Since the outbreak of the Ukraine war, small cap stocks have been relatively weak and have shown a significant underperformance compared to large cap stocks. Given this unusually long period of weakness, a comeback of the „little ones“ is only a matter of time.

One stock that has defied this weakness in a remarkable way is Atoss Software. With a gain of more than 1,500% in the past ten years, the TecDAX-listed company is one of the best German growth stocks.

Atoss Software: Specialist in HR software If you are not familiar with the company listed in the TecDAX and SDAX, let me introduce you to Atoss Software. Founded in 1987 in Munich, the company specializes in software for workforce management and holds a leading position in this niche. To maintain its technological leading position and constantly develop its software solutions, the company invests 20% of its revenues in research and development each year.

Atoss software is used for time and workforce management and also serves to optimize the use of employees in companies. The software is used in more than 50 countries and is available in nine languages. More than 10,000 companies of different sizes and industries use the applications of the Munich-based company.

2023 was probably the 18th consecutive record year Atoss has been growing steadily for years and has managed to increase its revenues and profits for 17 consecutive fiscal years, despite the financial crisis and the corona pandemic. It is highly likely that the past fiscal year, 2023, also brought new records.

In the first nine months of 2023, revenues increased by 35% to 110.3 million euros. Earnings before interest and taxes (EBIT) improved by 70% to 36.7 million euros. This resulted in an EBIT margin of 33%.

As a result, Atoss raised its forecast slightly for the full year. The management now expects revenues of 145 million euros, instead of the previously forecasted 142 million euros. This corresponds to an increase of 27% compared to the previous year. The operating EBIT margin is also expected to be slightly better than the previously forecasted 30%.

Source: www.aktienscreener.com

Breakout to new highs After a pause since the summer, the stock has recently risen again. This morning, a positive analyst assessment provided tailwind and even pushed the Atoss stock to a new all-time high of 238.50 euros.

If the price can now establish itself above the July high (234.50 euros), this could be the starting signal for a strong medium-term trend. In the medium term, the Atoss stock could then break into the 300 euro range.