On June 10, Carmine De Franco of BNP Paribas Asset Management appeared on CNBC to talk about the European market. He said that European valuations are attractive compared to the US, with strength in the sector accumulating in defense and healthcare rather than technology.
De Franco was of the view that investor attention to Europe is directly related to the fundamental shifts outside the United States, finding ways to diversify portfolios through access to a region with the potential to promote stability and a certain amount of growth which, according to him, may not be as exceptional in the US but at least could be backed by a fundamental driver of performance.
He expects changes to emerge from governments that were previously very skeptical about maintaining a dynamic internal market. Since Europe remains one of the biggest markets on the planet, it could be a very interesting investment case if they can “get their act together.”
De Franco also stated that Europe offers diversification from a sector perspective. While the tech theme is a great one, it is not the only one Europe is playing. Other sectors also warrant attention, as they could benefit from the globalization and reindustrialization shifts emerging in the market.
With these trends in view, let us look at the top 10 undervalued European stocks to invest in now.
Stock market charts. Photo by Kaboompics.com on Pexels
Our Methodology
We used the Finviz stock screener to compile a list of European stocks with a forward P/E ratio under 15 and selected the top 10 stocks most popular among elite hedge funds. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1000 elite money managers. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
Note: All data was sourced on June 11.
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 (see more details here).
10 Undervalued European Stocks To Invest In Now
10. Eni S.p.A. (NYSE:E)
Forward P/E: 11.28
Number of Hedge Fund Holders: 9
Eni S.p.A. (NYSE:E) is one of the 10 Undervalued European Stocks to Invest in Now. On June 9, RBC Capital analyst Biraj Borkhataria maintained a Buy rating on Eni S.p.A. (NYSE:E) and set a price target of €18.00.
The company garnered positive investor sentiment following its solid fiscal Q1 2025, which reflected improved financial and economic fundamentals. Eni S.p.A. (NYSE:E) navigated macro-uncertainty and volatility through its flexibility and optionality, with mitigation measures worth over €2 billion in 2025.
Proforma adjusted EBIT for fiscal Q1 2025 rose 36% sequentially in a similar pricing environment to € 3.7 billion, attributed to notable E&P results, steady improvements at the company’s Enilive and Plenitude satellites, and resilient GGP delivery.
Eni S.p.A. (NYSE:E) explores, refines, produces, and sells oil, electricity, gas, and chemicals. Its operations are divided into the following segments: Exploration and Production, Global Gas and LNG Portfolio, Refining & Marketing and Chemicals, Power & Renewables, and Corporate and Other Activities. The company is headquartered in Rome, Italy, making it one of the best undervalued European stocks to invest in now.
9. WPP PLC (NYSE:WPP)
Forward P/E: 7.05
Number of Hedge Fund Holders: 9
WPP PLC (NYSE:WPP) is one of the 10 Undervalued European Stocks to Invest in Now. On June 9, Bank of America Securities analyst Adrien Hilaire maintained a Sell rating on WPP PLC (NYSE:WPP) with a price target of p560.00. The rating came after the company announced on the same day that its CEO, Mark Read, was set to leave in December 2025, resulting in uncertainty about WPP PLC’s (NYSE:WPP) operations.
The analyst based the rating update on the company’s current and future performance, raising concerns about potential near-term negative developments that may occur due to Read’s departure. Hilaire reasoned that while Read rolled out various notable changes, including the launch of WPP Open and the disposal of a stake in Kantar, WPP PLC (NYSE:WPP) has faced complications with the loss of major client relationships, which the analyst anticipates could risk continued losses in 2025.
The company’s organic sales growth also poses a concern for the analyst, who stated that it has been lagging behind Publicis, its closest competitor. WPP PLC’s (NYSE:WPP) 2025 guidance was not reiterated in the recent press release, which, according to the analyst, points towards a potential downward revision, especially since the company reported soft performance in the first half of the year.
Hilaire also stated that WPP PLC (NYSE:WPP) would have to undertake balance sheet readjustments and consider a margin reset if it intends to regain its competitive standing.
Headquartered in London, United Kingdom, WPP PLC (NYSE:WPP) is a creative transformation company that provides communications services. Its operations take place through the Global Integrated Agencies, Public Relations, and Specialist Agencies segments.
