The Dax is at a high level. Less than one percent is missing from the record high. Only a few stocks are valued lower than their ten-year average.
According to analysts' forecasts, five of them will manage to increase their profits in 2026 and 2027 compared to the previous year, while at the same time profit expectations for 2027 have increased since the beginning of this year.
Dusseldorf. The DAX has risen by 90 percent since 2021. Less than one percent is missing from the record high. In the same period, group profits only stagnated: Analysts are forecasting roughly the same net profit for the 40 DAX companies for the current year as in the previous record year of 2021.
Sharply increased prices make most stocks expensive. Only a few stocks are valued lower than their ten-year average. These include car manufacturers. But their profits and earnings forecasts are falling, explaining low valuations and putting pressure on stocks in the sector.
According to analysts' forecasts, only five DAX companies of these undervalued stocks will manage to increase their profits in 2026 and 2027 compared to the previous year, while at the same time profit expectations for 2027 have increased since the beginning of this year. This underlines the positive earnings dynamics.
Handelsblatt portrays these five stocks, also with a view to possible risks. One of these five companies has been reducing the number of its shares for years like no other DAX company, which further increases its price opportunities.
Infineon shares: profit expectations are rising rapidly
The net profit of the largest German semiconductor manufacturer rose by 49 percent to 1.5 billion euros in the past financial year, which ended for Infineon on September 30th. CEO Jochen Hanebeck expects a further significant increase in sales and profits, he announced on Tuesday when presenting the annual balance sheet.
According to the company, the drivers are the billion-dollar investments worldwide in data centers, mostly for artificial intelligence (AI). Sales of chips for powering these data factories will increase to four billion euros in the current financial year. In 2026 it was 2.2 billion euros.
Analysts are forecasting an average of 3.25 billion euros for 2027. Since the beginning of the year, expectations have increased by 34 percent, more than for all other titles profiled here.
Despite steadily increasing and increasing expectations for 2026 and 2027, the share price is lower than the historical average. Investors pay the group and discount the shares at 17.8 times net profit.
The basis for the price-earnings ratio (P/E) calculated in this way is the average net profit forecast by analysts for the next four quarters. This means that the share price is eleven percent lower than the ten-year average.
Potential arises from the new AI data centers needed worldwide. No high-performance processors from Infineon are installed there. But the group relies on materials such as silicon carbide and gallium nitride, which enable the production of semiconductors with higher power density and lower conversion losses, which is important for the development of AI infrastructures. The group has already increased its investments in order to be able to meet the additional demand.
Deutsche Bank shares: Very high valuation discount
Net profit is expected to rise to almost seven billion euros this year. At the beginning of the year, analysts had expected 100 million euros less. Expectations for 2027 have also risen by almost five percent to 7.8 billion euros since January.
The reason for this is strong nine-month figures with an outstanding third quarter. In the months from July to September, Deutsche Bank achieved a net profit of 1.6 billion euros, earning better than analysts had expected.
Growth drivers are asset management with record inflows as well as private and corporate customer business. Net interest income was 3.7 billion euros. Deutsche Bank granted more loans and benefited from sharply rising interest rates in Europe and the USA.
The stock has tripled in the past three years. Nevertheless, with a P/E ratio of 8.6, the share price is significantly lower and 62 percent lower than the ten-year average. This is the largest valuation discount among the titles portrayed here.
However, it should be borne in mind that the European banking sector has been valued very low for many years. There is a reason for this: traditional banks are under increasing competitive pressure, especially in the securities business, from neobrokers and other digital platforms due to lower costs and simple digital user navigation.
After the last general meeting in spring, shareholders received a dividend of one euro per share. This results in a distribution yield of 3.4 percent based on the current price. This is also top among the values portrayed here. Looking ahead to next spring, analysts are forecasting a slight increase in the dividend to 1.10 euros. This would increase the return somewhat.
Scout24 share: Buybacks improve important key figure
Growth at the digital real estate portal operator picked up in the third quarter. Scout24 attributes this to the increasing use of artificial intelligence (AI) in its products related to the “Immoscout24” portal. With the help of AI, customers should be able to improve their chances of being accepted for an apartment or being invited to view the apartment. AI is intended to relieve brokers and other real estate professionals of annoying routine work.
From July to September, sales rose by almost 20 percent to 198 million euros, and earnings before taxes, interest, depreciation and amortization (Ebitda) improved by 16 percent to 121 million euros.
For the year as a whole, the DAX group expects sales growth of 18 percent. This is the upper edge of the previous range of 16 to 18 percent.
Analysts on average forecast a net profit of 268 million euros this year and 310 million euros next year. Despite the strong profit development, the share price with a P/E ratio of 18.4 is 35 percent lower than the ten-year average. However, it should be noted that the stock was highly valued at a time when net profits were very low.
Remarkable: 21 of a total of 23 analysts who regularly analyze Scout24 recommend buying the share, no one recommends selling it. This is an unusually strong vote even among the usually optimistic analysts.
A selling point is a special record: over the past ten years, the group has reduced its own stock holdings by 30 percent through buybacks. That is more than any other DAX company.
In this way, Scout24 increased its net profit per share (EPS), which is the more important figure for shareholders compared to consolidated profit, by 272 percent to 3.83 euros over the last ten years. During the same period, absolute profits “only” rose by 139 percent.
It cannot be proven whether and to what extent buybacks influence the respective share price. But the price, excluding annual distributions, has risen by 177 percent in the past ten years. The comparable DAX price, i.e. even without dividends, only achieved 86 percent in the same period.
MTU shares: High demand drives profits
After significant growth in the first nine months, the engine manufacturer is more optimistic about the year as a whole. The reason for this is the high demand from airlines for new aircraft and maintenance services. Given the sharp rise in kerosene prices, engines with low fuel consumption are in demand.
The DAX group now expects annual sales in the upper half of the previously forecast range of 9.2 to 9.7 billion euros. In the first nine months, sales rose by 13 percent to 7.1 billion euros, and earnings before taxes and interest (EBIT) rose by five percent to one billion euros.
The growth is primarily driven by civil maintenance and the spare parts business. Analysts forecast a net profit of 967 million euros for the full year and almost 1.1 billion euros next year.
With a P/E ratio of 16.3 based on the profits forecast for the next twelve months, the share price is a good 20 percent lower than the ten-year average.
Because aircraft always need to be maintained and the number of aircraft is constantly increasing, MTU's earnings are also increasing steadily. Exceptions are rare, such as the recent corona pandemic five years ago, in which there were few flights due to political restrictions.
Commerzbank share: Dividend forecasts subject to change
In the past quarter, net profit rose by 45 percent to 859 million euros compared to the same period last year. In the first nine months it was 40 percent more at 2.7 billion euros. This is the best result in the company's history.
For the year as a whole, analysts are forecasting an average net profit of 3.5 billion euros and for 2027 even a good four billion euros.
Despite record-high profits, the share price is around 80 percent below the record prices from shortly before the turn of the millennium. The reason for this is the financial crisis and the rescue of the bank by the state: The following capital increases at prices of just over two euros in some cases significantly diluted the capital, which means that the price is permanently depressed compared to the times before the capital measures.
With a P/E ratio of 10.3, the share price is 35 percent lower than the ten-year average. After a dividend of 1.10 euros per share following the last annual general meeting in the spring, analysts are expecting an average of 1.25 euros next spring. This results in a distribution yield of just over three percent.
However, all dividend forecasts and the returns calculated from them are subject to change. Unicredit wants to take over Commerzbank and, according to its own information, currently has almost 50 percent of the voting rights and can therefore determine most of the general meeting resolutions. Implementation is still subject to approval by the EU Commission authorities and is expected by the end of the year.
