Hottest Stocks in CW 27/25

The Siemens Energy share gained a further 8.9 percent last week. At currently around 97 euros, it is trading higher than ever before. Analysts at Bank of America rate the company as one of six candidates that are likely to benefit in particular from the German government's multi-billion infrastructure package. The Group generated nine percent of its sales in Germany in 2024, but received 19 percent of its orders. This trend should continue. The report does not include a current price target. However, according to research houses the fair value of the share is on average at just over EUR 80.

The majority of wikifolio traders are much more optimistic. Eugen Fogel, for example, invested in the share last Tuesday. In his wikifolio Growth-strategy, which is currently only 63% invested, Siemens Energy is the fifth largest of a total of ten individual stocks with a portfolio share of 5.5%. He sees increased margins & improved forecasts, data centers & AI infrastructure as demand boosters as well as the structural program and stabilization at the wind turbine division Siemens Gamesa as potential growth drivers for the share price. The trader generally looks for companies with what he sees as a simple and understandable business model that promise long-term growth and stable prospects. A good ten years after the start of the portfolio, the overall performance is 166% or a good 10% on an annual average.

Siemens Energy is even the second-largest holding in Harald Kneis' wikifolio H.B. Kneis Performers. With a portfolio share of over 12 percent, the Siemens spin-off is almost on a par with Rheinmetall as number one. Until this morning, Siemens Energy was even more heavily weighted. However, the trader then sold a fifth of the shares and was able to realize a partial profit of 207 percent. The wikifolio, which was opened a good twelve years ago, consists of HDAX stocks that have performed particularly well over the past 52 weeks. This approach has brought the trader an increase in value of 467% to date. This represents an average annual price gain of a good 15 percent.

Just over three weeks ago, the “stablecoin pioneer” Circle Internet Group went public. After previously targeting a range of 27 to 28 US dollars, the issue price was 31 US dollars. This means that the company was already valued at around 6.8 billion dollars at the start. The issuer of USD Coin, the world's second-largest stablecoin after Tether, achieved a turnover of 1.68 billion dollars last year and earned 156 million dollars on the bottom line. The timing for the IPO could hardly have been better. The US Senate recently passed the so-called “GENIUS Act”. This is a law that aims to create a clear regulatory framework for stablecoins. This is intended to place the market segment under state supervision and strengthen confidence in digital currencies, which are usually linked to stable assets. Circle Internet Group should also benefit from this.

Well-known investor Cathie Wood believes that stablecoins will become one of the US government's most important financial policy instruments in the next five to ten years. This is probably one of the reasons why she announced her intention to invest up to USD 150 million in Circle shares via her fund. The share price literally went through the roof in the first 2 ½ weeks after the IPO. At its peak, the share price rose to almost 300 dollars. The share had thus increased almost tenfold compared to the issue price. Last week, however, there was profit-taking after the record high on Monday, resulting in a weekly loss of a good 26%. The correction trend is continuing at the start of the new week.

"Apparently, concerns about excessive valuations led to a nervous 25% correction this trading week. As far as I know, there was no concrete fundamental news to explain such a correction," explains wikifolio trader Jan Kaiser, who therefore further increased his share portfolio in the wikifolio Paradiso-Trading last week. Kaiser specifically focuses on stocks that have undergone a strong correction and which he expects to rise in price as part of a countermovement. So far, this has brought him a gain of 150% since March 2021. In the case of Circle Internet, however, the decline this morning was probably a little too strong for him. In any case, he trimmed the position to a current holding of just six percent through three partial sales.

The first analysts have also already commented on the future prospects of the stock market newcomer. The average target price is a good 213 dollars above the current price. Barclays (price target: 215 dollars) considers the company to be in an excellent strategic position to benefit from the increasing integration of the crypto and traditional financial systems. Meanwhile, the current assessment by JPMorgan, which puts the fair value of the share at just USD 80, is not yet included in the consensus price target. This means that the share price would have to more than halve from its current level.

The Coinbase share price has risen by 13 percent over the week. Since the beginning of June, the share price has increased by over 40 percent. This makes the stock the top performer in the S&P 500 this month, in which the crypto exchange was included at the end of May. The share is trading at an all-time high. Coinbase is regarded as a key player in the crypto market, with a focus on trading, infrastructure and innovation. As with the Circle Internet Group, Coinbase is benefiting from the passing of the GENIUS Act by the US Senate. In addition, the company also holds a stake in the newcomer to the stock exchange and is thus benefiting from the massive gains in Circle's share price since the IPO.

Experts expect further political tailwinds in the coming months. With the so-called “CLARITY Act”, there is to be a second legislative package that is to establish a clear set of rules for crypto exchanges, brokers and traders and divide responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). In addition, the Federal Housing Finance Agency (FHFA) is said to have instructed the two major US mortgage lenders Fannie Mae and Freddie Mac to prepare for cryptocurrencies as a means of payment for mortgages. The framework conditions are therefore right.

Nevertheless, some traders have used the share's recent rally to take profits. For example, Pascal Schröter, who was able to achieve a 35% increase in the share price via his wikifolio Swimming The Market. After the strong price increase, the trader recognized an “overbought impression at Coinbase, especially because the altcoin sector is still anything but strong”. Schröter can “well imagine” re-entering the market after a rapid correction. For now, however, he is pleased to have made a profit of around four times his initial risk. The trader is on the lookout for short to medium-term trade opportunities on the market and selects the position sizes so that a maximum of around 2% of the wikifolio is at risk per trade. The model portfolio, which is at an all-time high, has achieved a performance of 33% (9.9% p.a.) and a maximum drawdown of 17.5% since mid-2022.

Hims & Hers Health lost a quarter of its market value in the past week. At the low for the week, the loss was even over 35 percent. The ups and downs of the share have thus continued this year. Initially, the share price tripled from 24 dollars to 72 dollars before giving up all its gains. The share then rose again to around 70 euros. Now the next correction. The latest crash was triggered by the announcement by the Danish pharmaceutical company Novo Nordisk that it was ending the distribution partnership with Hims & Hers Health for weight loss drugs, which had only begun in April. This step was justified by allegedly dubious marketing methods of the former partner and the continued sale of Wegovy copycat products. According to Novo Nordisk, this was no longer legally compliant because the drug was no longer in short supply. The Management Board of Hims & Hers Health - of course - takes a completely different view.

Against this backdrop, some wikifolio traders preferred to play it safe and sold the share. "We sold the share at around EUR 50 with a profit and are now keeping a close eye on how the situation develops. In particular, whether legal action or further consequences will follow," writes Yavuz S. Kücük, for example, who had Hims & Hers Health in his wikifolio TITANS. The sale carried out last Monday brought him a profit of 36%. He then built up another position in the share at the end of the week and was able to realize another small gain of 1.4% this morning through a partial sale. The stock is currently still weighted at a good six percent in the portfolio. The trader selects the portfolio stocks (currently 26 shares) based on fundamental data, news and key figures. An increase in value of 182% (16% p.a.) has been generated since August 2018.

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