In this article, we will look at the 11 Best European Stocks to Invest In.
US stocks don’t always lead. That’s the sentiment echoed across the equity markets as investors increasingly eschew US stocks in favor of international names. While the ACWI ex-USA index has returned 15.7% year-to-date, the S&P 500 has lagged, with a 1.5% gain.
European stocks continue to outperform their US counterparts, as indicated by the STOXX Europe 600, which has recorded a 5.25% year-to-date gain. Germany’s DAX index is up by 18% year to date, while the UK’s FTSE index is up by about 5.76%.
“In 2025 thus far, there are some clear indications that investors are adopting the ‘ABUSA’ (‘anywhere but the USA’) mindset. This shift is partly driven by concerns over market volatility in the US, uncertainty regarding policies and relatively weaker performance compared to global counterparts,” says David Rosenstrock, director of financial planning and investments at Wharton Wealth Planning.
The optimism on European trade floors stands in stark contrast to the pessimistic outlook that pervades the European economy. Due to political instability, a lack of competition, and bureaucratic red tape, many are struggling with stagnation. Threats of tariffs and a second Trump administration were predicted to put the nail in the coffin of Europe’s economy.
According to Marcos Segrera, a CFP and principal at Evensky & Katz/Foldes Wealth Management, True diversification in the equity market entails tapping into different economic cycles, monetary policies, and growth rivers. The analyst encourages investments in foreign stocks as a way of diversifying from US-specific risks.
With that in mind, let’s look at the 11 Best European Stocks to invest in.
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Our Methodology
To compile our list of the best European stocks to invest in, we selected companies using the Finviz screener, applying filters for the year-to-date returns. We also considered the Q1 2025 hedge fund sentiment around the holdings for further insight. Finally, we ranked the stocks according to hedge fund ownership and selected the first 11. This list is in ascending order.
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).
Best European Stocks to Invest In
11. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
Year-To-Date Return as of June 26: 57.74%
Number of Hedge Fund Holders: 12
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is one of the 11 best European stocks to invest in. On June 24, BBVA announced a strategic collaboration with digital trade finance platform Olea to expand its supply chain finance (SCF) offerings worldwide. The collaboration targets emerging markets and Asia, aiming to streamline cross-border transactions with real-time data, risk analysis, and faster execution.
With Olea’s reach across 70+ trade corridors, the partnership addresses financing challenges for mid-sized suppliers and supports scalable, inclusive SCF solutions. BBVA plans to integrate future innovations like AI-driven credit scoring and sustainable finance models, further enhancing its role in next-gen global trade.
Banco Bilbao Vizcaya Argentaria SA (BBVA) offers retail, private, wholesale banking, and asset management services across six regions: Spain, the U.S., Mexico, Turkey, South America, and the rest of Eurasia. Its operations span banking and insurance activities, with regional subsidiaries and branches supporting localized financial services throughout Europe, the Americas, and Asia.
10. Banco Santander, S.A. (NYSE:SAN)
Year-To-Date Return as of June 26: 81.17%
Number of Hedge Fund Holders: 18
Banco Santander, S.A. (NYSE:SAN) is one of the 11 best European stocks to invest in. On June 25, the company’s US subsidiary, Santander Bank, announced that it had reached an agreement to sell seven of its branches in the Pennsylvania area to Community Bank N.A.
The divestment is part of Santander Bank’s push to become a digital-first bank. Additionally, the sale underscores Santander’s conviction that its customers will continue to receive quality service from Community Bank.
Consequently, the sale will enable the bank to refine its physical footprint as it enhances its digital operations nationwide. Launched in 2024, the bank’s digital operations under the Openbank division have attracted over $4 billion in deposits and served more than 100,000 customers.
Banco Santander, S.A. (NYSE:SAN) is a global financial institution that provides a wide range of financial products and services to individuals, businesses, and organizations. These include banking, lending, investment, and insurance products, as well as support for companies and communities.
9. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 27
Year-To-Date Return as of June 26: 31.50%
British American Tobacco plc (NYSE:BTI) is one of the 11 best European stocks to invest in. On June 10, Deutsche Bank raised BTI’s price target to £38.00 from £35.00. The firm maintained its “Buy” rating on the company’s stock.
British American Tobacco’s June 3 pre-close update projected stronger-than-expected first-half 2025 revenue, driven largely by its rebound in the U.S. market. The company anticipates renewed revenue and profit growth this year, supported by strong performance in its Combustibles segment and Velo Plus, alongside impressive margins and a 6.17% dividend yield.
Globally, Velo continues to thrive—especially in the AME region—despite regulatory hurdles in APMEA markets like Bangladesh and Australia. While illicit vape activity in the U.S. may temper near-term gains, BAT still expects modest New Category growth in H1 and acceleration to mid-single digits by year-end, buoyed by Velo’s momentum and the rollout of glo Hilo.
British American Tobacco plc (NYSE:BTI) is a British consumer goods company. It produces and sells tobacco and nicotine products, including traditional cigarettes, heated tobacco, vapour devices, and oral nicotine pouches. Its key brands include Dunhill, Lucky Strike, Pall Mall, Camel, Vuse (vapes), glo (heated tobacco), and Velo (nicotine pouches). The company operates in over 180 markets across the Americas, Europe, Asia-Pacific, the Middle East, and Africa.
