- Summary:
- n this report, we look at the best DAX index stocks this year and the reasons why they jumped. We explain what to expect this year
The DAX index has staged a major recovery in the past few months. The index rose by more than 90% from its lowest level in 2020 to June this year. It rose to an all-time high of €15,800. However, the rising Covid cases globally and the flooding in Germany have pushed the index to the lowest level since May. Let us look at the best performers in the DAX index this year.
Deutsche Post
The Deutsche Post stock has jumped by more than 62% in the past 12 months. Year-to-date, it has risen by more than 42%, becoming the best performer in the DAX index. The reason behind this is obvious. As the pandemic spread, more people rushed to shop online.
As a result, the company saw robust parcel demand from around the world. Indeed, the company recently boosted its profit forecast for the year to more than 7 billion euros from the previous 6.7 billion euros. Further, it expects its operating profit to reach 7.4 billion euros in 2023. As a result, the firm said that it would pay a 300 euro bonus to all 550,000 staff.
Volkswagen
The Volkswagen share price has jumped by 34% this year and by 40% in the past 12 months. This makes it the second-best performing DAX index stock and the best performing automotive company. Notably, this performance has come at a time when automakers are facing a major supply shortage of chips.
At the same time, demand for vehicles is rising. As a result, the firm said that it expects its operating profit will rise to 11 billion euros this year. This performance will be because of the strong demand from the US and Europe. Looking forward, investors will be looking at the overall performance of the automobile market in China and the US. They will also focus on the firm’s electric vehicle strategy.
Daimler
The Daimler share price has risen by 77% in the past 12 months and by 20.44% this year. This makes it the third-best DAX index performer this year. Like Volkswagen, the Mercedes parent company has benefited from the rising demand for cars and higher prices caused by the chip shortages. This performance helped the company have an EBITDA of more than $6.1 billion in the second quarter. That was better than the overall analysts estimates. However, in a report today, the company slashed its growth estimate because of the chip shortage. The management said:
“The entire industry is currently struggling with longer delivery times, which unfortunately also affect our customers. We are doing what we can to minimize the impact.”
Daimler shares are down by 12% in the past 12 months.
The other top performers in the German DAX this year are Merck, Deutsche Wonen, and Heidelberg Cement. Deutsche Wonen stock gained after Vonovia made a $22 billion bid for the firm. On the other hand, the worst performers in the DAX are Siemens, RWE, Muech Rueckvers, Henkel, and MTU Aero.
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