High Growth Tech Stocks to Watch in October 2024

As the German market navigates a challenging environment marked by geopolitical tensions and fluctuating oil prices, major indices such as the DAX have seen recent declines, reflecting the general caution in Europe. In this environment, identifying promising, high-growth technology stocks requires a focus on companies with robust innovation capabilities and the ability to adapt to changing economic conditions.

Top 10 fastest growing technology companies in Germany

Click here to see the full list of 42 stocks from our German high-growth tech and AI stock screener.

Below we present a selection of the stocks filtered out from our screen.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Northern Data AG offers high-performance computing infrastructure solutions for companies and research institutions worldwide with a market capitalization of 1.61 billion euros.

Operations: The company generates revenue primarily from Peak Mining (156.13 million euros), Taiga Cloud (22.13 million euros) and Ardent Data Centers (31.46 million euros). The consolidation segment has a negative impact of €178.50 million on the overall sales structure.

Northern Data, which was recently included in the S&P Global BMI Index, is showing strong performance with forecast sales growth of 32.5% per year, well above the German market average of 5.4%. This growth is supported by significant R&D investments, which have grown continuously and are in line with their strategic focus on expanding their technological capabilities in high performance computing and AI solutions. Despite current unprofitability and a highly volatile share price, profits are expected to grow 68.2% per year over the next three years. The company reiterated its ambitious revenue target for the 2024 financial year of between 200 and 240 million euros – a potential increase of up to 200%, reflecting both aggressive growth strategies and recent market expansions.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: All for One Group SE, together with its subsidiaries, offers business software solutions for SAP, Microsoft and IBM in Germany, Switzerland, Austria, Poland, Luxembourg and internationally with a market capitalization of 247.03 million euros.

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Operations: The company generates revenue mainly from the CORE segment with a contribution of 442.47 million euros and the LOB segment with a contribution of 77.01 million euros. The focus on enterprise software solutions for major platforms such as SAP, Microsoft and IBM underlines the company’s strategic positioning in the IT services sector in several European countries and internationally.

Despite a modest revenue growth forecast of 6.4% per year, All for One Group SE is characterized by a robust profit increase, which is expected to rise by 24.6% annually. This performance is well above the average for the broader German market and highlights the company’s effective strategy in leveraging technology solutions tailored to complex business environments. Recent investments in research and development have been critical in improving their offering and driving this growth trajectory; In fact, these expenditures represent a strategic commitment to innovation in their sector. Furthermore, recent activities, including a share buyback program, reflect confidence in the company’s financial health and future prospects, which is also reflected in significant improvements in net profit of -2, EUR 75 million to EUR 0.525 million in the last quarter alone.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: adesso SE, together with its subsidiaries, offers IT services in Germany, Austria, Switzerland and internationally with a market capitalization of around 482.50 million euros.

Operations: The company generates revenue primarily from IT services (1.39 billion euros) and IT solutions (128.12 million euros). The company operates in Germany, Austria, Switzerland and internationally.

Despite a net loss that increased from EUR 5.89 million in the last half-year report to EUR 9.86 million, Adesso SE continues to demonstrate potential in the high-growth German technology sector with a significant increase in sales to EUR 633.47 million. Previously 548.19 million euros. This growth trajectory is underlined by an expected annual sales increase of 11.7%, which is above the German market average of 5.4%. However, challenges remain as R&D spending and interest payments weigh on finances and profitability is only forecast within the next three years given competitive pressures and ongoing investments in innovation aimed at offsetting current losses.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any stocks mentioned.

Companies covered in this article include DB:NB2, XTRA:A1OS and XTRA:ADN1.

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