In this article, we will look at 5 best German stocks to buy now. If you want to explore more German stocks, you can also read 10 Best German Stocks to Buy Now.
5. Deutsche Telekom AG (OTC:DTEGY)
Deutsche Telekom AG (OTC:DTEGY) provides integrated telecommunication services. The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group Development. Deutsche Telekom AG (OTC:DTEGY) is one of the largest telecommunications providers in Europe by revenue.
On August 1, Kepler Cheuvreux analyst Andrei Dragolici re-initiated coverage of Deutsche Telekom AG (OTC:DTEGY) with a Buy rating and a EUR 27.20 price target. The analyst noted that the company’s free cash flow yield is expected to grow to over 13% by 2024, from 8% in 2022, and sees Deutsche Telekom AG (OTC:DTEGY) well positioned to gain more market share in the German and U.S. markets.
Deutsche Telekom AG (OTC:DTEGY) is an undervalued dividend-paying German stock that should be on investors’ radars that are exploring the German market. As of August 3, Deutsche Telekom AG (OTC:DTEGY) has a trailing twelve-month PE ratio of 12.68 and is offering a forward dividend yield of 3.62%, which the company supports with free cash flows of EUR 11.95 billion.
4. Deutsche Bank AG (NYSE:DB)
Deutsche Bank AG (NYSE:DB) is a leading German financial services company and also one of the largest banks in the world. As of August 3, Deutsche Bank AG (NYSE:DB) has a trailing twelve-month PE ratio of 7.42 and is offering a forward dividend yield of 2.48%.
Wall Street is bullish on Deutsche Bank AG (NYSE:DB). On July 5, JPMorgan analyst Kian Abouhossein adjusted his price target on the stock to EUR 13 from EUR 15 and reiterated a buy-side Overweight rating on the shares.
On July 27, Deutsche Bank AG (NYSE:DB) released earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.51 and beat expert estimates by $0.11. Moreover, the bank’s revenue for the quarter came in at $6.79 billion, outperforming market consensus by $154.89 million. Deutsche Bank AG (NYSE:DB) also reaffirmed its 2022 revenue guidance of EUR 26.27 billion.
At the end of Q1 2022, 15 hedge funds were long Deutsche Bank AG (NYSE:DB) and held stakes worth $1.42 billion in the company. This is compared to 14 positions in the previous quarter with stakes worth $1.78 billion.
As of March 31, Hudson Executive Capital owns roughly 67.4 million shares of Deutsche Bank AG (NYSE:DB) and is the largest shareholder in the company. The fund’s stakes were valued at $858.18 million in the company and the investment covers 68.62% of its 13F portfolio.
3. SAP SE (NYSE:SAP)
SAP SE (NYSE:SAP) operates as an enterprise application software company worldwide. The company operates through three segments: Applications, Technology & Support, Qualtrics, and Services. As of August 3, SAP SE (NYSE:SAP) has a forward dividend yield of 2.21% which the company supports with trailing twelve-month free cash flows of EUR 4.29 billion.
On July 21, SAP SE (NYSE:SAP) released earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.98 and generated a revenue of $7.67 billion, beating Wall Street expectations by $168.52 million.
Wall Street is bullish on SAP SE (NYSE:SAP). On July 22, Deutsche Bank analyst Johannes Schaller adjusted his price target on SAP SE (NYSE:SAP) to EUR 115 from EUR 120 and reiterated a Buy rating on the shares. On July 26, UBS analyst Michael Briest maintained his Buy rating on SAP SE (NYSE:SAP) and revised his price target on the stock to EUR 107 from EUR 132.
At the close of Q1 2022, 19 hedge funds held stakes in SAP SE (NYSE:SAP). The total value of these stakes amounted to $1.42 billion. This is compared to 14 positions in the previous quarter with stakes worth $1.64 billion.
As of March 31, Fisher Asset Management is the most prominent shareholder in SAP SE (NYSE:SAP) and owns over 8.77 million shares of the company. The investment covers 0.57% of Ken Fisher’s 13F portfolio.
Here is what Polen Capital had to say about SAP SE (NYSE:SAP) in its “Polen Global Growth Fund” first-quarter 2022 investor letter:
“In our opinion, SAP is demonstrating that their cloud transition and RISE with SAP strategy are working. We added to our position upon evidence that CEO Christian Klein’s strategy is bearing fruit, and the stock trading down to an attractive valuation during the quarter. The strategy and sell-off are connected, and we believe it provided an opportunity for long- term shareholders. The company recently reported weak 2022 margin and FCF guidance. This was expected if cloud growth accelerated – which it has. Current cloud backlog has accelerated to a mid-20% growth rate, and the S/4 HANA Cloud Backlog and Cloud Sales have accelerated as well. Cloud, which tends to be a very sticky business with high recurring revenue, is now a >$10bn business and represents roughly 40% of sales.
Our research shows this should only increase over the next five years. If management continues to successfully execute its strategy, the transition should create a mechanical lift to margins and greater levels of FCF. We believe SAP is a durable business led by capable management that is poised to deliver high-quality mid-teens earnings growth over the next five years.”
2. BioNTech SE (NASDAQ:BNTX)
BioNTech SE (NASDAQ:BNTX) is a German biotechnology company that develops and commercializes immunotherapies for cancer and other infectious diseases. As of August 3, the stock has a trailing twelve-month PE ratio of 3.53 and free cash flows of EUR 5.06 billion.
Wall Street is bullish on BioNTech SE (NASDAQ:BNTX). On July 11, H.C. Wainwright analyst Robert Burns revised his price target on BioNTech SE (NASDAQ:BNTX) to $283 from $298 and reiterated a Buy rating on the shares. On July 13, SVB Securities analyst Daina Graybosch upgraded BioNTech SE (NASDAQ:BNTX) to Outperform from Market Perform and reiterated her $223 price target.
At the close of Q1 2022, 29 hedge funds were long BioNTech SE (NASDAQ:BNTX) and held stakes worth $409.02 million in the company. This is compared to 27 positions in Q4 2021 with stakes worth $644.54 million.
In the first quarter of 2022, D E Shaw raised its stakes in BioNTech SE (NASDAQ:BNTX) by 114%, bringing them to $102.96 million. As of March 31, D E Shaw owns roughly 0.60 million shares of BioNTech SE (NASDAQ:BNTX) and is the largest shareholder in the company.
1. Linde plc (NYSE:LIN)
Linde plc (NYSE:LIN) is a leading German industrial gas company and has operations in North and South America, Europe, the Middle East, Africa, and the Asia Pacific. On July 28, Linde plc (NYSE:LIN) released earnings for the fiscal second quarter of 2022. The company registered an EPS of $3.10 and beat Wall Street expectations by $0.14. The company generated a revenue of $8.46 billion, up 11.51% year over year, and beat revenue expectations by $66.23 million.
Shortly after its earnings release, Linde plc (NYSE:LIN) raised its full-year adjusted EPS guidance for fiscal year 2022 and said that it now sees its adjusted EPS in a range between $11.73 and $11.93, up from its prior guidance of between $11.65 and $11.90. On August 2, Deutsche Bank analyst David Begleiter revised his price target on Linde plc (NYSE:LIN) to EUR 350 from EUR 352 and reiterated a Buy rating on the shares.
As of June 30, Impax Asset Management‘s stake in Linde plc (NYSE:LIN) is valued at $935.4 million. The fund owns roughly 2.9 million shares of Linde plc (NYSE:LIN) and is the most prominent shareholder in the company.
At the close of the first quarter of 2022, 54 hedge funds were long Linde plc (NYSE:LIN) with stakes worth $4.81 billion. This is compared to 45 positions in the previous quarter with stakes worth $4.62 billion. The hedge fund sentiment for the stock is positive.
You can also take a look at 15 Most Valuable German Companies and 10 European Defense Stocks to Buy Now.
