7 Best Warehouse Stocks To Buy According to Analysts

4. Deutsche Post AG (OTC:DHLGY)

Average Upside Potential: 17.46%

Number of Hedge Fund Holders: N/A

Deutsche Post AG (OTC:DHLGY), trading as DHL Group, serves as a leading global logistics company. The company has been organized into five operating divisions namely Supply Chain, Express, eCommerce, Global Forwarding, and Post & Parcel Germany. DHL employs approximately 594,000 people in more than 220 countries and territories across the globe.

DHL Group serves as a market leader in logistics with a diversified portfolio. DHL Supply Chain is the world’s leading contract logistics provider with approximately 1600 warehouse locations, nearly 17 million square metres of storage space, and over 50 countries with active operations, as of December 2023. It is in a unique position to cater for the structural growth of e-commerce and omnichannel fulfillment demand across the small, medium, and large customer segments worldwide.

In the year’s second quarter, Group revenue was up slightly, at EUR 20.6 billion as compared to EUR 20.1 billion in the prior-year period. This was regardless of the weak economic environment. CFO of DHL Group Melanie Kreis attributed DHL’s unique logistics portfolio to preparing it well for when global trade would regain momentum. With the new Strategy 2030, the company has planned to grow its revenue by 50% until 2030 compared to 2023, through divisional and dedicated Group growth initiatives.

In conclusion, Deutsche Post AG (OTC:DHLGY) is a global logistics market leader that offers structural GDP+ growth supported by long-term e-commerce and outsourcing trends. Other than having a clear sustainable growth trajectory in mind, DHL also maintains a strong cash flow since it had a FY 2023 free cash flow of more than €3bn. The average upside potential for Deutsche Post AG (OTC:DHLGY) is 17.46%, as of October 3.