We recently published a list of 12 Best German Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Deutsche Bank Aktiengesellschaft (NYSE:DB) stands against other best German stocks to buy according to hedge funds.
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.
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).
A business owner tallying their profits in the back office of a local banking branch.
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.
Overall, DB ranks 4th on our list of best German stocks to buy according to hedge funds. While we acknowledge the growth potential of DB, 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 DB 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.
Disclosure: None. This article is originally published at Insider Monkey.
