Inexpensive German stocks on the rise.
Volkswagen and K + S: Lower Market Valuations, Big Profits
Jump on the bandwagon! Volkswagen and K + S are raking in the profits, but their market capitalizations are surprisingly low. Here's why you shouldn't sleep on these giants.
🚙 Volkswagen:"Cash Cow" with a Surprising Low Market Cap
Got ten billion euros in earnings in mere six months? Volkswagen has! The automotive behemoth is minting money, with analysts projecting a whopping 17-billion-euro profit for the year! Yet, the company's market capitalization stands at a meager 90 billion euros. This leaves the price-to-earnings ratio (P/E) at just over five. If an investor had the cash to buy the entire company, the profits alone could finance the deal within six years, assuming Volkswagen maintains its momentum.
🌿 K + S: A Fertilizer Manufacturer with a Smaller Market Cap than Expected Profits
K + S, a fertilizer manufacturer, is another intriguing player. Its market capitalization is less than four times its projected profits for the next twelve months.
The Market Crash and Its Aftermath
This year's market crash has brought down valuation ratios, making numerous stocks cheaper than they've been in a while. The P/E ratio of the American S&P 500 index has plummeted from nearly 22 at the start of the year to just over 15, according to Bloomberg. Goldman Sachs strategists call this a "collapse" in stock valuations. Germany mirrors this situation with the P/E ratio of the DAX dropping from 17 to less than ten, and currently sitting at eleven. Among the 100 stocks of the HDAX, 28 now have a single-digit P/E ratio.
Expert Recommendations for Undervalued DAX Stocks
While specific top ten undervalued DAX stocks currently recommended by experts aren't available, the general consensus supports considering quality stocks and dividend strategies in Europe, particularly in Germany. Burning question: Which stocks are experts betting on? Dive into the new issue of €uro am Sonntag to find out!
ژFurther Topics in this Issue:
- Magenta on the Move: T-Mobile US is making waves in the U.S. market, benefiting its parent company in Germany (p.20)
- Opportunity for the Brave: Political tensions and a weak economy are putting pressure on stock prices. But experts see great potential in Chinese stocks right now (p.22)
- Only Bargain Hunters at the Exchange: After Kion, the second specialist in warehouse logistics presented its half-year results, the stocks are consolidating, but the industry offers long-term opportunities (p.24)
- Significant Update: In the medium term, Ether has the potential to challenge Bitcoin's position as number one. Thanks to the new update (p.30)
- Weighty Problems: Unusual correlations between stocks and bonds are tricky for mixed portfolios. How good managers react (p.32)
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Got 36 bucks? Get a 12-digital issue subscription to €uro am Sonntag instead of 53.88 euros. Stay ahead of the game with timely news on politics, economy, and the stock market every weekend!Don't miss out on these undervalued gems; read up on ten undervalued DAX stocks and get expert recommendations in the latest issue of €uro am Sonntag! Happy investing, folks! 💸🚀😉
- Volkswagen, despite generating nearly 17 billion euros in earnings this year and having a projected profit of over 17 billion euros, has a market capitalization of only 90 billion euros, making its price-to-earnings ratio (P/E) just over five.
- K + S, the fertilizer manufacturer, is projected to make less than four times its current market capitalization in profits for the next twelve months.
- With the market crash this year, numerous stocks have become significantly undervalued, such as Volkswagen and K + S, with their low market capitalizations compared to their earnings.
- In light of the undervalued DAX stocks such as Volkswagen and K + S, experts recommend considering quality stocks and dividend strategies in Europe, particularly in Germany, for investment purposes.
