American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

This DAX index stock is up 95% in 2025: can the RHM rally continue?

by admin March 6, 2025
March 6, 2025
This DAX index stock is up 95% in 2025: can the RHM rally continue?

The DAX index has continued to fire on all cylinders this year as it surged to its all-time high this week. It jumped to a high of €23,100, bringing the last twelve-month gains to 32% and the year-to-date high performance to 16%. This means that the index has beaten its American peers like the Nasdaq 100 and S&P 500.

Rheinmetall’s stock leads the DAX index in 2024

Most DAX index constituent companies are doing well this year, with only six constituents being in the red.  

Rheinmetall, a leading German industrial giant, has become the best-performing company in the index. Its stock is up by 95% this year and by 180% in the last 12 months. It has jumped by over 2,450% in the last decade, making it the top gainer in the DAX index over the years. 

The strong Rheinmetall share price surge has transformed it into a €53 billion juggernaut and the 12th biggest company in Germany. 

For starters, Rheinmetall is one of the biggest companies in the defense industry. It builds products that are used by militaries in Europe, North America, and other countries. 

Rheinmetall operates its business in five key divisions: vehicle systems Europe, Vehicle Systems International, Weapon and ammunition, electronic solutions, and power systems. 

Its top products are ammunition, tactical vehicles, logistic vehicles, propulsion systems, protection systems, and power generators. 

Rheinmetall stock price has surged as investors reacted to the ongoing trends in geopolitics under Donald Trump. Trump has called on European countries to shoulder the burden by increasing their defense spending. 

Read more: These DAX index companies are firing on all cylinders

Most European leaders have also expressed concerns that the United States is unreliable and that they should boost their spending.

Just this week, Germany shocked the market by announcing that it would loosen its fiscal chains and transform the defense spending. Its goal is to spend over €500 billion in the next few years to modernize its defense sector. 

Emmanuel Macron has also called on Europe to raise its national army to bolster its defense against Russia. 

All these factors have played in Rheinmetall’s favor as the company is expected to receive more orders in the coming months.

Read more: Rheinmetall stock jumps as Europe boosts defense spending

Growth momentum is continuing

The most recent financial results showed that Rheinmetall’s business was doing well as demand rose. Sales rose by 40% to €2.45 billion, while the operating margin jumped to 12.3%. A 40% annual growth for a company like RHM is a good thing since these metrics are often common among new tech names. 

The company’s business continues to receive huge orders, which has pushed its order backlog to over €50 billion.

Rheinmettal expects that its annual revenue for 2024 was €10 billion, a big increase from the €7.2 billion it made a year earlier. Its margins are also expected to keep growing, helped by its strong scale. The operating margin will be about 15%, higher than the 12.8% it made a year earlier. 

Rheinmetall share price analysis

RHM stock chart by TradingView

The weekly chart shows that the Rheinmetall stock price has been in a strong surge in the past few years. It has continued to cross major resistance levels in this period. For example, it recently rose above the key resistance level at €1,000. 

The stock has remained above all moving averages, a sign that the momentum is gaining steam. The Average Directional Index (ADX), a popular indicator that measures the strength of a trend, has risen to 44. 

However, the stock has become highly overbought, with the Relative Strength Index (RSI) and the Stochastic RSI moving to the extreme overbought level. Therefore, the stock will likely pull back, and possibly retest the support at €1,000. 

The post This DAX index stock is up 95% in 2025: can the RHM rally continue? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Move on Unicredit: Societe Generale stock is firing on all cylinders
next post
CAC 40 index forecast: here’s why it may surge to €8,500

Related Posts

Clarification Announcement

July 26, 2024

AppLovin stock has surged: brace for mean reversion...

December 10, 2024

Retraction: Singular Research Initiates Coverage On Bitcoin Well

June 17, 2024

Golden Deeps Expands Footprint in the World-Class Lachlan...

July 12, 2024

Results of Entitlement Issue

August 9, 2024

NatWest share price is surging: is it a...

February 13, 2025

Avoid Mullen Automotive and VinFast; buy this EV...

October 29, 2024

Abercrombie & Fitch stock sits at a key...

November 2, 2024

Blackstone stock price could dive 22% before rebounding

December 31, 2024

Heritage Mining Announces Closing of the First Tranche...

June 25, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025
    • Inflation outlook in 2025: what April’s soft data isn’t telling you

      May 18, 2025
    • Rich List 2025: UK billionaires decline for first time in years amid market turmoil

      May 18, 2025
    • Novo Nordisk CEO to step down as obesity drug competition intensifies

      May 18, 2025
    • Argentina’s black market for dollar falters as President Milei dismantles currency controls

      May 18, 2025

    Categories

    • Business (2,969)
    • Investing (2,434)
    • Latest News (1,990)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved