As a stock and market expert, I am constantly monitoring the development of companies that offer potentially attractive investment opportunities. Today, I am focusing on Puma, a German sports giant whose stock is now on the rise after a turbulent crash, presenting a promising comeback. With the upcoming European Football Championship and the Olympic Games next summer, Puma could be at the forefront of a surge in demand in the sports industry.

Puma’s rich history and strong brand Puma, based in Herzogenaurach, is the third largest sports goods manufacturer in the world and has an impressive history closely linked to the Dassler family dynasty. Since its founding by Rudolf Dassler in 1948, Puma has become a global brand, present in various sports and known for its innovative designs and technologies. Particularly in football, Puma demonstrates its strength and presence on the world market through partnerships with clubs like Borussia Dortmund and Manchester City, as well as outfitting numerous national teams and football stars.

Six-month chart of Puma Will the stock manage to rise above the blue 50-day line and break the downtrend? (Source: Stock Screener)

Challenges and opportunities: From currency problems to global sports events Last year, Puma faced challenges that had a negative impact on the stock market. In particular, economic difficulties in Argentina affected the company’s financial results. Despite a 6.6% increase in sales, net profit decreased by 14% and EBIT was at the lower end of the expected range. However, the upcoming year will see two major events with the European Football Championship in Germany and the Olympic Games in Paris, which could stimulate demand for sports goods.

Despite the current decline in stock price, I see Puma as one of the most interesting turnaround opportunities in the German mid-cap sector. With a historically low P/E ratio of 20.3 and an attractive dividend yield compared to competitors, Puma offers investors a potentially rewarding opportunity.

Conclusion: Puma as an attractive contrarian investment Given its strong brand presence, upcoming global sports events, and current valuation, Puma appears to be an interesting contrarian investment opportunity. Conservative investors should wait for a bottom formation or the breaking of the critical resistance at 43 euros. As the official sportswear partner of the America’s Cup, Puma will also play an important role in other major sporting events, providing additional opportunities for the company and its investors.