Germany’s economy is facing continued weakness. According to a report published by Roland Berger, the 0.1% contraction in 2023 and the 0.2% in 2o24 will only be countered by a 0.4% projected growth in 2025. While manufacturing orders are recovering modestly since June last year, business sentiments are still low and the industrial production for November was down 3,1% year-over-year. Unemployment also reached 2.81 million in December 2024, which was a 170,000 increase as compared to the same period last year. This pushed the unemployment rate to 6%. Inflation is now expected to average 2% in 2025, which is still down from the 2.2% figure from 2024.
Earlier on March 6, Chris Verrone, Strategas, joined CNBC’s ‘Fast Money’ to express his bullish outlook on the European market. He highlighted a shift in global cyclicality eastward and observed that the European industrials are achieving new highs. Verrone emphasized that the European banks have shown strength over the past 18 months but despite such trends, investors are still not heavily leaning towards European equities. He cited the German ETF under the name of EWG to support his stance, as EWG broke a 20-year high which indicated its departure from prolonged secular stagnation particularly within banks and industrials. However, he did note that energy and basic resources are not showing the same momentum.
The conversation also covered the fact that investors have been overweight in US large-cap tech stocks over the past 12 to 13 years. Verrone relayed that observed extreme bearishness towards the European market as of December 2024, when he visited the region. He particularly noted that peripheral European markets, which include countries like Italy and Spain, have been leading. Whereas Germany has lagged. While Verrone mentioned that he heard Christine Lagarde, President of the European Central Bank, expressed pessimism about the European economy herself during the world economic forum in Davos, he still maintains his bullish outlook. He thinks that the European economic data is improving and global cyclicality has not been extinguished.
That being acknowledged, we’re here with a list of the 12 best German stocks to buy according to hedge funds.
A closeup of a person’s hand managing a portfolio of stocks on a graphically rich financial app interface.
Our Methodology
We used the Finviz stock screener to compile an initial list of top German stocks. We then selected 12 German stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best German Stocks to Buy According to Hedge Funds
12. Evotec (NASDAQ:EVO)
Number of Hedge Fund Holders: 1
Evotec (NASDAQ:EVO) is a drug discovery and development company that partners with pharmaceutical and biotech firms to advance therapeutic solutions across a range of diseases. Its expertise spans from target identification to clinical development, with collaborations focused on innovative approaches in areas like oncology, immunology, and metabolic diseases.
The company’s partnership with Bristol Myers Squibb (BMS) in neuroscience has yielded substantial progress and triggered a $20 million research payment to Evotec (NASDAQ:EVO). This long-standing collaboration, which was initiated in 2016 and is extended through 2031, develops disease-modifying treatments for neurodegenerative diseases. The partnership has already resulted in the in-licensing of EVT8683 (BMS-986419) by BMS.
Evotec’s (NASDAQ:EVO) LAB eN² drug discovery accelerator, in partnership with Novo Nordisk, has selected its first three projects and aims to translate academic research into novel therapeutics for cardiometabolic conditions. This program has expanded to include 5 new academic institutions. Furthermore, Evotec (NASDAQ:EVO) has secured a $4.5 million grant from the Korean government, alongside Yonsei University and Zymedi, to develop novel antibody-based treatments for lung diseases.
11. Trivago (NASDAQ:TRVG)
Number of Hedge Fund Holders: 3
Trivago (NASDAQ:TRVG) operates an online meta-search platform that enables users to compare hotel and accommodation options from various travel agencies and providers. Its platform, which is accessible through localized websites and apps, facilitates travel searches for a range of accommodation types.
In Q4 2024, the company showed a turning point with a 3% year-over-year revenue increase which was driven by a 5% rise in referral revenue. Referral revenue is the income a company generates from customers who were directed to the business by existing customers or other referring parties. This growth is attributed to brand marketing investments that were launched across 23 key markets. These include the AI-powered campaigns that feature a well-known German football manager called Jürgen Klopp.
The company is prioritizing brand building to capture a larger share of the €1.5 trillion travel market, particularly the high-margin hotel segment. Trivago (NASDAQ:TRVG) aims to increase brand investment to pre-COVID levels by using its strong brand recognition in Europe, the Americas, and Asia. This strategy is seen as a growth driver, especially given the increased price sensitivity of travelers, with potential savings of up to 40% for those using Trivago’s (NASDAQ:TRVG) price comparison.
10. CureVac (NASDAQ:CVAC)
Number of Hedge Fund Holders: 6
CureVac (NASDAQ:CVAC) is a biopharmaceutical company that develops mRNA-based transformative medicines. It has a focus on prophylactic vaccines for infectious diseases and innovative cancer therapies. Its clinical pipeline includes vaccine candidates for COVID-19, rabies, and influenza, as well as mRNA-based cancer treatments.
The company is focused on its mRNA technology platform and its associated intellectual property, which is a key driver of its long-term value and potential revenue. The company is engaged in patent litigation to protect its foundational mRNA innovations. A recent development is the European Patent Office’s (EPO) decision to uphold the company’s European patent EP 3 708 668 B1 which describes its split poly-A tail technology, which enhances mRNA protein expression and medical efficacy.
Earlier in Q3 2024, the company saw a dramatic 2,897% year-over-year revenue increase to €493.9 million. This was driven by its collaboration with GSK which was focused on developing avian and seasonal influenza vaccines, as well as COVID-19 vaccines. A revised partnership with GSK, which included a €400 million upfront payment, extended CureVac’s (NASDAQ:CVAC) cash runway beyond 2028 and increased its total cash to €551 million.
9. InflaRx (NASDAQ:IFRX)
Number of Hedge Fund Holders: 8
InflaRx (NASDAQ:IFRX) is a clinical-stage biopharmaceutical company that develops novel therapies for severe inflammatory and autoimmune diseases. Using its proprietary C5a technology, it’s advancing a pipeline of innovative drug candidates, which include its lead asset called vilobelimab which is currently in late-stage clinical trials across multiple indications.
The company is prioritizing its INF904 program, which is an oral C5a receptor inhibitor, due to its market potential in chronic spontaneous urticaria (CSU) and hidradenitis suppurativa (HS). Each of these represents a $1 billion-plus market. The company initiated a Phase 2a study in December 2024, which involves 75 patients, to assess various dosing regimens over 4 weeks. This aims to gather safety, pharmacokinetic, and clinical efficacy data, with topline results expected in summer 2025. These results will inform the design of a larger Phase 2b study which is planned for initiation by the end of 2025.
Beyond CSU and HS, InflaRx (NASDAQ:IFRX) is exploring INF904’s applications in other immuno-dermatology, immuno-inflammatory, nephrology, neurology, and hematology indications. INF904 demonstrates minimal inhibition of CYP3A4/5 enzymes, which is an advantage over existing C5aR inhibitors, and achieves a ≥90% blockade of C5a-induced neutrophil activation. This positions INF904 as a promising best-in-class candidate.
8. MYT Netherlands Parent (NYSE:MYTE)
Number of Hedge Fund Holders: 9
MYT Netherlands Parent (NYSE:MYTE) operates Mytheresa, which is a global luxury e-commerce platform that offers high-end fashion. It encompasses womenswear, menswear, and lifestyle products available through online and retail channels. Its business model focuses on curating exclusive collections and providing a premium shopping experience to a high-income clientele.
Mytheresa’s core business segment is its luxury multi-brand digital platform. The company reported a 13.4% year-over-year increase in net sales for FQ2 2025 and reached €223.0 million. It saw an 11.9% increase in Gross Merchandise Value (GMV) to €244.7 million. This growth is attributed to Mytheresa’s focus on high-spending and wardrobe-building customers, which resulted in a 13.6% increase in GMV per top customer. The platform’s Average Order Value (AOV) also saw a 9.5% increase to €736.
The company’s strategic initiatives, which include exclusive capsule collection launches with luxury brands, expansion of its fine jewelry offerings, and impactful top customer events, are driving customer engagement and sales. Mytheresa is expanding its presence in the US, with net sales in the region growing by 17.6%. The company anticipates GMV and net sales growth of 7% to 13% for the full fiscal year 2025.
Minot Light Capital is highly optimistic about MYT Netherlands Parent’s (NYSE:MYTE) future due to its strategic acquisition of YNAP and strong financial position. It stated the following regarding the company in its Q4 2024 investor letter:
“MYT Netherlands Parent B.V. (NYSE:MYTE) is currently our partnership’s largest holding and is poised to become a leading curated digital platform for high-end luxury fashion. The company has executed in a consistent and thoughtful manner throughout a meaningful consumer and luxury downturn over the past few years, which has led to a more rational competitive environment. However, the stock has become our largest position due to a game-changing acquisition of YOOX NET-A-PORTER (YNAP) from Richemont (SWX: CFR). For a variety of reasons, Richemont was highly motivated to divest YNAP, and MyTheresa was the only logical and willing acquirer due to the substantial synergies it could bring to the transaction. When the deal was announced, we had a small position in MYTE and it’s market cap was about $340mm (85mm S/O at $4.00/share) with about $15mm of net debt on it’s balance sheet. In exchange for taking on YNAP, Richemont put a cash position of 550mm Euros and no debt on YNAP’s balance sheet, provided a 100mm Euro revolving credit facility to YNAP/MyTheresa, and took a 33% equity stake in the pro-forma combined company.
Hence, in exchange for the issuance of about 42mm shares to Richemont ($172mm of value at the time of deal announcement), MYTE was able to acquire the highly synergistic Net-a-Porter and Mr. Porter luxury marketplaces that had a combined 1.2bln Euros of GMV (vs MYTE’s GMV of about 900mm Euros), the 900mm Euro GMV Yoox and Outnet discount marketplaces, and 550mm Euros of cash. The Net-a-Porter and Mr. Porter brands are currently profitable and should become even more so post-synergies when combined with MyTheresa. The outlet brands (Yoox & Outnet) are currently burning cash, which is the main reason Richemont provided MYTE with 550mm Euros on the transaction. We believe management will determine relatively quickly whether it can turn around the outlet business. If not, we think MyTheresa will shut down that entire business and can likely do so well before burning the 550mm Euro cash position…” (Click here to read the full text)
7. Fresenius Medical Care (NYSE:FMS)
Number of Hedge Fund Holders: 11
Fresenius Medical Care (NYSE:FMS) provides dialysis products and services and offers care for patients with chronic kidney disease. Its services range from operating outpatient dialysis clinics and providing home dialysis support to developing and distributing essential dialysis equipment and pharmaceuticals. It also offers related medical services like vascular care and renal pharmaceuticals.
The Care Delivery segment contributed to the company’s turnaround in 2024 and achieved a 10.7% operating income margin, which surpassed the 10% target. This resulted from positive price and volume effects, productivity gains, labor efficiency enhancements, and a focused international portfolio. US same-market treatment growth turned positive for the full year and reached 0.5% in Q4 2024. The segment mitigated weather-related impacts to just 0.05% in Q3 and Q4.
For 2025, Fresenius Medical Care (NYSE:FMS) projects positive US market treatment growth above 0.5%, which is expected to be driven by the rollout of the 5008X hemodiafiltration machine. This is an advanced medical device used in dialysis to filter waste products from the blood. It offers improved treatment efficiency compared to traditional hemodialysis. Revenue is expected to increase by around €100 million from the value-based care business and reach about €1.9 billion in 2025.
Ariel Global Fund sees the market’s fear regarding GLP-1 drugs impacting dialysis demand as overblown. The fund thinks this presents a buying opportunity for Fresenius Medical Care (NYSE:FMS) and stated the following in its fourth quarter 2023 investor letter:
“We added positions in, leading providers of dialysis services, DaVita, Inc. and Fresenius Medical Care AG (NYSE:FMS). Fresenius Medical Care AG & Co. is the worldwide leader in the treatment of renal disease, while Davita, Inc. administers its services to over 2,700 outpatient dialysis centers across 45+ states and operates over 350 outpatient dialysis centers in 12 total countries. The shares of each company came under pressure following the release of clinical data on the efficacy of glucagon-like-peptide-1 (GLP-1) weight-loss drugs and their potential to negatively impact the demand for dialysis, providing us with attractive entry points in both names. Even assuming high rates of both uptake and effectiveness, we believe the overall impact on dialysis volumes will be small in the near-to-medium term. We also think the cardio protective effects of the GLP-1 class may enable patients to live longer, thereby increasing the overall size of the end-stage renal disease incidence pool. We believed the market misunderstood the actual long-term clinical impact on dialysis and were able to purchase at attractive valuation levels.”
6. Atai Life Sciences (NASDAQ:ATAI)
Number of Hedge Fund Holders: 14
Atai Life Sciences (NASDAQ:ATAI) is a clinical-stage biopharmaceutical company that develops innovative therapeutics for mental health disorders like depression, anxiety, and addiction. Its pipeline features compounds that range from psilocybin and MDMA derivatives to novel neuromodulators and formulations of established substances.
The company is focused on its BPL-003 program which is developed by Beckley Psytech, as a key driver for its growth in the treatment-resistant depression (TRD) market. BPL-003 is an intranasal formulation of mebufotenin benzoate that is designed for rapid and durable antidepressant effects. The Phase 2b clinical trial for its evaluation has completed enrollment of 196 patients across 38 sites in 6 countries, with topline results expected in mid-2025. This trial is assessing the efficacy and safety of single doses of BPL-003 against a sub-perceptual dose, with efficacy measured using the Montgomery-Asberg Depression Rating Scale (MADRS).
The Phase 2a study of BPL-003 demonstrated promising results and showed a 55% remission rate on Day 29 and a 45% remission rate on Day 85, with patients dischargeable in under two hours post-dose. Atai Life Sciences’ (NASDAQ:ATAI) financial position is strengthened by a recent equity offering that extends its operational runway into 2027.
5. Jumia Technologies (NYSE:JMIA)
Number of Hedge Fund Holders: 14
Jumia Technologies (NYSE:JMIA) operates an e-commerce platform across Africa and the Middle East, which connects sellers with consumers through its marketplace, logistics, and payment services. Its platform offers products and digital services such as electronics, fashion, and financial solutions.
The company’s Physical Goods Orders segment demonstrated growth in Q4 2024, with orders increasing by 18% year-over-year. This growth was achieved despite a reduction in marketing spend. Key drivers included successful Black Friday sales events, particularly in electronics and phones, and the expansion of international sourcing, with 31% of gross items sourced from international sellers, primarily China, which represented a 61% year-over-year increase.
For 2025, Jumia Technologies (NYSE:JMIA) projects Physical Goods Orders to grow between 15% and 20% year-over-year, driven by upcountry expansion, product assortment expansion through international sourcing, and improvements in customer and seller experience. Upcountry orders accounted for 56% of Q4 orders, which was up from 49% in Q4 of 2023. The company plans to expand its J-Force agent network, particularly in these regions. J-Force is the company’s network of independent sales consultants who promote and sell its products and services within their local communities.
4. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Number of Hedge Fund Holders: 15
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a financial services provider that offers corporate and investment banking, private banking, and asset management products and services. Its operations span risk management, investment banking transactions, wealth management, and asset solutions. It serves corporations, institutions, and individuals worldwide.
The Corporate Bank remains central to Deutsche Bank Aktiengesellschaft’s (NYSE:DB) franchise. This division outperformed its revenue growth ambitions despite normalizing interest rates and achieved a 13% return on tangible equity (RoTE), which was triple its 2021 level. This success came from a strengthened client franchise and technology investments. Incremental deals won with multinational clients also increased by ~40% since 2022.
Deutsche Bank Aktiengesellschaft (NYSE:DB) now projects a revenue growth of around 5.5%, or €400 million for 2025. This growth will be driven by scaling commissions and fee income, particularly in trade finance and fee-based institutional business, as well as repricing existing client relationships. Resilient net interest income (NII) will provide further support. The bank is focused on enhancing the Corporate Bank’s value proposition through ongoing investments in technology and client engagement.
3. SAP SE (NYSE:SAP)
Number of Hedge Fund Holders: 27
SAP SE (NYSE:SAP) delivers enterprise software solutions that empower businesses to optimize operations and drive digital transformation through its integrated ERP, HR, supply chain, and technology platform offerings. Its solutions are designed to enhance efficiency, facilitate data-driven decisions, and foster sustainable business practices across diverse industries.
The company’s Cloud Revenue segment expanded by 27% year-over-year in Q4 and drove double-digit total revenue growth for the third consecutive quarter. For the full year, cloud revenue grew by 26% in 2024, which was fueled by the strong performance of the Cloud ERP suite. This suite saw a 34% increase and represented 84% of total cloud revenue. Major companies like BP, Total Energies, and BASF use SAP SE’s (NYSE:SAP) cloud offerings for their digital transformations.
The company’s total cloud backlog reached a record high of €63 billion in 2024, which was up 40% year-over-year. SAP SE (NYSE:SAP) is further enhancing its cloud offerings by integrating AI capabilities and simplifying customer adoption through flexible licensing options and strategic migration incentives. The company is also using its position in business data and process knowledge to develop innovative AI-driven solutions that enhance the value proposition of its cloud offerings and position the company for accelerated double-digit total revenue growth through 2027.
Polen Global Growth Strategy is highly positive about the company’s performance and long-term potential. It 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.”
2. Immatics (NASDAQ:IMTX)
Number of Hedge Fund Holders: 33
Immatics (NASDAQ:IMTX) is a clinical-stage biopharmaceutical company that develops T-cell redirecting immunotherapies for cancer with a focus on solid tumors. Its pipeline includes TCR-engineered cell therapies and TCR bispecific that use the body’s immune system to target and destroy cancer cells.
The company’s primary growth driver is its ACTengine® IMA203 TCR-T cell therapy program which targets PRAME. It has a strong focus on its Phase 3 SUPRAME trial in advanced melanoma. The company has initiated this randomized-controlled trial to evaluate IMA203 with the aim of potential market entry by 2027. Positive Phase 1b data shows a 54% confirmed objective response rate and a 12.1-month median duration of response in melanoma patients. The SUPRAME trial is projected to complete patient enrollment in 2026, with a BLA submission planned for Q1 2027.
Immatics (NASDAQ:IMTX) is advancing its second-generation IMA203CD8 TCR-T which demonstrated enhanced potency in Phase 1a trials and expanded application to other solid tumors like ovarian cancer. The company’s TCR Bispecific programs, which include TCER® IMA402 (PRAME) and IMA401 (MAGEA4/8), are progressing through Phase 1 trials and showed promising initial anti-tumor activity. With $628 million in cash reserves as of December 31, 2024, the company is funded to support these clinical advancements, with an updated cash runway extending into H2 2027.
1. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 35
BioNTech SE (NASDAQ:BNTX) is a biotechnology company that develops and commercializes mRNA-based immunotherapies for cancer and infectious diseases. Its pipeline features vaccine and cancer therapeutic candidates that use mRNA technology to stimulate the immune system. It has numerous ongoing clinical trials and strategic collaborations to accelerate its development.
The company is prioritizing its Oncology segment, particularly focusing on two pan-tumor programs: mRNA cancer immunotherapies (FixVac and iNeST) and the bispecific anti-PD-L1/anti-VEGF antibody BNT327. The company believes these programs have the potential to improve patient outcomes across various tumor types and establish new standards of care. In 2024, the company made progress, which included initiating a Phase 3 trial for BNT327 in small-cell lung cancer and advancing multiple datasets for these programs.
The company expects to generate and share new clinical data from these priority programs in 2025. The acquisition of Biotheus is expected to accelerate and expand the global development of BNT327, while also strengthening the company’s clinical development and manufacturing capabilities in China. BioNTech SE (NASDAQ:BNTX) is investing in late-stage clinical trials, particularly in the adjuvant setting for its mRNA immunotherapies. It’s diversifying from its COVID-19 vaccine revenue stream to establish itself as a multi-product commercial oncology company.
While we acknowledge the growth potential of BioNTech SE (NASDAQ:BNTX), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BNTX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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