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Bull of the Day: Deutsche Bank (DB)

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With many analysts turning bullish on European equities, it's noteworthy that Deutsche Bank (DB - Free Report)  stock was recently added to the Zacks Rank #1 (Strong Buy) list.

Landing the Bull of the Day, Deutsche Bank’s Zacks Banks-Foreign Industry is currently in the top 4% of over 240 Zacks industries. For those who haven’t noticed, Deutsche Bank’s American Depositary Receipt (ADR) has been one of the top performers this year, soaring over +50% in 2025 while the broader indexes work out of correction territory in regard to U.S. markets.  

Trading at 52-week highs of $26 a share, there could still be more upside for Deutsche Bank stock based on a pleasant trend of earnings estimate revisions. 

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Image Source: Zacks Investment Research

 

High Sentiment for European Equities

With sentiment improving regarding concerns over tariffs and economic uncertainty, European markets have been resilient. Goldman Sachs (GS - Free Report) , for instance, sees strong corporate earnings in Europe and higher defense spending as a major catalyst. This comes as there has reportedly been a record rotation of global investors shifting away from U.S. equities and increasing their European stock holdings.

Notably, Deutsche Bank analysts have shifted to a positive outlook on other European stocks, based on improved market conditions and reduced geopolitical tensions. Despite the European Union (EU) not being immune to higher tariffs from Washington, many pundits have pointed out that their biggest trade partners are still each other.

 

Deutsche Bank’s Outlook  

As one of the world’s largest financial institutions, Deutsche Bank’s steady expansion has kept investors engaged. Being the largest bank in Germany, Deutsche Bank’s total sales are expected to be up 7% in fiscal 2025 and are projected to increase another 2% in FY26 to $35.39 billion.

More intriguing and relating to Goldman Sachs' bullish commentary on European equities is that Deutsche Bank’s annual earnings are currently slated to soar 116% this year to $3.20 per share, compared to EPS of $1.48 in 2024. Plus, FY26 EPS is projected to rise another 11%.

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Image Source: Zacks Investment Research

Positive EPS Revisions

Extending Deutsche Bank’s rally has been rising earnings estimate revisions. As shown below, FY25 EPS estimates (F1) have risen 9% over the last 60 days and are now up 23% from a year ago. Even better, FY26 EPS estimates (F2) have popped 14% in the last two months and have increased 26% over the last year.

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Image Source: Zacks Investment Research

 

Conclusion & Final Thoughts

Deutsche Bank’s selection as the Bull of the Day is not to say that investors should shift away from U.S. equities, but it wouldn’t be surprising if the rally in DB continued with shares still trading at 8X forward earnings and less than 1X sales.

Furthermore, diversification is an effective hedge against economic uncertainty, and Deutsche Bank is worthy of consideration outside of the renowned U.S. banks that typically catch investors' attention.


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