The DAX Index has remained in a tight range in the past few weeks as the recent bull run faded. It was trading at €23,766, down a bit from the year-to-date high of €24,635. It has jumped by 30% from its lowest point this year.
This article explores some of the best DAX Index constituents to watch next week, including popular names like SAP, BASF, Linde, Beirsdorf, and Porsche.
SAP
SAP share price has plunged by over 18% from its highest point this year as it continues to underperform other top software companies like Microsoft and Salesforce.
The stock also dropped after becoming a target of an investigation by European regulators, who cited its anticompetitive practices. If found guilty, the company could be fined up to 10% of its global sales.
EU officials allege that SAP may have used improper business strategies to prevent other companies from competing in the industry. SAP has already offered concessions to regulators.
The most recent results showed that the company’s business did well in the last quarter. Its cloud backlog jumped by 22% to €18.1 billion, while its cloud and ERP revenues jumped by 24% and 30%. Its total revenue rose by 9% in the second quarter.
SAP has also continued to repurchase its stock as part of the €5 billion program that ends in December. The management will likely announce a new authorization when it publishes its results on Tuesday.
Read more: SAP brings OpenAI to German public sector via Delos Cloud
BASF
BASF, the biggest chemical company in the world, has plunged by almost 20% from its highest level this week. This decline happened partly because of Donald Trump’s tariffs and the weakness in its key markets like Europe, China, and the US.
The most recent results showed that the company’s revenue dropped to €33.2 billion in the first half of the year from €33.7 billion in the same period last year.
The company’s profitability also weakened during the period as the EBITDA dropped to €4.4 billion from €4.7 billion in the same period last year. Most importantly, the company suffered a cash outflow of €1.3 billion.
BASF also lowered its forward guidance for the year. It now expects that the EBITDA will be between €7.3 and€7.7 billion. Therefore, the upcoming results will provide more color on the company’s performance and whether the turnaround efforts are working.
Porsche
Porsche share price has crashed this year and is now down by 32% from its highest level this year. It has also dropped by over 13% from its highest level in September.
The company has plunged because of its slowing sales in key markets in Europe and Asia. It is also the most exposed company in the United States because of Donald Trump’s tariffs as it has no manufacturing plants there. Also, the US has become its fastest-growing market, meaning that tariffs could slow this momentum.
The company has announced a series of measures to boost its growth, including slowing the pace of electric vehicle rollout. Therefore, its results on Friday will show whether its strategy is working out well.
The other three DAX Index companies to watch will be Linde, Beiersdorf, and MTU Aero Engines. MTU Aero will be notable as the stock is about 50% above the year-to-date low and the civil aviation industry is doing well.
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