Manufacturing companies Daimler Truck Holding AG (DE:DTG) and Infineon Technologies AG (DE:IFX) have the perfect score on the TipRanks Smart Score tool. Additionally, analysts predict that the share prices of both stocks could increase by more than 30%.
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This tool has a scoring system that is based on the data derived from eight different parameters, such as ratings, news sentiment, insider activity, fundamentals, etc. Through this analysis, a score is then assigned to every stock, ranging between one and ten, with ten being the best.
When compared, the performance of high-scoring stocks surpassed the returns of the overall market benchmarks. With the prevailing macroeconomic headwinds in the market, this tool gives investors the confidence to pick stocks with a score of 10 and safeguard their portfolios.
Let’s discuss these German stocks in detail.
Daimler Truck Holding AG
Daimler is the leading vehicle manufacturer in the world, operating in the commercial segment.
After unsteady movements and touching a low point in September 2022, the Daimler stock has recovered with a 20% gain in the last three months. The company’s extraordinary performance in its quarterly numbers played an important role in pushing the stock price up.
In its third-quarter results for 2022, the company posted a huge increase of 159% to its earnings of €1.2 billion. The number even surpassed the analyst consensus of €1.1 billion. Unit sales, which increased by 27%, combined with higher prices and favorable exchange rates drove the growth for the company in this quarter. The total revenue of €13.5 billion was 47% higher than in the third quarter of 2021.
With such promising numbers, the company raised its full-year revenue guidance from €40-€50 billion to €50-€52 billion.
On the flip side, the company faced some headwinds due to obstacles in the supply chain. This in turn hit the production numbers and created a demand-supply imbalance. However, with supply disruptions subsiding, the company hopes to end the year on a high note.
Daimler Truck Share Forecast
According to TipRanks’ analyst consensus, Daimler stock is a Strong Buy. The stock has a total of 10 ratings, of which eight are Buy.
The DTG average target price is €41.96, implying an upside of 38.4%.
Tom Narayan from RBC Capital has the highest target price on the stock at €53, which is 75% higher than the current price level. Narayan mainly covers automobile manufacturers from the UK, U.S., and German markets.
Infineon Technologies AG
Infineon Technologies is a big name in the semiconductor manufacturing business and has a presence in more than 90 countries worldwide. The company’s product range includes sensors, chips, wireless connectivity products, security and smart card solutions, microcontrollers, and many more.
The company’s stock has been creating quite a buzz lately after gaining 23% in the last three months. In the longer term of three years, the company’s stock has generated a return of 48% for its shareholders.
Last month, the company posted its fourth-quarter and full-year numbers, which justified the sudden growth in the share prices. For the full year, revenues were at €14.2 billion, implying a growth of 29% over 2021. The company is highly optimistic for 2023 and has a revenue goal of €15.5 billion.
On the expansion front, Infineon is planning to invest €5 billion in a new manufacturing site in Dresden, Germany. This would be the company’s largest investment to date, with the goal of increasing revenue levels.
Is Infineon a Good Stock to Buy?
According to TipRanks’ analyst consensus, Infineon’s stock has a Moderate Buy rating.
The IFX target price is €39.88, which shows a change of 34% from the current price level of €29.75.
Conclusion
Analysts have gained confidence in both Daimler and Infineon after they reported high growth numbers in their results. Given the past performance of such high-scoring companies, these stocks with a score of 10 are poised for significant upside.
