9 Consecutive Winning Days — and Rheinmetall Keeps Going
There are weeks when you look at a stock and ask yourself: What do they know that I don't? At Rheinmetall, that's exactly what just happened. 9 trading days in a row the stock has climbed. From €1,086 to €1,140. Every single day a little higher. Sounds boring? It's not. Because 9 consecutive winning days is something very few stocks achieve. And when it happens, it's usually right before something big.
The Story Behind It — Europe's Defense Boom
Rheinmetall is Germany's largest defense contractor. Tanks, ammunition, air defense — everything Europe urgently needs right now. Since Russia's war in Ukraine, business has been booming. Countries like Poland, Romania, Germany itself — all are buying. And Rheinmetall can deliver.
The stock stands at €1,140 today. That's +23.5% year-to-date and +30% over the last 12 months. Anyone who got in 3 years ago has more than quadrupled their money. Market capitalization: €55 billion.
On August 6, quarterly results are coming. Analysts expect earnings per share of €6.46 (consensus). That would be almost double last year's quarter (€3.02). Revenue: €3.16 billion expected. The numbers should show whether the order boom is actually bringing in money.
What This Means for You
Don't get me wrong — I'm not telling you what to buy. But when a stock rises for 9 days straight and nobody sells, something is happening. Institutional investors, the big players with thick portfolios, are buying in. Why? They expect strong numbers on Wednesday. Or they're positioning long-term because Europe's defense budgets will rise for years to come.
The risk: If the numbers disappoint, it can go down just as fast. A stock with 9 consecutive winning days often has no more patience to the upside if the story doesn't deliver.
How Pros Are Reacting
The big investors are making a simple bet: Europe's rearmament is not a 2-year trend, but a 10-year cycle. NATO states have promised to spend 2% of GDP on defense. Many aren't there yet. That means: Order books at Rheinmetall, BAE Systems, Leonardo — they'll all be full for years.
Analysts from JP Morgan, Barclays and Berenberg have the stock on "Buy" with price targets between €1,600 and €1,800. That would be another +40% to +58% from here.
First Steps for Beginners
If you're looking at defense stocks for the first time: They're not for everyone. Some don't want to invest their money in weapons manufacturing — that's a personal decision. Others see it as a long-term infrastructure trend, comparable to energy or technology.
Important: Defense stocks are highly volatile. Peace negotiations, political decisions, budget cuts — everything can turn the price within days. Anyone entering here should be patient and not get nervous at every -5% day.
My advice: Watch the quarterly results on August 6. Read what the analysts say. And ask yourself: Do I believe Europe will spend more or less on defense over the next 10 years? Your answer is more important than any price chart.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not an indicator of future results.