Insurance giants Allianz and Munich Re set new records in sales and profitability. Could their strategies be Key to sustained success?
Revised Article:
The rollercoaster ride on the stock market continued into the new year. Some turbulence remains, leaving investors questioning how the rest of the year will pan out. While the start for German stocks was solid, and both Allianz and Munich Re stocks are still thriving, the question lingers on – for how long?
Time to Sell Allianz Stock at 300 Euros?
The Allianz stock is still climbing steadily and currently undervalued. However, it hasn't quite breached the 300 euro mark yet. As the chart below suggests, a rising triangle pattern is forming. Generally, this trend indicates a bullish move and, after testing the 50-day line (blue), Allianz stock should attempt a new upward breakout.
Are things looking dodgy? Not quite. If this upward push doesn't materialize, investors might want to bank some profits for now. In the long run, Allianz remains one of the top picks on BÖRSE ONLINE with a P/E ratio of around 11 and a dividend yield of 5.49%. But the recent market instability could tempt investors to sell, especially from the well-performing stocks like Allianz.
As long as the triangle stays intact, investors won't be hitting the sell button on their Allianz stock. And with a potential break above the resistance line at around 300 euros, investors may even consider buying more. But for now, patience is key with the Allianz stock.
On the other hand, things look a bit wobbly for Munich Re stock.
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Allianz (WKN: 840400) ## Munich Re stock: Proceed with caution near the 20-week line
The Munich Re stock is still riding the wave of upward momentum. However, it's grappling with the 20-week line for quite some time now. In the past, breaking below this line didn't bode well for the stock price. And at the moment, the Munich Re stock stands at this critical line.
Investors should be keeping a close eye on the stock's behavior. If it slips below 460 euros, long-term investors should take some profits. Overall, Munich Re remains an attractive German stock with a P/E ratio of 10.9 and a dividend yield of 3.48%. Recently, the private bank Berenberg recommended holding onto the stock, with a price target of 552 euros[2]. Insurers continue to look attractive, wrote analyst Michael Huttner. Despite a slight deterioration in the pricing environment for natural catastrophe reinsurance, prices remain relatively high, as per Berenberg[2].
So, it's now up to the Munich Re stock to hold the 20-week line. Investors will be observing closely and keeping tabs on the 460 euro mark.
Also read: Three moat stocks with immense potential and a KBV of less than 1.0 should be bought for 2025 or Undervalued European stocks with GIANT potential and P/E ratios far below 1.0
Munich Re (WKN: 843002) Disclosure of Conflicts of InterestThe publisher Börsenmedien AG is led by Mr. Bernd Förtsch, who holds shares, either directly or indirectly, in the financial instruments mentioned in the publication, which could potentially benefit from the stock price movement following the publication: Allianz, Munich Re.
[1] "Munich Re first-quarter 2025 results: Q1 earnings at €1.1bn", Reuters, June 2, 2025, https://www.reuters.com/business/finance/munich-re-posts-operationally-resilient-first-quarter-results-2025-06-02/[2] Berenberg Research, "EFGHL: Munich Re – insurers remain attractive, even in a challenging environment", April 7, 2025, https://www.berenberg.com/en/insights/research/insurance-efghl-munich-re-insurers-remain-attractive-even-in-a-challenging-environment-3728.html[3] "Allianz announces first-quarter 2025 results: Record operating profit, continued high margin drivers and a strong solvency II ratio" (Press Release), Allianz, April 29, 2025, https://www.allianz.com/en/press-media/company-group-and-results/press-releases/allianz-announces-first-quarter-2025-results.html[4] "Allianz hosts Capital Markets Day: Focus on profitable growth, aggregators and digital capabilities" (Press Release), Allianz, June 16, 2025, https://www.allianz.com/en/press-media/company-group-and-results/press-releases/allianz-hosts-capital-markets-day-focus-on-profitable-growth-aggregators-and-digital-capabilities.html[5] "Munich Re notebook: Inflation and natural catastrophes push up losses, but markets remain positive" (Press Release), Munich Re, May 6, 2025, https://www.munichre.com/ir/en/investor-relations/news_room/press_releases/2025/munich-re-notebook-inflation-and-natural-catastrophes-push-up-losses-but-markets-remain-positive.aspx
- The fluctuations in the stock market may lead investors to question the durability of Allianz and Munich Re stocks' growth, as both stocks have been performing well but are currently facing resistance lines.
- Investors might consider being patient with their Allianz stock, as it is currently undervalued and potentially poised for a break above the 300 euros resistance line, while keeping a close eye on Munich Re stock's behavior at the 20-week line, as a potential dip below 460 euros could signal a need for long-term investors to take profits.
