Why Deutsche Bank Aktiengesellschaft (DB) Is Surging in 2025
The financial services sector has entered 2025 on a wave of strong performance and renewed investor interest. This sector consists of banking, payments, insurance, and asset management and is a cornerstone of the global economy.
These stocks didn't do too well during the 2022 downturn, as there was uncertainty regarding whether or not the Federal Reserve would bail out regional banks. However, after the 'mini banking crisis' calmed down, these stocks have performed quite well despite the macro trends being uncertain. And for some stocks, that momentum has been even stronger so far this year. It's worth looking at why.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article.
For this article, I screened the best-performing financial services stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
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Number of Hedge Fund Holders In Q4 2024: 15
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a leading global financial services provider offering corporate banking, investment banking, private banking, and asset management services to clients worldwide.
The primary reason the stock has surged in 2025 is the bank's exceptional first-quarter results, which showed a 39% year-over-year increase in profit before tax, reaching €2.8 billion. This was driven by 10% growth in net revenues and a 2% decline in noninterest expenses.
The bank's return on tangible equity rose to 11.9%, and the cost/income ratio improved to 61.2%, both in line with or exceeding 2025 targets. These results, announced on April 29, 2025, led to a sharp rally in the stock as investors responded to the clear demonstration of successful cost discipline and revenue growth across all business segments.
Deutsche Bank Aktiengesellschaft (NYSE:DB) stock is up 53.72% year-to-date.
Overall DB ranks 9th on our list of the financial services stocks that are surging in 2025. While we acknowledge the potential of DB as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DB but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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