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.
10. Banco Santander, S.A. (NYSE:SAN)
Forward P/E Ratio: 8.92
Number of Hedge Fund Holders: 16
Banco Santander, S.A. (NYSE:SAN) ranks among the best undervalued European stocks to buy now. On February 4, Morgan Stanley reduced Banco Santander, S.A. (NYSE:SAN) to Equalweight from Overweight, noting limited upside after a robust stock surge and increased execution risk related to the bank’s growth in the United States amid its announced acquisition of Webster Financial.
Morgan Stanley forecasts that the Webster acquisition will generate a return on investment of 13% to 14%, which is lower than Santander’s stated expectations. The firm expects that the transaction will increase earnings by 5% to 6% by 2028.
In comparison to recent comparable U.S. bank mergers like Fifth Third Bancorp’s takeover of Capital Bancorp and Huntington Bancshares’ merger with of Cadence Bank, Morgan Stanley characterized these estimates as ambitious since they assume cost synergies of over $800 million, or roughly 55% of Webster’s cost base.
Banco Santander, S.A. (NYSE:SAN) also announced a €5 billion share repurchase, including a significant buyback related to the sale of its Polish operations, in line with Morgan Stanley’s projections.
Banco Santander, S.A. (NYSE:SAN) is a major retail and commercial bank headquartered in Spain that has a significant market share in key European and Americas markets. It specializes in consumer and business lending, deposit-taking, and payment services, and aggressively manages its capital structure through dividends and share buybacks.
9. ING Groep N.V. (NYSE:ING)
Forward P/E Ratio: 9.14
Number of Hedge Fund Holders: 16
ING Groep N.V. (NYSE:ING) ranks among the best undervalued European stocks to buy now. On February 3, Deutsche Bank upgraded ING Groep N.V. (NYSE:ING) to Buy from Hold and boosted its target price to €28 from €25, citing solid results, including net interest income and fee beats, as well as cost reduction. According to analyst Benjamin Goy, ING capitalizes on above-average growth in volume, an extensive replicating portfolio, and fee income rise, which is backed by share increases.
The analyst stated that Deutsche Bank boosted its projections significantly following the results. ING Groep N.V. (NYSE:ING) is trading at 8.7 times EPS, boasts a total yield of 9%, and is valued at 1.35 times tangible book value, according to 2027 projections, delivering a 16% return on tangible equity.
Even with decreased consensus projections, ING Groep N.V. (NYSE:ING) trades at a price premium to European banks, a difference that Deutsche Bank recently said had increased to a six-month high of -8%.
ING Groep N.V. (NYSE:ING) is a Dutch multinational banking and financial services company that operates in five business segments: Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking.
8. ArcelorMittal SA (NYSE:MT)
Forward P/E Ratio: 9.37
Number of Hedge Fund Holders: 20
ArcelorMittal SA (NYSE:MT) ranks among the best undervalued European stocks to buy now. On February 5, ArcelorMittal SA (NYSE:MT) revealed its fourth quarter and full-year 2025 earnings, with the steel giant reporting Q4 2025 earnings per share of $0.86, 38.71% higher than the consensus estimate of $0.62, though revenue came in below expectations at $14.97 billion.
Renewable energy continues to be a major focus area for ArcelorMittal SA (NYSE:MT), with plans to create 2.8GW of capacity by 2028, which is estimated to add $0.4 billion to EBITDA. The company has already licensed 1.6GW of renewable energy in India, Brazil, and Argentina, with an additional 1.2GW in progress.
The company’s iron ore business in Liberia, which reached record exports of 10 million tons in 2025 and contributed $0.2 billion to EBITDA, is another important development sector. After an agreement with the Government of Liberia to extend operations until 2050, a new concentrator will likely ramp up to full capacity in 2026, enabling the expansion to 30 million tons capacity.
ArcelorMittal SA (NYSE:MT) is a leading steel and mining company that produces and sells steel products for industries like automotive, construction, and household appliances. The company is also involved in mining iron ore and metallurgical coal to supply its steelmaking operations
7. TotalEnergies SE (NYSE:TTE)
Forward P/E Ratio: 11.05
Number of Hedge Fund Holders: 22
TotalEnergies SE (NYSE:TTE) ranks among the best undervalued European stocks to buy now. TotalEnergies SE (NYSE:TTE) has been on a spree of partnerships and collaborations of late. The company, in collaboration with Tikehau Capital, announced on February 4 the launch of an equally-owned shared investment platform to build charging stations for electric vehicles in Belgium and the Netherlands. The partnership will be centered on developing charging infrastructure in crowded public places across both nations, assisting local authorities with their electric vehicle transition, while boosting TotalEnergies’ presence in the Benelux region.
Moreover, TotalEnergies SE (NYSE:TTE) announced on January 22 that it would supply paper maker SWM with 800 gigawatt-hours of renewable energy over a 10-year term. The arrangement would supply power to SWM’s three French facilities from TotalEnergies’ existing renewable production assets in France, totaling about 50 megawatts.
TotalEnergies SE (NYSE:TTE) is a global multi-energy company that produces and markets oil, biofuels, natural gas, renewables, and electricity.
6. Stellantis N.V. (NYSE:STLA)
Forward P/E Ratio: 5.55
Number of Hedge Fund Holders: 32
Stellantis N.V. (NYSE:STLA) ranks among the best undervalued European stocks to buy now. On February 3, Morgan Stanley lowered Stellantis N.V. (NYSE:STLA) from Overweight to Equalweight while lifting the price target to EUR9.20 from EUR8.50. The change comes after Morgan Stanley described Stellantis N.V. (NYSE:STLA) as “the European company lagging behind on investments, product pipeline, market share, margins, FCF, and leverage,” leading to lower earnings and less reliable balance sheet indicators compared to volume peers.
Even with these worries, the firm said that Stellantis N.V. (NYSE:STLA) has witnessed considerable underperformance compared to European automakers, and its product selection is improving gradually, which might lead to gains in the United States along with other markets.
The firm highlighted that Stellantis’ exposure to US markets provides a structural long-term benefit, as the market “should continue to be more protected from China competition for a while,” which Morgan Stanley characterized as its top priority in the volume area.
Stellantis N.V. (NYSE:STLA) designs, engineers, manufactures, distributes, and sells cars, light commercial vehicles, engines, transmission systems, and mobility services worldwide.
5. Amcor plc (NYSE:AMCR)
Forward P/E Ratio: 10.56
Number of Hedge Fund Holders: 34
Amcor plc (NYSE:AMCR) ranks among the best undervalued European stocks to buy now. Following Amcor plc (NYSE:AMCR)’s quarterly earnings report, Truist Securities reiterated its Buy rating and $60 price target for the company on February 5. Amcor plc (NYSE:AMCR) posted adjusted earnings per share of $0.86, which surpassed both Truist’s forecast of $0.79 and the Street average of $0.84.
During the period, the packaging manufacturer generated $55 million in synergies, exceeding the upper end of its targeted range of $50-55 million. These savings were mostly comprised of G&A headcount decreases and procurement efficiency, with $5 million attributed to financial advantages.
As the company improves spend and requirements across its combined supplier base after the Berry business merger, revenue synergies have reached over $100 million in annualized sales, a jump of over $30 million from the prior quarter.
Amcor plc (NYSE:AMCR) operates in packaging solutions for consumer and healthcare products. The company develops sustainable packaging in both flexible and rigid formats, using multiple types of materials.
4. Rio Tinto Group (NYSE:RIO)
Forward P/E Ratio: 11.86
Number of Hedge Fund Holders: 37
Rio Tinto Group (NYSE:RIO) ranks among the best undervalued European stocks to buy now. On January 23, Erste Group upgraded Rio Tinto Group (NYSE:RIO) from Hold to Buy, noting the mining company’s superior return on equity compared to its competitors. According to analyst Hans Engel, Rio Tinto’s sales would grow more strongly in 2026 than the year before, with copper production in Mongolia providing an “important contribution” towards this expansion.
The firm stated that silver production will rise in tandem with copper production, bolstering the company’s growth prospects. Rio Tinto Group (NYSE:RIO) also met its 2025 production targets for all commodities, with copper output reaching 883,000 tonnes, beating the upper end of the company’s projection range of 875,000 tonnes.
In addition, the company produced record quarterly iron ore output in Western Australia’s Pilbara region during the fourth quarter, up 4% from the same period in 2024.
Rio Tinto Group (NYSE:RIO) explores, mines, and processes mineral resources. Its operations are divided into the following business segments: Copper, Iron Ore, Aluminium, and Minerals.
3. GSK plc (NYSE:GSK)
Forward P/E Ratio: 11.07
Number of Hedge Fund Holders: 41
GSK plc (NYSE:GSK) ranks among the best undervalued European stocks to buy now. On February 4, GSK plc (NYSE:GSK) announced fourth-quarter earnings that outperformed analyst estimates in several important metrics. Earnings per share for the quarter came in at $0.6989, 9.58% more than the forecast of $0.6378. Revenue also surpassed forecasts, coming in at $11.81 billion versus $11.36 billion, for a 3.96% upside surprise.
Specialty Medicines was a fairly promising area, with 17% growth, while Oncology outperformed expectations, with sales up 43% from the same quarter last year.
GSK plc (NYSE:GSK) issued upbeat guidance for 2026, projecting 3-5% sales growth. The company forecasts core operating profit and earnings per share to rise even faster, at 7-9%, implying further margin expansion. The company’s management stated that oncology and respiratory medicines, as well as expanding pipeline assets, will be the main drivers of future growth.
GSK plc (NYSE:GSK) is a UK-based global biopharmaceutical company that researches, develops, and sells medicines and vaccines for infectious diseases, HIV, respiratory conditions, cancer, and immune-related disorders.
2. Shell plc (NYSE:SHEL)
Forward P/E Ratio: 9.91
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL) ranks among the best undervalued European stocks to buy now. On February 5, Shell plc (NYSE:SHEL) announced an EPS of $1.12, which was 8.94% lower than the expected $1.23. However, the company exceeded revenue forecasts, posting $64.09 billion vs the prediction of $62.87 billion, marking a 1.94% surprise.
In terms of operational performance, Shell plc (NYSE:SHEL) produced 1.9 million barrels of oil equivalent per day (mmboe/d) in Q4 2025, which was in line with projections, with an outlook of 1.7 to 1.9 mmboe/d in the first quarter of 2026.
The company’s overall performance in 2025 was strong, with adjusted earnings of $18.5 billion and cash flow from operations approaching $43 billion. The company maintained a solid return on capital employed (ROACE) of 9.4% while making significant shareholder dividends.
The same day, Shell plc (NYSE:SHEL) announced a $3.5 billion share buyback program that will span around three months. The program is meant to lower the oil and gas company’s issued share capital by cancelling all repurchased shares.
Shell plc (NYSE:SHEL) is an integrated energy company with operations spanning exploration, production, refining, marketing, and chemical manufacturing, alongside growing investments in biofuels and hydrogen.
1. Chubb Limited (NYSE:CB)
Forward P/E Ratio: 11.48
Number of Hedge Fund Holders: 68
Chubb Limited (NYSE:CB) ranks among the best undervalued European stocks to buy now. On February 4, Citizens reiterated its Market Outperform rating for Chubb Limited (NYSE:CB) with a $350 price target. The firm noted Chubb’s considerable presence in global markets as a significant bonus, predicting stronger long-term growth than rivals due to the company’s position in rising regions such as Asia and Latin America.
The firm also cited Chubb’s expanded ownership position in Huatai Insurance Group in China, which topped 85.5% back in March 2024, as an encouraging step for the insurer’s global growth plan.
Moreover, Citizens highlighted Chubb’s recent introduction of a fully digital life insurance service in cooperation with Nubank in Brazil as proof of the company’s focus on driving growth in emerging markets.
Chubb Limited (NYSE:CB) provides insurance and reinsurance products. The company has six segments: North America Commercial P&C Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance, and Life Insurance.
While we acknowledge the potential of CB 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 CB and that has 100x upside potential, check out our report about this cheapest AI stock.
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