Daimler: The Value Stock of the Automotive Sector
The automotive sector has always been an interesting area for both traders and value investors alike.
With the Electronic Vehicle (EV) sector making continuous headlines with newcomers, this week we want to shine some light on a classic automotive stock which has stood the test of time in both industry challenges and consistent growth: Daimler (DAI).
Daimler AG experienced a sudden 11% rise in October 2021, making headlines due to the announcement of their new independent truck and bus business, Daimler Truck Holdings AG. They have also announced to rename the company from Daimler AG to Mercedes-Benz Group AG, effective 1 February 2022.
Aside from this unexpected price spike, analysts are generally positive on the steady and positive growth of Daimler AG, with the majority announcing this stock as a Buy.
Given the mission of Admirals is to give you the tools needed to both trade and invest, as we are positioned as a financial hub, we wish to cover not only stocks to trade, but also steady value stocks which may be interesting to a value-focused investor.
|Symbol for Invest.MT5 Account:||DAI|
|Symbol for Trade.MT5 Account:||#DAI|
|Date of Idea:||10 November 2021|
|Time Line:||6 - 12 months|
|Stop Loss Level:||-|
|Position Size for Invest.MT5 Account:||Max 5%|
The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.
* The Trade.MT5 account allows you to speculate on the price direction of stocks and shares using Contract for Difference (CFDs). This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article.
Source: Admirals Contract Specification
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Why Invest in Daimler Stock?
The general analyst opinion of the Daimler AG stock is that it is highly ranked amongst its peers within the group of Consumer Cyclical companies. DAI has a consensus rating of 2.73, while the average rating amongst this group of Consumer Cyclical companies is 2.53.
The VGM Score (Value, Growth, Momentum) of Daimler is B, only second best to score A, meaning this stock is an excellent choice for those who have a high priority goal of value investing.
The Daimler AG may be undervalued according to analysts, and given the company's financial health and growth prospects, it is possible this stock could outperform the market over time.
With Daimler's plans to invest 40 billion euros between 2022 and 2030 to develop electric battery vehicles (EVs), this is certainly a stock to keep on the Watchlist. Given the possibility that it is currently undervalued, it may be interesting for value investors.
What are Analysts Forecasting for Daimler Shares?
The general consensus of stock analysts rate Daimler (DAI) as a Buy. Based on the historical data of Daimler AG, the stock has on average risen 8% each year based on the total 22 years of performance on the stock market. Based on this information, DAI could be considered a good long-term stock as a part of a value investment portfolio.
Source: WSJ, 10 November 2021
Source: WSJ, 10 November 2021
Source: MarketBeat, 10 November 2021
Based on the analyst price target consensus, the highest price target for Daimler AG over the next 52 weeks is €116. The lowest price target is set at €60, while the average price target is set at €94.43.
How to Buy Daimler Shares in 4 Steps
With Admirals, you can buy shares in German companies like Daimler with a low commission of just $0.02 per share and a low minimum commission of just $1.
- Open an account with Admirals to access the Trader’s Room.
- Click on Trade on one of your live or demo accounts to open the web platform.
- Search for Daimler at the bottom of the Market Watch window and drag the symbol onto the chart.
- Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.
Source: Admirals MetaTrader 5 Web. Past performance is not a reliable indicator of future results, or future performance.
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Do You See Daimler Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Daimler's’s share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.
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