The DAX Index has bounced back over the past few weeks as investors bought the dip following the easing of trade tensions. It bottomed at €18,500 on April 7 after Donald Trump delivered his Liberation Day tariff speech. It has then bounced back by 22% to the current €22,500, its highest level on April 1.
Top DAX Index shares to watch
The German DAX Index reacted to earnings by companies like Deutsche Börse, Mercedes-Benz Group, Deutsche Bank, Adidas, Volkswagen, and BASF.
This article explores some of the top DAX companies to watch next week. Some of these firms to watch will be MTU Aero, Continental, Zalando, Siemens Healthineers, Vonovia, Rheinmetall, Siemens Energy, Heidelberg Materials, Henkel, and Commerzbank.
Commerzbank
Commerzbank’s share price has jumped this year, and is one of the best-performing companies in the DAX Index. It has soared by over 91% from its lowest level in August last year.
Commerzbank’s business has performed well due to its growing revenue and profitability. It has also done well because of the ongoing accumulation by Unicredit, the giant Italian bank that has become one of its top shareholders.
Unicredit received a nod from German regulators to acquire under 30% of the company last month. This move followed another one by the European Central Bank (ECB).
Investors will be watching closely what Commerzbank’s management will say about Unicredit in its upcoming meeting. In its part, Unicredit has not ruled out making out a full bid for the company.
Rheinmetall
Rheinmetall has consistently been the best-performing DAX Index constituent over the past few years. Its stock has surged to €1,500, up by over 242% from its lowest level since August 5 last year.
The stock’s surge accelerated after Germany announced a new plan to boost its spending by over billions of dollars. Other European countries like France, Italy, and the United Kingdom are boosting their defense spending, with a focus on European companies.
Rheinmettal share price will react to its earnings next week. In addition to its headline numbers, the results will also shed more color on the impact of US tariffs and the rising raw material costs.
Read more: Rheinmetall, BAE Systems and other European defence stocks surge as leaders push for higher military spending
Zalando
Zalando, the giant company in the food delivery industry, will be in the spotlight as it releases its results next week. Its stock has crashed by about 20% from its highest level this year.
Some of the sell-off came this week after Morgan Stanley analysts downgraded the stock from equal-weight to underweight, citing its pricey valuation and the rising competition.
The most recent annual results showed that its gross merchandise value jumped by 4.5% in 2024, while its revenue growth was 4.2%. The management guided towards revenue and GMV growth of between 0% and 5% this year.
BMW
BMW, one of the leading companies in the automotive industry, will be in the spotlight next week as it releases its financial results. These numbers are expected to provide more color about its business now that Trump has implemented huge tariffs.
BMW does a lot of business in the United States. On the positive side, it has a significant manufacturing presence in the US, where it operates its largest plant. This presence may help it to offset some of the tariff impacts.
However, the company will likely talk about costs, and possibly lower its guidance when it publishes its numbers next week.
Other top DAX stocks to watch
Investors will focus on Siemens Energy, a top industrial company in the country, which releases its numbers next week. The most recent data showed that its turnaround efforts are working as it reported its highest margins since its spin-off.
Continental AG will also be in the spotlight because of its role in the automobile industry. Other firms to watch will be Siemens Healthineers and Heidelberg Materials.
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