025 turnaround and exceptionally low forward P/E.</li>
<li>SWGAY’s Q4 2025 saw healthy sales growth, with China and the Americas seeing encouraging trends. While the margin contracted, it can at least partly be attributed to investments and strategic decisions.</li>
<li>Substantial growth and margin expansion are expected for 2026, while the forward P/E is low. Risks from both competitors and the market exist, but there's still a Buy case here.</li>
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</ul>
<p>Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.</p>
<p>Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.</p>

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