Swiss stock market hits record high, but 'zombie' companies languish

The Swiss stock market is experiencing a strong performance, with the Swiss Performance Index (SPI) climbing nearly 9% since the start of 2026 and crossing the 20,000-point mark for the first time. This rally mirrors similar gains seen in American and Asian markets.

Leading the charge are industrial giants like ABB, whose shares have surged by almost 40% this year, and Huber + Suhner, up 46%. These companies are benefiting from investor enthusiasm for businesses involved in data centers and the artificial intelligence boom.

However, not all Swiss industrial firms are thriving. A significant number of machinery and component manufacturers are being actively avoided by investors. Their stock valuations have plummeted to such lows that market participants are dubbing them "zombies" or "undead."

Examples include Carlo Gavazzi, whose market capitalization is only three-quarters of its book value, and Schlatter Industries, with a market cap less than 20% of its annual revenue. Other firms like Klingelnberg, Komax, Starrag, and Tornos are also trading at a fraction of their revenue, a stark contrast to their valuations just three years ago.