Top German Growth Stocks With Insider Ownership In October 2024

As the German market experiences a notable surge, with the DAX index climbing over 4% amid hopes for interest rate cuts and economic stimulus measures from China, investors are increasingly focused on identifying growth opportunities within this buoyant landscape. In such an environment, stocks that combine strong growth potential with high insider ownership can be particularly appealing as they may indicate confidence from those closest to the company's operations and strategic direction.

Top 10 Growth Companies With High Insider Ownership In Germany

Name	Insider Ownership	Earnings Growth
Stemmer Imaging (XTRA:S9I)	24.8%	23.2%
Exasol (XTRA:EXL)	25.3%	117.1%
Deutsche Beteiligungs (XTRA:DBAN)	39.5%	54.1%
adidas (XTRA:ADS)	16.6%	41.8%
pferdewetten.de (XTRA:EMH)	26.8%	97.9%
Alelion Energy Systems (DB:2FZ)	37.4%	106.6%
Beyond Frames Entertainment (DB:8WP)	10.8%	112.2%
Redcare Pharmacy (XTRA:RDC)	17.4%	51.6%
Friedrich Vorwerk Group (XTRA:VH2)	18.8%	24.6%
elumeo (XTRA:ELB)	25.8%	120.2%

Click here to see the full list of 20 stocks from our Fast Growing German Companies With High Insider Ownership screener.

Let's take a closer look at a couple of our picks from the screened companies.

adidas (XTRA:ADS)

Simply Wall St Growth Rating: ★★★★★☆

Overview: adidas AG, along with its subsidiaries, is engaged in the design, development, production, and marketing of athletic and sports lifestyle products across Europe, the Middle East, Africa, North America, Greater China, the Asia-Pacific region, and Latin America with a market capitalization of approximately €42.35 billion.

Operations: The company's revenue segments include €3.26 billion from Greater China, €2.39 billion from Latin America, and €5.07 billion from North America.

Insider Ownership: 16.6%

Earnings Growth Forecast: 41.8% p.a.

Adidas AG's recent performance highlights its potential as a growth company, with earnings expected to grow significantly above the German market average. The company became profitable this year and reported strong Q2 results, with net income rising to €190 million from €84 million year-on-year. Despite currency challenges, adidas raised its 2024 guidance, anticipating high-single-digit revenue growth and an operating profit of approximately €1 billion. Insider trading activity over the past three months remains undisclosed.

• Click to explore a detailed breakdown of our findings in adidas' earnings growth report.
• Our valuation report unveils the possibility adidas' shares may be trading at a premium.

Redcare Pharmacy (XTRA:RDC)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Redcare Pharmacy NV operates an online pharmacy business across the Netherlands, Germany, Italy, Belgium, Switzerland, Austria, and France with a market cap of €2.74 billion.

Operations: The company generates its revenue from two main segments: DACH, contributing €1.74 billion, and International, accounting for €391 million.

Insider Ownership: 17.4%

Earnings Growth Forecast: 51.6% p.a.

Redcare Pharmacy is poised for significant growth, with earnings projected to increase by 51.63% annually and profitability expected within three years. Recent half-year results showed sales of €1.12 billion, up from €791.94 million, though the company reported a net loss of €12.07 million. Despite high share price volatility and past shareholder dilution, insider activity indicates more buying than selling recently, suggesting confidence in future prospects amidst slower-than-20% revenue growth forecasts.

• Unlock comprehensive insights into our analysis of Redcare Pharmacy stock in this growth report.
• Upon reviewing our latest valuation report, Redcare Pharmacy's share price might be too optimistic.

Zalando (XTRA:ZAL)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Zalando SE operates an online platform for fashion and lifestyle products, with a market capitalization of approximately €7.41 billion.

Operations: The company generates revenue through its online platform for fashion and lifestyle products, with segment adjustments amounting to €10.49 billion.

Insider Ownership: 10.4%

Earnings Growth Forecast: 24.9% p.a.

Zalando is positioned for growth, with earnings projected to rise by 24.85% annually, outpacing the broader German market's 20.2%. Recent financials show a significant increase in net income to €95.7 million for Q2 2024 from €56.6 million the previous year, despite its revenue growth being slower than 20% per annum. The company's shares trade at a notable discount to estimated fair value, and recent executive changes could impact strategic direction as CFO Dr. Sandra Dembeck plans her departure in February 2025.

• Navigate through the intricacies of Zalando with our comprehensive analyst estimates report here.
• The analysis detailed in our Zalando valuation report hints at an inflated share price compared to its estimated value.

Taking Advantage

• Explore the 20 names from our Fast Growing German Companies With High Insider Ownership screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready To Venture Into Other Investment Styles?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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