2025 Outlook for BASF and Siemens Stocks: Tough Road Ahead?
BASF Stock: A Bumpy Ride
BASF and Siemens Shares Show Little Gain Beyond Dividends
The BASF stock, currently struggling, might just fail to gain traction. Previously, we predicted a potential double bottom formation around 43 euros in December, but the recovery was short-lived. Now, the stock edges dangerously close to breaking its last local low – a distressing development indeed.
In spite of this, BASF offers attractive valuation with a P/E ratio of 12.1 and a dividend yield of 5.97%. However, the lackluster business conditions persist, leaving noted uncertainty in the chemical sector.
Two silver linings for the BASF stock: First, resolution of the Ukraine conflict and improved economic conditions could pave the way for a fundamental recovery. Second, the stock might return to forming a double bottom at the 42 euros mark. But investors should exercise caution despite the high dividend yields.
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Siemens Stock: Riding the Uptrend or Heading for Turbulence?
For now, Siemens stock looks steady, climbing steadily with a good uptrend. However, the P/E ratio of 17.4, while not overly unfavorable, is worth noting. The yield, at 2.64%, is still enticing. Yet, earnings per share are predicted to remain almost stable in 2025 and 2026, hereby sparking concerns about growth.
Much talk surrounds streamlining the Siemens corporate structure, with efforts to shake things up noticeable at Siemens Healthineers. If the growth remains slow and management faces more hurdles than anticipated, 2025 could prove to be more challenging for the Siemens stock than expected. But, as long as the 200-day line (green) holds, investors can continue riding the uptrend and enjoy the dividend yield. Avoid new entries for the time being, and sell the Siemens stock only if the 200-day line is breached.
Also read: Allianz and Munich Re: New Highs – Time to Sell and Secure Profits? or: 12 Exotic Momentum Stocks – Analysts' New Hot Picks
Note on Conflict of Interest: The management and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Fötsch, holds positions directly or indirectly in the financial instruments mentioned in the publication or related derivatives, which could profit from the price development resulting from the publication.
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- Despite the steady rise of the Siemens stock, there are concerns about growth in 2025 and beyond, which could make the stock a challenging investment if the 200-day line is breached, as mentioned in the text.
