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.
8. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 30
Year-To-Date Return as of June 26: 8.10%
Unilever PLC (NYSE:UL) is one of the 11 best European stocks to invest in. On June 18, it was reported that the company was exploring the sale of its healthy snack brand, Graze. The proposed sale is part of a strategic shift away from food products and towards personal care and beauty items.
The company has reportedly begun reaching out to various consumer goods groups and food manufacturers. Unilever is reportedly analyzing its interest in purchasing Graze, which it acquired in 2019 for £150 million. The healthy snack brand could be valued between £50 million and £80 million in any sale now.
The divestment of Graze comes as Unilever’s Chief Executive Officer tries to reorient the company’s product portfolio. The CEO has already increased focus on the health, beauty, and personal care segments while reducing the footprint of the food business.
Unilever PLC (NYSE:UL) is a global consumer goods company headquartered in the UK. It makes and sells everyday products across five segments: Beauty & Wellbeing, Personal Care, Home Care, Foods, and Ice Cream. Its top brands include Dove, Knorr, Hellmann’s, Magnum, Rexona, and Ben & Jerry’s.
7. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 32
Year-To-Date Return as of June 26: 13.19%
GSK plc (NYSE:GSK) is one of the 11 best European stocks to invest in. On June 24, the company announced receipt of FDA approval for a 200 mg/mL autoinjector of Benlysta (belimumab) for the treatment of active lupus nephritis (LN). The approval applies to children aged five years and above.
Benlysta autoinjector is the first-of-its-kind treatment option for at-home administration. The drug is a B-lymphocyte stimulator (BLyS)-specific inhibiting monoclonal antibody. It works by binding to soluble BLyS, which inhibits the survival of B cells, including autoreactive B cells, and reduces the differentiation of B cells into immunoglobulin-producing plasma cells. It does not bind B cells directly.
The 200 mg/mL autoinjector was previously approved for pediatric patients with active systemic lupus erythematosus (SLE) in 2024. Benlysta was the first and only approved biologic for both SLE and lupus nephritis in over 50 years, including for the pediatric population. The autoinjector will be available for patients and their caregivers immediately.
GSK plc (NYSE:GSK) is a UK-based global biopharmaceutical company. It researches, develops, and sells medicines and vaccines for infectious diseases, HIV, respiratory conditions, cancer, and immune-related disorders. Its key products include Shingrix (shingles vaccine), Nucala (asthma), and HIV treatments through its ViiV Healthcare joint venture.
6. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 33
Year-To-Date Return as of June 26: 21.26%
Novartis AG (NYSE:NVS) is one of the 11 best European stocks to invest in. On June 23, the company confirmed it had completed the acquisition of Regulus Therapeutics. Following the acquisition, the shares of Regulus ceased trading on the NASDAQ exchange, and the company became a fully owned subsidiary of Novartis.
The acquisition marks a crucial step in the company’s effort to advance the clinical development of a potential first-in-class medicine for autosomal dominant polycystic kidney disease. Regulus Joins Novartis with Farabursen, an investigational next-generation oligonucleotide aiming to reduce the growth of cysts and kidney size.
Novartis is a global healthcare company dedicated to discovering and developing innovative medicines that improve and extend people’s lives. It also focuses on addressing significant medical challenges, including cancer and rare genetic disorders, by prioritizing research and development, as well as innovative access approaches.
Novartis AG (NYSE:NVS) is a global pharmaceutical company that discovers, develops, manufactures, and markets medicines to improve and extend people’s lives. It also focuses on using science-based innovation to address significant healthcare challenges. Novartis operates in over 100 countries, with the US accounting for about one-third of its revenue.
5. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 50
Year-To-Date Return as of June 26: 10.84%
Shell plc (NYSE:SHEL) is one of the 11 best European stocks to invest in. On June 24, the company confirmed the repurchase of 3.3 million shares across multiple trading avenues. The repurchase is part of the company’s push to return value to shareholders.
The repurchase is also part of Shell’s buyback program, announced on May 2, 2025. The program is scheduled to continue through July 25, 2025, with BNP Paribas managing trading decisions independently. The transactions are executed through on-market and off-market mechanisms. The continued repurchase of shares affirms a strong commitment to capital return for shareholders.
Shell plc (NYSE:SHEL) is a global energy company headquartered in the UK. It explores for, produces, refines, and markets oil and natural gas, while also manufacturing chemicals and lubricants. Its key businesses include Integrated Gas, Upstream, and Downstream, with growing investments in low-carbon energy sources such as biofuels, hydrogen, and electric vehicle charging.
4. Trane Technologies plc (NYSE:TT)
Number of Hedge Fund Holders: 56
Year-To-Date Return as of June 26: 15.75%
Trane Technologies plc (NYSE:TT) is one of the 11 best European stocks to invest in. On June 10, Trane announced the expansion of its liquid cooling capabilities for data centers. As part of the initiative, the company introduced new scalable Coolant Distribution Unit (CDU) solutions with capacities ranging from 2.5 megawatts (MW) to 10 MW.
The new CDUs complement Trane’s existing 1 MW CDU, providing a broader range of direct-to-chip cooling solutions. According to the company, the expanded platform is designed to address the high-density computing needs of data centers, particularly those driven by the increasing demand for artificial intelligence (AI) workloads.
The company said that the new CDUs enable modular scalability. They are also optimized for high-density data centers, ensuring efficient heat transfer directly from IT equipment. Most importantly, the new platform offers up to 10 MW of cooling capacity in a space-saving, factory-skid-mounted design, which also facilitates ease of serviceability.
Trane Technologies plc (NYSE:TT) is a climate solutions company based in Ireland. It designs, manufactures, and services energy-efficient heating, ventilation, air conditioning (HVAC), and refrigeration systems. Its key brands are Trane (for buildings and homes) and Thermo King (for transport refrigeration). The company operates across the Americas, EMEA, and Asia Pacific.
3. Johnson Controls International plc (NYSE:JCI)
Number of Hedge Fund Holders: 59
Year-To-Date Return as of June 26: 30.94%
Johnson Controls International plc (NYSE:JCI) is one of the 11 best European stocks to invest in. On June 17, 2025, UBS reiterated its “Buy” rating on Johnson Controls and maintained its price target of $116.00. The investment firm cited a potential 70% earnings upside for the company from fiscal year 2025 through fiscal year 2028. UBS’s analysis indicates that this growth will come on the back of structural self-help, margin catch-up, and robust capital returns.
UBS noted that Johnson Controls announced a $9 billion increase in its share repurchase authorization the week before June 17, 2025. Approximately $5 billion is expected to be deployed over the next three to six months.
Another factor that supports UBS’s positive outlook is confidence in Johnson Controls’ new CEO, Joakim Weidemanis. Weidemanis took over the reins in 2024. According to UBS, the CEO has previously achieved a 600 basis point operating margin improvement at Danaher’s Diagnostics business between 2020 and 2024.
Johnson Controls International plc (NYSE:JCI) is a building technology and solutions company headquartered in Ireland. It designs, installs, and services smart, energy-efficient systems for heating, ventilation, air conditioning (HVAC), fire safety, security, and building management. Its leading brands include Johnson Controls and Tyco. The company operates through four segments: Building Solutions North America, EMEA/LA, Asia Pacific, and Global Products.
2. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 63
Year-To-Date Return as of June 26: 7.62%
Medtronic plc (NYSE:MDT) is one of the 11 best European stocks to invest in. On June 23, the company announced the appointment of Dr. Joon Sup Lee as an independent director to its Board of Directors. The appointment went into effect on June 18, 2025.
Dr. Lee’s appointment was a result of Medtronic increasing the size of its Board. The new director will serve on the Board’s Science and Technology Committee and the Compensation and Talent Committee. Dr. Lee is currently the CEO of Emory Healthcare, Inc., overseeing Georgia’s most comprehensive academic health system.
Before joining Emory Healthcare, Dr. Lee was the executive director of the University of Pittsburgh Medical Center’s (UPMC) Heart and Vascular Institute from 2018 to 2020. He was also a professor of medicine at the University of Pittsburgh School of Medicine. He held various leadership roles at UPMC, including Director of Interventional Cardiology and Director of the Cardiac Catheterization Laboratory.
Medtronic plc (NYSE:MDT) is an Irish-domiciled healthcare technology company. It develops and sells medical devices and therapies for chronic conditions across four main segments: Cardiovascular, Neuroscience, Medical Surgical, and Diabetes. Its top products include heart devices, spinal implants, surgical tools, insulin pumps, and neuromodulation systems. Medtronic serves over 79 million patients annually in more than 150 countries.
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.
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