In this article, we will take a look at 11 Undervalued European Stocks to Buy Now.
European markets closed at a record high on February 11, with gains in commodity-related companies offsetting declines in technology and financials, while traders digested a solid US jobs report. The pan-European STOXX 600 index finished 0.1% higher at 621.58 points, with energy-related shares leading the charge, rising 3.8% to their highest level since 2008. However, the broader technology sector fell 2%, rendering it the worst-performing category this week, though insurance stocks faced identical declines.
Markets also analyzed data suggesting that the US economy added significantly more jobs than predicted in January, indicating labor market steadiness that might enable the Federal Reserve to keep interest rates low for a longer period of time.
This comes after a recovery on February 6 that gave the STOXX 600 a weekly gain, though concerns about the technology sector continue to be prevalent. Speaking on the tech uncertainty, Kathleen Brooks, research director at XTB, said the following:
“There is a bit of less of a concern about some of the worst AI fears, although the radius of concern around AI started growing lately. So there are now concerns about who will be the losers in the AI world and it’s not just all about winners, which is what it’s been for a very long time.”
Investors were also drawn to political issues when British Prime Minister Keir Starmer indicated on February 9 that he would disregard resignation calls, even those from the leader of his party in Scotland, following the departure of a second staff member from a team that was in disarray over the appointment of Peter Mandelson as the US ambassador.
Our Methodology
For this list, we compiled a list of U.S.-listed European stocks with a forward P/E ratio of less than 15. We have ranked these stocks based on the number of hedge funds invested in them, as of Q3 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)
Forward P/E Ratio: 9.12
Number of Hedge Fund Holders: 13
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) ranks among the best undervalued European stocks to buy now. On January 12, BofA Securities cut Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)’s price target to TRY126.40 while retaining a Buy rating for the telecom company. The firm expects Turkcell’s revenue to climb by about 7% excluding inflation in 2026, with strong margins of 43%.
BofA sees the commercial introduction of 5G in April 2026 as a possible catalyst for the company’s performance. The firm also emphasized Turkcell’s unique presence in data centers, which is expected to contribute about 10% of revenue over the following five years.
Another favorable point mentioned by BofA was the company’s financial position, which is expected to be 0.9x net debt to EBITDA in 2026. According to the firm, Turkcell’s leverage level and modest net foreign exchange exposure could enable it to sustain a dividend payment ratio of 50%.
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a Turkish provider of converged telecommunication and technology services. The core offerings of the company include tower and satellite services, fixed data services, international roaming services, and voice services.
