Market News #35 - 21-25 Feb | Which German Stocks to Watch This Week?

There could be some bumps in the market this week, with geopolitical tensions between Russia and Ukraine, and a few other bearish trends out there. But that’s okay: ups and downs are part of investing. As for the calendar this week, earnings season is winding down but let’s take a look at three German stocks that could be more volatile than usual.

A quick check-up for Fresenius :white_check_mark:

Healthcare company Fresenius and one of its subsidiaries Fresenius Medical Care will both report their quarterly figures on Tuesday February 22nd.

Let’s start with the good news. Fresenius has just received a positive rating from analysts at Goldman Sachs. The company’s shares have been through a rough patch lately, hitting a ten-year low in 2020, with the stock price plummeting to €24. However, two years later the group has shown a strong recovery and is now trading at around €38. Fresenius has been one of the best performers on the German DAX index recently, which bodes well for its quarterly earnings.

On the flip side, investors are less optimistic about Fresenius Medical Care. Analysts at JP Morgan and Jefferies both downgraded the stock recently. However, it’s not all bad news. The company has enjoyed a decent 12% rise in its share price so far this year and increased its dividend payout by 2%. And it still holds a solid market capitalisation of $20 billion. The analysts did also note that the company’s long-term prospects are good, based on the ever-increasing need for dialysis treatments.

Deutsche Telekom on the front line :telephone_receiver:

The second company to watch this week is Deutsche Telekom, one of the pioneers of German national telecommunications. Deutsche Telekom is in talks to merge its communication towers with two other major European telecom players: Vodafone and Orange. This news has made banks rather optimistic about Deutsche Telekom. Barclays, for example, has recommended it.

And this Thursday February 24th, the group will present its quarterly results. Analysts expect earnings per share of €0.25, compared to €0.35 in the same quarter last year. Revenue could be as high as €29.08 billion, an increase of 5.26% year-over-year.

Mercedes-Benz Group on the road to success :oncoming_automobile:

The Mercedes-Benz Group (formerly Daimler) will also report on Thursday February 24th. The German company said that its earnings may come in higher than expected. Mercedes-Benz has increased prices recently which has helped the carmaker recover from a difficult period linked to supply chain issues and the global chip shortage. Sales growth could be around 12.7%, and earnings before interest and taxes could be as high as €14 billion for 2021.

On the other hand, Mercedes-Benz lost the top spot in vehicle sales to BMW for the first time in five years. But the outlook remains positive for 2022. CEO Ola Kellenius said the group’s focus will now be on boosting overall profitability.

Which ETF to watch? :eyes:

If you want to follow trends in Germany, keep your eye on the Germany DAX 40 Index ETF, which tracks the growth of the German stock market and replicates the DAX index. By investing in this ETF, you can gain exposure to the 40 German companies that make up this leading European investment index.

Don’t forget: with BUX Zero you can create an automated investment plan to invest in ETFs every month. You can set it up in the app.

Economic and results calendar :calendar:

Monday – Manufacturing and services PMI in France, Germany and the Eurozone (estimate, February). Quarterly figures from Macy’s, Faurecia.

Tuesday – Ifo business climate index in Germany (February). US manufacturing and services PMI (February). Quarterly figures from Home Depot, HSBC, Fresenius, Fresenius Medical Care.

Wednesday – Business climate in France (February). Inflation rate in Austria and the euro area (January). Consumer confidence in Ireland (February). Quarterly figures from Booking, Danone, eBay, Eiffage.

Thursday – US GDP data (fourth quarter). US weekly unemployment figures. Quarterly figures from Deutsche Telekom, Mercedes-Benz Group, Moderna.

Friday – GDP data in Germany and France (Q4). French inflation rate (February). Economic, industrial and services sentiment in the euro area. French unemployment rate (January). Groupe SEB quarterly figures.

For a full list of company earnings, check our financial calendar directly in the app.

Interesting to read :books:

BUX Broadcast #43 | Vliegen met Virgin Galactic en meer spannende cijfers :netherlands:

BUX Börsenausblick #34 | Virgin Galactic & die Freseniusse :de:

Which quarterly figures are you most excited about? :thinking:

  • Fresenius
  • Deutsche Telekom
  • Mercedes-Benz
  • Home Depot
  • Booking
  • Danone
  • eBay
  • Moderna
  • Others

0 voters

We’ll be back next week for another edition of Market News. In the meantime, have a great week on the markets! :wave:t4:

All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

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