Top DAX Index stocks for July: Volkswagen, Rheinmetall, Deutsche Bank, Zalando

The DAX Index has remained resilient in recent months and is gradually attempting to retest its all-time high of 25,510. It has climbed nearly 15% from its lowest level this year. This period of consolidation could pave the way for further gains, as the index has formed an inverted head-and-shoulders pattern—a bullish technical signal. This article highlights some of the top DAX companies to watch this month.

Volkswagen and other auto groups

Volkswagen Group stock has been in a strong downward trend in the past few months and is now hovering at its lowest level since 2010. The company is facing a mountainload of challenges, including the soaring competition from Chinese brands like Xpeng, Li Auto, BYD, and Xiaomi. 

In June, media reports said that it was considering major layoffs and plant closures. This will not be a simple thing because of the unions in Saxony. It is also said to be closing the autonomous vehicle unit that it spent billions of euros building. 

Therefore, the upcoming earnings on July 24 will be important as they will give the management a chance to explain its turnaround actions. It will also offer its guidance at a time when many short-sellers have circled the stock.

Rheinmetall stock in focus after F126 frigate cancellation

Rheinmetall stock retreated sharply in June after the German government cancelled the F126 frigate business. It dipped to 897 euros, its lowest level since February last year, and 55% below its all-time high. 

The German government cited the spiraling costs for ending the deal, a move that will affect Rheinmetall’s guidance when it publishes its financial results on August 8. 

Traders will continue to watch how its business evolves amid the ongoing geopolitical issues in Europe and other countries.

Deutsche Bank in focus ahead of earnings

Deutsche Bank, the biggest banking group in Germany, has crawled back in the past few months, rising by over 25% from its lowest point in March this year. 

It will be in the spotlight in July as the company publishes its financial results, which will shed light on its business. These numbers are expected to show that its business continued growing in the last quarter, helped by its investment bank division. 

The most recent results showed that its profit before tax jumped by 7% in the first quarter to 3 billion euros, with the post-tax profit hitting 2.2 billion euros. It also announced that it would continue focusing on shareholder returns.

Zalando stock in focus amid accounting investigation

Zalando, a top player in the e-commerce industry, has been in a slow uptrend in the past few months, moving from the year-to-date low of 18.65 euros to a high of 26.93 euros in June. It then pulled back a bit last week after a major news that the German financial watchdog was investigating its 2025 financial statement. 

BaFin, the regulator, noted that it had evidence that Zalando had some major evidence that the company breached accounting regulations. It pointed to Zalando’s acquisition of About You, where it omitted some information. Zalando will publish its numbers on August 4.

There will be other DAX Index companies to watch in July: Siemens Energy, Bayer, Commerzbank, and BMW.