As a curious investor, it is always important to push your limits and look for options beyond the traditional markets. Germany, one of the biggest markets in Europe, presents one such opportunity to investors.
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The German economy was hit hard after the war in Ukraine, which in turn pulled down the stocks, giving the investors a buying opportunity. Furthermore, the strengthening of the US dollar against the Euro gives American investors an edge in gaining those additional returns.
Therefore, we have used the TipRanks Trending Stocks tool and picked insurance giant Allianz (DE:ALV), pharmaceutical company Bayer (DE:BAYN), and logistics player Deutsche Post (DE:DPW) from the German markets.
During these trying times, such tools can give investors the confidence they need to make an informed decision.
Let’s see these stocks in detail.
Allianz
Allianz is a global insurance and asset management company based in Germany, serving customers in more than 70 countries. It is the largest player in the insurance market in Germany.
The company enjoys a competitive advantage in Germany and also has a strong international presence. This was clearly reflected in the third-quarter results, along with a favorable outlook for the future. Allianz posted a 7.4% increase in its operating profits to €3.5 billion. The highlight was the record performance in the property-casualty business with higher premiums and a lower expense ratio.
The company is on track with its targets and expects to complete this year with an operating profit of €13.4 billion.
The stock is a gem for income investors, with a dividend yield of 5.29% against the sector average of 2.04%. Also, the company has been consistent with its dividend payout over the last 10 years.
Allianz Stock Forecast
According to TipRanks’ rating consensus, ALV stock has a Moderate Buy rating, based on six Buy and five Hold recommendations.
The ALV target price is €230.7, with a high and a low forecast of €271 and €210, respectively. The price target implies a change of 13.5% from the current price level.
Bayer
Based in Germany, Bayer is among the leading pharmaceutical companies in the world. The company’s product portfolio focuses on prescription products, consumer health, and agriculture.
The company reported better-than-expected results in its third quarter, with higher sales as well as earnings. The group sales in the quarter jumped by 15.3%, and the earnings increased by 17.3% on a year-over-year basis. The company’s crop science business division reported higher sales growth, especially in Latin America and Europe.
Based on its strong quarterly performance, Bayer remains positive on its guidance numbers. With its impressive earnings and upcoming drug pipeline, the company checks all the boxes for solid fundamentals and a promising outlook. The good numbers are just a start for a long-term expansion driven by growth in the agriculture segment.
Is Bayer Stock a Buy or Sell?
According to TipRanks, Bayer stock has a Strong Buy rating based on a total of 15 recommendations. It includes 12 Buy and three Hold ratings.
The average BAYN target price is €77.93, which has a huge upside potential of 48% on the current price level of €52.56.
BAYN stock enjoys wide coverage from the analysts rooting for it. Recently, Kepler Capital, Jefferies, Bernstein, Berenberg Bank, and more have reiterated their Buy ratings on the stock.
Deutsche Post
Deutsche Post is a leading supply chain company, delivering packages in Germany and worldwide.
The company’s stock has shown a dull performance and has been trading down by 25% in the last year. However, the stock has returned 20% over the last three years.
The company’s earnings and revenue growth are impressive. In its third quarter of 2022, the company reported a 20% increase in its consolidated revenues of €24.0 billion, driven by all its divisions. Deutsche Post also continuously invests in its business via acquisitions, which helps maintain this growth.
Deutsche Post is also a generous dividend payer and enjoys a yield of 4.73%, compared to the industry average of 1.6%.
Deutsche Post Stock Forecast
TipRanks gives Deutsche Post stock a Strong Buy rating, with 11 buy and one hold recommendation.
The average DPW stock price forecast is €49.83, which shows a change of 31.1% from the current price level.
Ending Thoughts
The three companies discussed above possess good earnings growth along with their market-leading positions. The market rewards such companies with good financial health, which makes them an attractive option for long-term investors.
