Volkswagen shares: Great potential despite the downturn - financial expert analyzes DAX hot pick 2024

Volkswagen shares: Great potential despite the downturn - financial expert analyzes DAX hot pick 2024

According to a report by www.aktienwelt360.de,

Volkswagen's preferred stock (WKN: 766403) has experienced significant price losses recently and currently has a very low valuation. At the same time, the dividend yield has increased significantly. These developments make VW shares an interesting DAX hot pick for 2024.

VW shares are currently trading 58% below their all-time high and are only valued at 3.5 times expected earnings for 2023. Experts predict a 7.5% increase in profits for the current year compared to the previous year, which would mean the second-best result in the company's history. Nevertheless, the price has fallen due to uncertainties regarding the China business and the company's investment rate.

The outlook for Volkswagen is uncertain, particularly due to the ruinous price war in China and increased competition from Chinese electric car manufacturers in Germany. Despite a high dividend yield of 8.17%, there is a certain dependence on the China business. The future market penetration of electric cars in Germany is also unclear.

However, given the current situation and the potential turnaround opportunities, VW shares appear to be a promising DAX hot pick that could be promising in the next stock market year.