The DAX Index wavered as investors reacted to the European Central Bank (ECB) interest rate decision and earnings by top companies like Deutsche Bank, BASF, Mercedes-Benz, Linde, and Adidas. This article looks at some of the top German companies to watch next week.
DAX Index to react to Bayer earnings
Bayer stock has done well in the past few months, soaring by over 50% from its lowest level this year. This rally continued rising after the company won another round of Roundup weedkiller cancer trial. A jury sided with the company in the first trial after the Supreme Court ruled in its favor a few months ago. The company is still waiting for a broader ruling from a separate court on the $7.25 billion effort to settle other Roundup cases.
The most recent results showed that Bayer’s sales rose by 3% in the third quarter to €24.3 billion, with its core EPS rising by 3% to €3.6. Most of its revenue growth was driven by its crop science business, whose revenue rose by 5.5%. Its pharmaceuticals and consumer health revenue rose by 3.5% and 0.2%, respectively. The upcoming earnings report will provide more hints on what to expect.
BMW earnings to shed color on its turnaround
BMW stock has plunged in the past few months as concerns about the European auto industry continued. It was trading at €57.92 on Friday, down by 50% from its all-time high of €115, which it achieved in 2024.
The retreat has coincided with that of other European companies like Volkswagen and Mercedes-Benz. In its earnings this week, Volkswagen posted its biggest loss since the Dieselgate scandal. The management warned that the mounting losses threatened its ability to compete.
It warned that its margins were too low to continue investing in technologies that are essential to its future. Deliveries to China tumbled by 30% in the last quarter.
Therefore, BMW stock will react to the upcoming results, which will provide more hints on its business, especially in China. The results will also provide hints on whether its turnaround is continuing.
Rheinmetall
Rheinmetall, the biggest defense group in Europe, has been in a strong sell-off in the past few months. It has dropped from €2,005 in September to the current €1,037, making one of last year’s best performers in the DAX index into one of the worst.
The stock’s retreat continued after Germany cancelled its frigate program that was supposed to earn it billions of dollars. It is also facing supply chain issues because of the ongoing US-Iran war. The war has also led to a surge in raw material costs.
Rheinmetall’s stock retreat has also coincided with that of its American peers like Lockheed Martin and RTX. Its upcoming earnings report will provide more color on its business.
There are other top DAX Index companies to watch next week. The most notable ones will be Deutsche Telekom, Deutsche Post, Commerzbank, and Siemens Healthineers. Vonovia, a company whose business is under pressure from a new Berlin law, will also release its earnings..
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