11 Best European Stocks to Invest In

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1. Eaton Corporation plc (NYSE:ETN)

Number of Hedge Fund Holders: 85

Year-To-Date Return as of June 26: 3.16%

Eaton Corporation plc (NYSE:ETN) is one of the 11 best European stocks to invest in. On June 24, Wells Fargo analysts issued a note highlighting the impact of geopolitical tensions on investment strategies. The analysts cited recent global tensions, specifically in the Middle East, with Israel accusing Iran of violating a ceasefire agreement announced by President Trump.

In the note, the analysts acknowledge that on June 23, defensive sectors, such as utilities, consumer staples, and real estate, outperformed broader markets despite concerns over Middle East conflicts. To them, the scenario suggests that investors prefer stable returns during periods of uncertainty.

Most importantly, the analysts stated that the uncertainty surrounding the potential escalation of an air war between Israel and Iran creates a favorable environment for investments in artificial intelligence (AI)-related stocks. This is because AI development is expected to continue regardless of geopolitical outcomes. To that end, the analysts identified a 25-stock basket of companies that may benefit from the investments. Eaton is among the three companies in the Electrical Equipment group. Others in this group include GE Vernova (NYSE:GEV) and Vertiv (NYSE:VRT).

Eaton Corporation plc (NYSE:ETN) is a power management company. It makes electrical, hydraulic, and mechanical systems that help manage energy efficiently and safely. Its key products include circuit breakers, power distribution equipment, hydraulics for industrial and aerospace applications, and vehicle components such as transmissions. Eaton is an American corporation domiciled in Ireland.

While we acknowledge the potential of ETN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ETN and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Value Penny Stocks to Buy According to Analysts and 12 Best Augmented Reality Stocks to Buy According to Analysts.

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