In this article, we will discuss the 11 Best Italian Stocks to Buy in 2026.
Growing concerns that artificial intelligence cannot live up to the hype are fueling a rotation away from large-cap US stocks. As the ‘AI fear trade’ puts the prospects of a range of industries and markets under scrutiny, investors are looking elsewhere for highly discounted opportunities.
While the focus remains on emerging markets that have lagged US markets in recent years, Italy is becoming another battleground for attractive investment opportunities. FTSE MIB, the primary benchmark for Italian equities, is already up by about 5%, dwarfing the 1% gain for the S&P 500.
Italian equities have outperformed their European peers, driven by positive corporate developments and the resilience of the heavyweight financial sector.
The impressive rally that began last year comes on the easing of President Donald Trump’s tariffs on European countries.
Michael Reynolds, vice president of investment strategy at Glenmede, told CNN: “A lot of things went right for international stocks in 2025. After a couple years of lackluster fundamentals, foreign equities put together a strong year of earnings growth,” Reynolds said. “This was highlighted by fiscal stimulus in Europe and AI-related growth in Asia.”
According to Reynolds, the weakening of the US dollar is likely to benefit international stocks by providing a tailwind.
Bank of America Global Research has already touted opportunities in Italy, citing the country’s steadier political and fiscal backdrop. According to the research firm, there are no significant risks in Italy as the stability of the current government remains intact heading into the next general election in the second quarter of 2027.
According to Bloomberg, Italian stocks are in favor as investors flock to sectors exposed to the European nation to escape harsh US tariffs. That was evident as the FTSE MIB rallied 30% in 2025 compared to a 14% advance of the Stoxx Europe 600 Index.
With this in mind, let’s now take a look at the 11 Best Italian Stocks to Buy in 2026.
Our Methodology
To list the 11 Best Italian Stocks to Buy in 2026, we used a screener and sifted through several online rankings. Next, we chose the companies having headquarters in Italy and in which analysts saw upside potential. These stocks were also widely held by leading hedge funds during the fourth quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Italian Stocks to Buy in 2026
11. Assicurazioni Generali SpA – ADR (OTCMKTS:ARZGY)
Assicurazioni Generali SpA – ADR (OTCMKTS:ARZGY) is among the best Italian stocks to buy in 2026. On February 23, Assicurazioni Generali SpA – ADR (OTCMKTS:ARZGY) recently purchased 740,000 shares of its own stock. It made the purchases between February 16 and 20.
Assicurazioni Generali spent a total of €26 million on the share purchases, paying an average of €35.58 per unit. It added these shares to its treasury. The company now has a total of 51.3 million shares in its, and this hold represents 3.3% of Assicurazioni Generali’s treasury shares.
Notably, this treasury purchase follows Assicurazioni Generali’s issuance of €650 million in subordinated notes between January 7 and February 13. These notes mature in 2036, according to the issuance notice.
In other news, Deutsche Bank named Assicurazioni Generali among its top insurance stock picks on January 7. The bank has a Hold rating on Assicurazioni Generali stock with a price target of €37.50. According to Deutsche Bank, European issuers like Assicurazioni Generali are poised for about 9% earnings growth, 8% book value growth, and a 4.5% dividend yield.
Assicurazioni Generali SpA – ADR (OTCMKTS:ARZGY) is the largest insurance company in Italy and one of the world’s largest. It offers a diverse range of insurance and financial products. It serves individuals, families, and businesses. The company is based in Trieste, Italy.
10. Ermenegildo Zegna NV (NYSE:ZGN)
Ermenegildo Zegna Group (NYSE:ZGN) is among the best Italian stocks to buy in 2026. On February 12, Morgan Stanley upgraded Ermenegildo Zegna Group (NYSE:ZGN) stock rating to Equalweight from Underweight and assigned it a price target of $11. For this action, Morgan Stanley analysts pointed to Zegna’s better-than-expected Q4 2025 sales results.
Morgan Stanley analyst Natasha Bonnet is cautiously optimistic regarding Zegna’s store portfolio optimization. However, the analyst remains concerned about the company’s wholesale rationalization, particularly for the Tom Ford and Thom Browne brands.
Previously on February 5, UBS analysts upgraded Ermenegildo Zegna to a Buy from a Neutral and boosted the price target to $11.50 from $11. In taking this action, the analysts pointed to strong momentum in the company’s core Zegna brand, noting that Western consumers were driving this momentum.
The Zegna brand contributes about 60% of the company’s total sales. According to the analysts, the company’s strategies are resonating with affluent consumers across generations. They note that this is contributing to growth prospects and solid profitability.
In Q4, Ermenegildo Zegna’s revenue rose 4.6% to €591 million. Full-year revenue climbed 1% to €1.917 billion.
Headquartered in Trivero, Italy, Ermenegildo Zegna NV (NYSE:ZGN) makes and sells luxury clothing, footwear, and accessories. It also sells jewelry, fragrances, and eyewear. It sells its products through brands such as Zegna, Tom Ford fashion, and Thom Browne.
