The German economy is navigating a challenging and complex environment with signs of renewed strength. After weathering energy shocks, supply issues, and geopolitical tensions, Europe’s largest economy is showing real signs of resilience.
A recovering industrial sector, stronger EU trade cohesion, and strategic investments in clean energy are helping to stabilise Germany’s economic growth. Inflation is gradually easing, and although the European Central Bank remains cautious, German companies are leaning into innovation, digital transformation, and global competitiveness, creating fresh opportunities for investors.
Here are five standout German stocks worth watching in the coming months. From industrial innovation and clean energy to digital transformation and healthcare, these top-listed companies are adapting to global shifts with resilience and ambition.
Rheinmetall
Germany’s dual strength in industrial and defence technology is personified in Rheinmetall. As Europe steps up its military readiness amid geopolitical uncertainty, Rheinmetall is benefitting from heightened NATO-aligned defence budgets and increased demand for high-tech systems. But the company’s reach goes beyond defence, and its growing role in supplying next-generation components for electric vehicles positions it well in both future mobility and national security. For investors seeking a strategic play on Europe’s evolving priorities, Rheinmetall offers relevance, resilience, and room to grow.
Investment involves risk.
SAP
As one of the world’s leading enterprise software providers, SAP continues to evolve. Its rapid transition to the cloud, paired with the integration of cutting-edge AI capabilities, is driving a rise in recurring revenue and deeper global reach. SAP represents the best of German engineering fused with digital agility, empowering businesses around the world to modernise finance, data, and operations. For tech-forward investors, SAP remains a cornerstone holding in a digitised global economy.
Investment involves risk.
Volkswagen
Volkswagen is not just building cars, it’s reshaping the future of mobility. With massive investments in EV development, battery technology, and digital platforms, the company is transforming into a vertically integrated electric mobility powerhouse. Iconic models like the ID. Buzz are capturing consumer attention, while its wider portfolio – Audi, Skoda, and Porsche – underscores brand strength and engineering excellence. Despite short-term margin pressures, Volkswagen’s long-term vision is clear: clean, connected, autonomous transport, powered by German innovation.
Investment involves risk.
Siemens
Siemens sits at the intersection of industrial power and digital progress. As a global leader in automation, smart infrastructure, and digital twin technologies, the company is well-positioned for long-term growth. It’s playing a vital role in global efforts to boost efficiency, sustainability, and intelligent manufacturing. Siemens benefits from a strong international footprint, a diversified portfolio, and a robust balance sheet, making it a smart choice for investors looking for exposure to the future of industry.
Investment involves risk.
Bayer
Bayer is poised for a strategic comeback in 2025. After years of legal and operational hurdles, the company is entering a new phase, focused on its core strengths in pharmaceuticals, life sciences, and sustainable agriculture. With fresh leadership and a renewed focus on operational efficiency, Bayer is working to rebuild investor confidence. The company’s pipeline of innovation, especially in health and crop science, could make it one of the year’s most compelling turnaround stories.
Investment involves risk.
Explore Germany’s investment potential
Germany’s evolving economic landscape could present a diverse range of potential opportunities for investors in 2026. As Europe’s largest economy finds its footing, these companies reflect broader themes shaping the market, making them worth watching in the months ahead. On eToro, you can access these stocks and more, all in one place – complete with live charts, analyst insights, and powerful trading tools
Investment involves risk.