Competitive German automakers: Volkswagen and Mercedes-Benz offering budget-friendly shares with significant growth prospects
Two Stellar German Pickups for Investors: Volkswagen and Mercedes, Unleash Your Portfolio's Peak Performance
Hop aboard the German stock exchange wave, as Volkswagen and Mercedes offer enticing opportunities for savvy investors. These renowned automakers boast high growth potentials.
Riding the Wolvesburg and Stuttgart Rails
Volkswagen and Mercedes both kicked off the year on a high note on the stock exchange. While Volkswagen could surge by around seven percent, Mercedes shares have already posted a nearly nine percent increase. Both shares maintain an appealing valuation:
Volkswagen's Dynamic Drive
In 2023, the Volkswagen share flaunts a price-earnings ratio (P/E) of 4.3. Investors will also relish an attractive dividend yield of 6.61 percent. A whopping 17 analysts at Bloomberg endorse buying the share, while five advocate holding, and only two advise selling. This consensus propels an average target price of 196 euros, translating to a potential bump of 57.1 percent – the top potential amongst all 40 DAX shares. Despite Volkswagen's sustained downward trend, it has yet to recapture its 200-day line. Long-term investors can seize the opportunity to buy before potentially lower purchase prices.
Volkswagen Vz. (WKN: 766403)
Mercedes' Smooth Sailing
The Stuttgart-based luxury automaker has consistently stayed above its 200-day line, and its overall health appears robust post-chart double bottom formation. As with Volkswagen, the Mercedes share boasts a low P/E of 5.8 and an inviting dividend yield of 7.18 percent. While the average potential target price stands at 25.8 percent – slightly lower than Volkswagen's – investors can still capitalize on the Mercedes Benz share.
Curious Fact: Mercedes shares company in the BÖRSE ONLINE Aktien für die Ewigkeit Index with 29 other shares.
Also read Evaluating European Automotive Giants: A Comparative Analysis and Top German Shares with High Dividends and Low P/Es.
Conflict of interest notice: The publisher Börsenmedien AG's CEO and majority shareholder, Mr. Bernd Förtsch, as well as the publication's editor-in-chief, Mr. Frank Pöpsel, have direct and indirect interests in the financial instruments mentioned in the publication, which may benefit from potential stock price growth.
Conflict of interest notice: The index price of the financial instruments is derived from an index that Börsenmedien AG has developed and holds the rights to. Börsenmedien AG also maintains a cooperation agreement with the issuer of the displayed securities, for which it receives remuneration.
In the German stock market, both Volkswagen and Mercedes garner attention as substantial investment opportunities. The Volkswagen share boasts a P/E ratio of 4.3 and an attractive dividend yield of 6.61%, backed by a consensus of 17 analysts advising purchase. This could translate to a potential increase of 57.1%, making it the top DAX share in terms of potential growth. Mercedes, on the other hand, maintains a P/E of 5.8, a high dividend yield of 7.18%, and a robust chart health. Despite a slightly lower potential target price compared to Volkswagen, investing in Mercedes' share remains enticing. Both shares have demonstrated a solid start to the year, with Volkswagen and Mercedes posting nearly seven percent and nine percent increases, respectively.
