Germany's election at the weekend could be setting the stage for a new direction for the country's economy as well. While European stock markets have done very well this year - the DAX has set 18 all time highs and put on 14% since the start of the year - many investors will want to see a road map for the German economy from the new government.
Following the victor of Friedrich Merz at the polls in Germany on Sunday, analysts reckon that the new government will be a coalition between the CDU/CSU under Merz and the SPD under Olaf Scholz. For stock pickers, while uncertainty hangs over the future direction of the Germany economy, there will still be some excellent single stock opportunities to benefit from on German stock exchanges.
In this article we look at five of the best stocks listed in Germany that look poised for growth in 2025.
Zalando SE [ZAL]
Shares in Zalando have done very well over the last six months, up 52%. They have returned almost 90% in the 12 month picture. A short-term retracement in the stock is setting up an opportunity for further gains, and despite a PE ratio of 48X, a price target of EUR 44-45 looks achievable. Zalando operates a platform for fashion and lifestyle products in Germany, including shoes, beauty products and accessories. It also runs bricks and mortar stores. The company has considerable pan-European reach in the retail space, with a presence in most European countries.
TeamViewer SE [TMV]
Shares in TeamViewer have been rallying recently, up 32% YTD. The stock is up over 7% since its last filing. TeamViewer sits in an area of growth for the tech sector, specialising in remote connectivity solutions. It has a global market it can sell into. The last set of results, which came in earlier this month, have been a further boost to the stock price with revenue up 8.5% and +22.1% in earnings per share. The income line has increased for 24 consecutive quarters. We think the company looks in excellent shape when compared with peers like SAP SE or Mensch und Maschine Software. The PE ratio is still only 16X which for a tech stock of this scale makes TeamViewer look like a bargain.
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