Hottest Stocks in CW 03/25

Armaments group Rheinmetall was one of the big winners on the stock markets last year. With a price increase of 114 %, the value of the share more than doubled in 2024. Only Siemens Energy performed better among the 40 DAX stocks. Rheinmetall's future prospects are assessed as consistently positive in view of the increasing military conflicts and the resulting rise in global arms spending. The company itself is planning to double its sales (to around 20 billion euros) and profit by 2027 compared to the 2024 figures.

Most wikifolio traders are also positive about Rheinmetall. Christian Mallek from SIGAVEST Vermögensverwaltung GmbH has now re-included the share in the wikifolio VV Wachstum Global, which was launched in mid-2023. With a current portfolio share of 5.4 percent, the DAX stock is slightly above average in the portfolio. “We are buying back Rheinmetall,” wrote the investment professional on wednesday, as the previously expected major consolidation in the share price is still not materializing. Donald Trump's recent statements on Greenland, Canada and the Panama Canal have also contributed to the rethink, which Mallek believes indicate further geopolitical conflicts on the horizon. “His statement on the military spending of other NATO members (5 percent of GDP) also left an impression.” The trader also points out that even the Green candidate for chancellor, Robert Habeck, wants to spend 3.5 percent of German GDP on defense. “It is therefore appropriate for us to reposition ourselves here”. After a good 1.5 years, the wikifolio has grown in value by around 28% with a maximum drawdown of just under 18% to date. We are primarily looking for “global growth stocks”.

Over the past few days, stock market participants have followed the numerous news items relating to the CES technology trade fair in Las Vegas with great interest. The speech by Nvidia CEO Jensen Huang, whose shares had just reached new record highs that day, attracted particular attention. The company boss believes there is still plenty of room for his company to grow, as Nvidia is ideally positioned for the envisaged age of AI. Robots, autonomous driving systems, digitalized factories and AI agents are therefore likely to become a “new digital workforce” for companies. Nvidia itself presented a new AI supercomputer called “Project Digits”. For a purchase price of USD 3,000, developers, data scientists and students, for example, will be able to work on software with artificial intelligence.

However, none of this gave the share price any new momentum. Instead, Nvidia lost more than twelve percent of its value from the weekly high on Monday, resulting in a negative result for the week as a whole. wikifolio trader Christian Scheid had already warned of the typical consequences of the “hype phenomenon” that can be observed in the share. Specifically, he is referring to factors such as market saturation, competition, margin pressure “and therefore also share price losses”. In principle, he considers the valuation of the share to be exaggerated and therefore recommends selling, as he emphasized once again at the beginning of the week. Although Nvidia is “undoubtedly an outstanding company”.

Trading-Sentiment:

Many other wikifolio traders, on the other hand, used the price losses as an opportunity to enter the stock. A look at the trading sentiment shows the excess of buyers in Nvidia in recent days. Alexander Abeska, who has been actively trading on the stock market for a good ten years, slightly increased his already quite large position in Nvidia in the wikifolio Aristocrats & Trends last week. With a portfolio share of a good eleven percent, the share is by far the largest single stock in the portfolio, which consists of a good 100 shares and eleven exchange-traded funds (ETFs). The high weighting is due on the one hand to the outstanding performance of the share and on the other hand to the patience of the trader, who can currently report book profits of over 4,100 percent with Nvidia. With a mix of dividend aristocrats and companies active in potential future trends, the value of the model portfolio has more than doubled since mid-2016 (around 9 % p.a. return). The wikifolio is currently trading just below its record high set at the beginning of December.

The share price performance of Walgreens Boots Alliance in recent years resembles a rapid slide. After the pharmaceutical distributor's shares were quoted at almost 100 US dollars in mid-2015 and were still trading at 86 dollars at the end of 2018, the share price subsequently slumped to just over eight dollars. This means that over 90 percent of the stock market value was lost from the high. At the end of last year, the share price at least managed to bottom out at this reduced level. This was facilitated by a planned takeover by Sycamore Partners, although this is not yet a done deal and is being viewed critically by some market participants.

There was also good news from the company itself last week. It presented better-than-expected results for the first quarter of the current 2024/25 financial year, with the retailer increasing its turnover by 7.5 % to 39.46 billion dollars, while adjusted net profit fell to 0.51 dollars per share. Analysts had previously only expected sales of 37.4 billion dollars and EPS of 0.36 dollars. Walgreens Boots Alliance's outlook for the full year to the end of November was also convincing with a confirmed profit forecast of 1.40 to 1.80 dollars (consensus: 1.45 dollars).

Trading-Sentiment:

As a result, the share price jumped by 15 % at the start of trading on the US stock exchanges on Friday and was even able to extend its gains to around 28 % by the end. Some traders are likely to have used this to take profits or limit losses. The current trading sentiment at Walgreens Boots Alliance shows a clear overhang of selling for the past seven days. Analysts are also largely pessimistic.

Palantir shares rose from 17.17 dollars to 75.63 dollars in the past year. An increase in value of 340 percent, which also brought the controversial software developer new record highs. Around two years ago, the share was still trading at less than six dollars. Thanks to good results and forecast increases, Palantir then became one of the hottest stories on the global stock markets as a potential AI profiteer. And this despite the fact that the valuation of the share is repeatedly criticized as being far too high.

Morgan Stanley has just expressed relative skepticism and issued a price target of 60 dollars. The company's recent successes are already sufficiently priced into the share price. In addition, the share price is far above the intrinsic value of the group. Although Palantir could become one of the first winners in the age of artificial intelligence, the current momentum is likely to be difficult to maintain.

Trading-Sentiment:

After the share also lost its momentum in the short term and lost a good 15 % of its value over the week, several wikifolio traders sold the share. Almost three quarters of all transactions in the past seven days were sales. Dr. Elmar Peine has said goodbye to Palantir completely. The trader, who focuses on the effects of major political issues, was able to make gains of over 100 percent for his wikifolio Das Polit-Büro last tuesday. Since its launch almost exactly twelve years ago, the model portfolio has achieved a total price gain of over 900 %, which corresponds to an annualized return of a strong 21 %. Over the year as a whole, it has risen by around 42 %.

Disclaimer: Every investment in securities and other forms of investment is subject to various risks. Explicit reference is made to the risk factors in the prospectus documents of Lang & Schwarz Aktiengesellschaft (Final Terms, Base Prospectus together with supplements and the Simplified Prospectuses, respectively) at wikifolio.com , ls-tc.de and ls-d.ch. You should read the prospectus before making any investment decision in order to fully understand the potential risks and rewards of the decision to invest in the securities. The approval of the prospectus by the competent authority should not be construed as an endorsement of the securities offered or admitted to trading on a regulated market. The performance of the wikifolios as well as the respective wikifolio certificates refers to past performance. Future performance cannot be inferred from this. The content of this site does not constitute investment advice or a solicitation to buy or sell securities. This applies in particular to countries in which such an offer to buy or sell is not permitted. For further information, please refer to our General Terms and Conditions.