In this article, we will discuss: 10 Best German Stocks To Buy Now.
In Germany, the economic growth is based on industry. According to Deutschland.de, Germany’s manufacturing industry contributed 26.6% to the country’s gross value in 2021. In contrast, the percentages were 16.8% in France, 18.4% in the USA, and 29% in Japan. Moreover, in 2020, manufacturing companies generated 2,096 billion euros (approximately $2.2 trillion) in revenue. The largest contributor, at 459 billion euros ($485.3 billion), was the automotive market.
According to the aforementioned research report, the manufacturing market’s export ratio in 2021 was 48.4%. Motor cars and motor vehicle parts were Germany’s most important export products in 2022, totaling 244.4 billion euros ($258.4 billion) and accounting for 15.5% of German exports, as in previous years. In this calculation, it is the value of the finished car counts, even though many parts are imported from other countries.
As per Torsten Schrimpf, Partner and International Business Centre Director at Grant Thornton in Germany, the key growth sectors in the country at present include healthcare and medical devices, plastics, and fintech. He claims that there has been an influx of financial services companies over the past few years as a result of Brexit, with many businesses setting up entities in the country or moving away from London entirely.
Nonetheless, currently, the stock market in Germany is under a lot of strain as economic sentiment weakens. The ZEW index dropped rapidly from 13.1 in October to 7.1 in November, falling far short of the 25-point one-year average. Indicating declining confidence among financial specialists, the index measuring the state of the economy also fell by 4.5 points to -91.4. Achim Wambach, a president of ZEW, commented that Germany’s economic sentiment reflects ongoing concerns about trade and political risks, especially in light of recent events in the US. These drops mark a resurgence of worries about rising tariffs and possible trade obstacles affecting European exports in the wake of Donald Trump’s victory as president of the United States. On November 5, 2024, the German DAX index fell by 0.7% in morning trading, confirming this pessimism. The euro also dropped by 0.4% versus the US dollar to a seven-month low of about 1.06, which was made worse by estimates of a stronger dollar due to Trump’s proposed trade policies.
Following Donald Trump’s presidential victory, analysts at Citigroup and ING have voiced a cautious and pessimistic outlook for Germany’s economy. According to Citigroup analysts, Donald Trump’s victory could have a negative impact on German banks because of possible adjustments to interest rates, tariffs, and U.S. financial deregulation. ING analysts also emphasized that auto tariffs might have a “particularly hard hit” on the German economy, which is highly dependent on trade with the U.S. In light of Trump’s critical views on NATO and the Ukraine crisis, this could increase economic uncertainty and erode trust metrics. ING cautioned that while tariffs would not be implemented right away, heightened concerns about trade conflicts might force Germany and the rest of the eurozone into a recession by the end of the year.
With that said, here are the 10 Best German Stocks To Buy Now.
A graph plotting the trends and performance of stocks on the public equity markets.
Methodology:
To compile our list of the best German stocks to buy, we first made a list of all German firms that are trading on the NASDAQ and NYSE exchanges. Then we selected 10 stocks that had the highest upside potential. The stocks are ranked in ascending order of the upside potential, as of November 15.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here)
10. Evotec SE (NASDAQ:EVO)
Upside potential as of November 15: 8.46%
Evotec SE (NASDAQ:EVO) is a drug discovery partnership company that offers solutions to foundations, academic institutions, pharmaceutical and biotechnology companies, and charity groups. The organization provides services in several therapeutic areas, such as infectious diseases, diabetes, inflammation, oncology, women’s health, and disorders of the central nervous system. The shared R&D division, which accounts for around 80% of sales, offers integrated drug discovery collaborations based on its own, internally generated assets as well as drug discovery and manufacturing services on a standard fee-for-service basis. CDMO services for biologics are provided by the Just-Evotec Biologics segment, which accounts for 20% of sales. The company employs more than 5,000 people and operates 18 production facilities, primarily in the US and Europe, as of 2023.
The Just-Evotec Biologics division had a remarkable revenue increase of 74% in the first nine months of 2024 when compared to the same time the previous year. However, this was offset by a 12% drop in revenue from the shared R&D segment, which remains under pressure in a competitive market environment.
After a recent investment phase that has reduced profits, Evotec SE (NASDAQ:EVO) seems to be in a good position to grow and maintain its company as its strategic expansion plans materialize. US-based Halozyme Therapeutics submitted a nonbinding acquisition offer to Evotec on November 15, 2024, offering EUR 11 per share ($11.64), or around EUR 2 billion ($2.1 billion) in fully diluted equity value. The proposed offer provides a more than 27% premium over Evotec’s most recent closing price before the announcement. Evotec’s stock on the German stock exchange jumped more than 20% after the announcement.
Evotec SE (NASDAQ:EVO) is in a strong position to take advantage of the growing need for biologics from biopharma companies because of its focus on expanding its biologics manufacturing capacity. EVO is one of the best German stocks on our list.
9. SAP SE (NYSE:SAP)
Upside potential as of November 15: 10.52%
SAP SE (NYSE:SAP) was established in 1972 by former IBM employees and offers database technology and enterprise resource planning (ERP) software to businesses globally.
SAP is a market leader in worldwide ERP software and a best-in-breed provider of enterprise resource planning. The company serves 440,000 clients in more than 180 countries, with small and medium-sized businesses accounting for about 80% of its clientele.
In predictive analytics, SAP SE (NYSE:SAP) is a prominent player. An end-to-end analytics and planning solution, SAP Analytics Cloud enables customers to delve deeply into key data sources and crucial business applications. Artificial intelligence can also be used by users to find concealed information and automate reporting.
SAP SE (NYSE:SAP) is successfully bridging the gap between AI and data. Joule, SAP’s co-pilot, can sort and extract valuable insights from existing data to help customers complete planning and analytics more quickly. Users can ask the co-pilot simple inquiries, and it will provide them with intelligent, data-driven responses. The assistant also assists users in creating data visualizations and data models using complex calculations.
SAP SE (NYSE:SAP) maintained its strong business momentum in the third quarter of 2024. The current cloud backlog grew by 29% at constant currency and by 25% YoY to €15.38 billion ($16.2 billion). About one percentage point of that growth rate was attributable to the acquisition of WalkMe. Cloud ERP Suite revenue rose by 34% YoY to €3.64 billion ($3.85 billion) and up 36% at constant currencies, generating a 25% increase YoY in cloud revenue to €4.35 billion ($4.6 billion) and a rise of 27% at constant currencies.
SAP SE (NYSE:SAP) is advancing business AI with ground-breaking products, including SAP Knowledge Graph. AI use cases accounted for a sizable portion of the company’s cloud deals in Q3.
Polen Global Growth Strategy stated the following regarding SAP SE (NYSE:SAP) in its Q3 2024 investor letter:
“In the third quarter, the top relative and absolute contributors to the Portfolio’s performance were MSCI, SAP SE (NYSE:SAP), and AON. SAP reported a good quarter, reflecting solid cloud adoption and disciplined execution around their transformation program, which will help the company focus resources on their most strategic growth opportunities. We view SAP as one of the more resilient software business models as it is an essential part of their customers’ day-to-day operations and cannot easily be turned off or scaled back. Given its attractive market position, vast partner ecosystem, balanced growth across new and existing customers, high recurring revenues, and improving margin profile, we think SAP is well-positioned to continue delivering at least mid-teens earnings growth for many years.
We modestly trimmed our position in SAP, though it remains among our largest holdings. When we reduced the position, shares had appreciated nearly 40% YTD due to strong business performance accompanied by multiple expansions. While our conviction in the business remains high, we felt it was appropriate to taper back what had become a very large position, especially with the valuation at the upper end of its range.”
8. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Upside potential as of November 15: 25.68%
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a global bank that operates on a universal footing. The bank provides its customers with asset management, corporate, retail, investment, and private banking services. DB ranks eighth on our list of the best German stocks.
Deutsche Bank Aktiengesellschaft (NYSE:DB) has managed to stop the negative trend of rapidly dropping revenue. The bank has downscaled its fixed-income trading business, sold off its worldwide equity sales and trading division, and significantly cut staff in the process. The bank now concentrates on its core basics, offering corporate banking, private banking, investment banking, and asset management services to its customers worldwide.
The third quarter of 2024 net revenues of €7.5 billion ($7.94 billion) represented a 5% growth YoY. This resulted from commissions and fee income, which increased 5% annually to €2.5 billion ($2.64 billion), showing the successful operation of fee- and commission-based enterprises. The third quarter of 2024 was also driven by the investment bank’s strong performance. Its net sales increased by 11% to €2.5 billion ($2.64 billion) in the third quarter of 2023, fueled by increases in both Origination & Advisory and Fixed Income and Currencies (FIC). Additionally, the business’s operating business achieved a record-breaking third-quarter profit.
The operational strength of Deutsche Bank Aktiengesellschaft (NYSE:DB) is proven by its nine-month 2024 results. Both revenue growth and expense control were regularly met by the company; the capital and balance sheet are sound, and the overall quality of the loan book is still strong. The management is confident that it will reach its revenue guidance of €30 billion ($31.7 billion) for 2024 and that it will accomplish its 2025 targets due to its steady revenue growth, cost reductions, capital strength, and lowering credit provisions.
7. BioNTech SE (NASDAQ:BNTX)
Upside potential as of November 15: 37.93%
The biotechnology company BioNTech SE (NASDAQ:BNTX), headquartered in Germany, is focused on creating vaccinations against infectious diseases like COVID-19 and cancer treatments, such as personalized immunotherapy. BNTX is one of the best German stocks, returning over 7.5% in the past 12 months.
The company’s oncology pipeline includes several pharmacological types, such as cell treatments, bispecific antibodies, antibody-drug conjugates, or ADCs, and mRNA-based medications that encode antigens, neoantigens, cytokines, and antibodies. Several major pharmaceutical companies, such as Roche, Eli Lilly, Pfizer, Sanofi, and Genmab, are partners of BioNTech. Its first commercially available product is the COVID-19 vaccination, Comirnaty.
In the third quarter of 2024, BioNTech SE (NASDAQ:BNTX) reported revenue of EUR 1.2 billion ($1.27 billion), a 39% increase over the same period the previous year. The increased revenue is attributed to the earlier approvals for BioNTech’s variant-adapted COVID-19 vaccines compared to last year. Moreover, in Q3 2024, research and development expenses were €550.3 million ($582.7 million), compared to €497.9 million ($527.2 million) in the previous year period. R&D expenses were primarily driven by clinical trials for the company’s late-stage cancer pipeline prospects.
During the latest quarter, BioNTech SE (NASDAQ:BNTX) made significant strides in its oncology pipeline and successfully launched our variant-adapted COVID-19 vaccines. Specifically, the company announced major improvements for its mRNA cancer vaccine portfolio and its PD-L1 x VEGF-A bispecific antibody candidate BNT327/PM8002 and started later-stage trials. These achievements support the company’s multi-platform technological approach’s potential and guide the development of innovative proprietary combinations.
6. trivago N.V. (NASDAQ:TRVG)
Analysts’ Upside potential as of November 15: 53.61%
The goal of a hotel search company trivago N.V. (NASDAQ:TRVG) is to change how tourists look for and evaluate lodging while allowing hotel advertisers to expand their businesses by providing them access to a large traveler base via the company’s websites and applications. By customizing their hotel search and giving them access to a wealth of hotel data and rates, the platform allows tourists to make well-informed decisions.
trivago N.V. (NASDAQ:TRVG) has three operating segments: the Americas, Developed Europe, and the Rest of the World. The Developed Europe division accounts for the majority of its revenue.
For its shareholders, the company’s business model has been reliable enough to continuously produce positive cash flow, making it a compelling stock.
To improve user experiences and grow its “trivago Book & Go” function, trivago N.V. (NASDAQ:TRVG) has invested in Holisto, an AI-powered travel technology platform. By maximizing hotel rate aggregate, this calculated action seeks to increase conversion rates and draw in budget-conscious tourists.
trivago NV (NASDAQ:TRVG) announced solid brand revenue growth in developed Europe and the rest of the world segment by 9% YoY, sustaining an upward trend. Additionally, the company has increased the number of AI-powered hotel highlights from 120,000 to 250,000 hotels, improving personalization and user experience.
trivago NV (NASDAQ:TRVG) is confident in reaching double-digit growth in the medium term and is well-positioned for growth in Q4 2024. The company also plans for steady expansion in 2025.
5. Jumia Technologies AG (NYSE:JMIA)
Upside potential as of November 15: 75.54%
Jumia Technologies AG (NYSE:JMIA) is a pan-African e-commerce platform. The company’s platform comprises a marketplace, which links sellers with consumers. Its logistics service makes it possible for merchants to ship and deliver items to customers, and its payment service makes it easier for users in certain marketplaces to deal with one another.
Jumia Technologies AG (NYSE:JMIA) generates revenue through marketing and advertising, value-added services, commissions, fulfillment, and product sales. West Africa, North Africa, East and South Africa, Europe, and the United Arab Emirates are its geographical divisions. The West Africa segment accounts for the majority of the company’s revenue.
Jumia Technologies AG’s (NYSE:JMIA) Q3 2024 results were mixed, showing growth in GMV and active customers but also higher cash usage and EBITDA loss as a result of strategic expenditures. Despite the short-term cost increases caused by warehouse consolidation and higher marketing expenditures, efficiency and growth are anticipated in 2025. Expansion beyond major cities in Nigeria is encouraging, with upcountry orders growing 22% YoY, highlighting the company’s resilience in tough economic conditions.
2025 is a crucial “prove it” year for Jumia Technologies AG (NYSE:JMIA) because of its solid cash position and strategic foundation, even in the face of recent stock declines.
RBC Capital started covering Jumia Technologies AG (NYSE:JMIA) on November 13, 2024, with a $5 price target. In a research note, the analyst informed investors that Jumia is the biggest pan-Africa e-commerce vendor, offering an appealing combination of an underserved end market with a well-known brand, asset-light vertical integration, and a developing moat with possible longer-term possibilities.
4. Immatics N.V. (NASDAQ:IMTX)
Upside potential as of November 15: 114.20%
Immatics N.V. (NASDAQ:IMTX) is a biotechnology company specializing in the research and development of T-cell redirection immunotherapies for cancer patients. Strategic partnerships with outside pharmaceutical and biotechnology firms generate revenue for the company.
Two therapy types are in the company’s pipeline: antibody-like TCR Bispecifics (TCER) and Engineered Adoptive Cell Therapies (ACTengine). Each therapy is intended to treat patients with distinct solid tumor types and at different stages of the disease, and each has its own benefits.
IMA203 is a lead candidate from Immatics N.V. (NASDAQ:IMTX), which targets solid tumors and has shown encouraging clinical results. Its latest clinical trials, for instance, showed a 55% enhanced overall response rate and a median response duration of more than 13 months, indicating long-lasting effects. This suggests the possibility of developing novel therapies for solid malignancies, including melanoma.
In Q3 2024, total revenue (including revenue from partnership agreements) was $56.7 million, up from $6.6 million in the same quarter the year before. The primary cause of the increase is a one-time revenue related to Bristol Myers Squibb YoY’s termination of the IMA401 partnership.
In Q3 2024, the overall amount of cash and cash equivalents, along with other financial assets, is $549.2 million, up from $476.8 million in the same period last year. Ongoing research and development efforts partially offset the rise, which was mostly caused by the January 2024 public offering. Immatics N.V. (NASDAQ:IMTX) currently anticipates a cash runway into the second half of 2027 after its $150 million IPO in October 2024. It is among the best German stocks on our list.
3. InflaRx N.V. (NASDAQ:IFRX)
Upside potential as of November 15: 233.33%
InflaRx N.V. (NASDAQ:IFRX) is a clinical-stage biopharmaceutical company that uses patented anti-C5a/C5aR technology to identify and develop first-in-class, powerful, and selective inhibitors of the complement activation factor C5a and its receptor, C5aR. The development of several autoimmune and other inflammatory diseases is influenced by the inflammatory mediator C5a.
Vilobelimab, its main product candidate, is a brand-new intravenously administered, first-in-class anti-C5a monoclonal antibody that binds to free C5a specifically and has shown tolerability and disease-modifying clinical activity in a variety of clinical settings.
InflaRx N.V. (NASDAQ:IFRX) recently disclosed its third-quarter 2024 financial results, which demonstrated both continued financial stability and noteworthy clinical trial milestones. The accomplishment of patient recruitment milestones in InflaRx’s Phase 3 Vilobelimab study for pyoderma gangrenosum and the ongoing advancement of their therapeutic pipeline, which is expected to begin a Phase 2a trial for INF904 by the end of 2024, are two of the report’s main highlights. For the first nine months of 2024, InflaRx recorded a net loss of €41.0 million ($43.4 million), which was mostly caused by a decline in other revenue from government grants that terminated in mid-2023. Despite this, the company has €62.0 million ($65.6 million) in cash and marketable securities, which should sustain operations into 2026.
Looking ahead, InflaRx N.V. (NASDAQ:IFRX) is still committed to developing its clinical programs and investigating new market prospects, and it has high hopes for reaching significant milestones in 2025. Positive developments for InflaRx, such as CHMP’s recommendation for Gohibic’s approval for severe COVID-19 ARDS, support the company’s potential for expansion. Despite regulatory obstacles, its commercial outlook is further strengthened by the impending European ruling and continued FDA discussions.
2. CureVac N.V. (NASDAQ:CVAC)
Upside potential as of November 15: 293.70%
CureVac N.V. (NASDAQ:CVAC) is a German biopharmaceutical company that uses messenger ribonucleic acid, or mRNA, to produce vaccines and treatments. The company was established in 2000, and in August 2020, it became public.
CureVac N.V. (NASDAQ:CVAC) and GSK worked together to create avian influenza vaccines, COVID-19 vaccines, and second-generation seasonal influenza vaccines. The company’s additional pipeline candidates include oncology mRNA vaccines and molecular treatments for malignancies, liver, and ocular illnesses.
Revenue climbed dramatically to €493.9 million ($523 million) by 2,897% YoY for the third quarter of 2024, mainly due to the GSK partnership, according to key financial data. The company’s cash runway was extended beyond 2028 with a €400 million ($423.5 million) upfront payment from a revised partnership with GSK, which was the main driver of the significant cash rise to €551 million ($583.4 million).
Furthermore, CureVac N.V. (NASDAQ:CVAC) operating profit also increased significantly, showing the impact of the strategy redesign, which included a 30% labor reduction to improve operational efficiency.
In addition to cancer, CureVac N.V. (NASDAQ:CVAC) got positive Phase 2 data for its seasonal influenza program licensed to GSK, which is currently moving forward to Phase 3, and expanded its preclinical vaccine product for urinary tract infections. It is anticipated that Axel Malkomes’s appointment as the company’s new CFO will improve its strategic execution and financial leadership.
1. Affimed N.V. (NASDAQ:AFMD)
Upside potential as of November 15: 359.77%
Affimed N.V. (NASDAQ:AFMD) is a biopharmaceutical company in the clinical stage. The business is involved in the discovery and development of immunotherapies that target cancer. AFMD tops our list of the best German stocks.
The company’s product candidates are being developed in the field of immuno-oncology, which is a cancer treatment technique that aims to combat tumor cells by using the body’s immune system. Based on its fundamental technology, it is actively involved in the discovery, pre-clinical, and clinical development of antibodies. The company is well-known for its in-house ROCK platform, which produces innate cell engagers (ICE) that target solid and hematologic malignancies.
Affimed N.V. (NASDAQ:AFMD) generates revenue by providing research and development services to outside parties using intellectual property that is controlled by both the Group and other parties. Geographically, the United States is where it generates the majority of revenue, although it is also present in Germany.
In Q3 2024, cash, equivalents, and investments totaled €24.1 million ($25.5 million), with a cash runway predicted into the fourth quarter of 2025.
H.C. Wainwright analyst Swayampakula Ramakanth kept his Buy recommendation for Affimed N.V. (NASDAQ:AFMD) at $10.00 on November 15, 2024. The rating of Swayampakula Ramakanth is based on several encouraging improvements at the company. The forthcoming clinical data updates for AFM24, especially as a treatment for non-small cell lung cancer, are an important reason for optimism. It is anticipated that these updates will provide remarkable response rates and progression-free survival metrics. In comparison to existing standards, the continuing investigations have already shown positive results, suggesting the possibility of great performance in subsequent phases.
Furthermore, the encouraging outcomes of the LuminICE-203 research in Hodgkin lymphoma underline the revolutionary possibilities of Affimed N.V. (NASDAQ:AFMD)’s combination treatments, paving the way for important breakthroughs and collaborations.
While we acknowledge the potential of Affimed N.V. (NASDAQ:AFMD), our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AFMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. 10 Best German Stocks To Buy Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
