In this article, we will take a look at the 5 Oversold European Stocks to Buy. For a deeper discussion and an expanded list, please see 7 Oversold European Stocks to Buy.
5. Diageo plc (NYSE:DEO)
Diageo plc (NYSE:DEO) ranks among the oversold European stocks to buy. On March 3, TD Cowen maintained its Hold rating on Diageo plc (NYSE:DEO) but reduced its price target to $88. TD Cowen reduced its organic operating profit growth estimate to flat and its organic sales forecast to -2.7% for the fiscal year 2026.
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Diageo plc (NYSE:DEO) announced a cut in its annual sales projection and dividend, citing sluggish demand in the US market. The company reported a significant fall in U.S. alcohol sales for the six months ended December 31, mostly affecting its famous tequila brands Don Julio and Casamigos.
Moreover, Diageo plc (NYSE:DEO) has faced headwinds in North America and China, overshadowing sales gains in Europe and Latin America. Despite these regional challenges, the company has maintained its cash production target of GBP 3 billion for the fiscal year 2026.
Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company headquartered in London, England. Founded in 1997, the company has grown into one of the world’s largest producers of spirits and beer.
4. BeOne Medicines AG (NASDAQ:ONC)
BeOne Medicines AG (NASDAQ:ONC) ranks among the oversold European stocks to buy. On March 16, Jefferies lowered BeOne Medicines AG (NASDAQ:ONC) to Hold from Buy and reduced its price target to $290 from $420. According to analyst Faisal Khurshid, Brukinsa continues to be one of the strongest assets in hematology and is predicted to continue to lead in CLL for an extended period.
According to Khurshid, leadership in CLL looks to be firmly established, though the next growth bases, BTK, CDAC, and Sonro, are slow to develop. The analyst noted that BeOne Medicines AG (NASDAQ:ONC) is a quality company, but it is not an appealing buy at its current price.
Meanwhile, on February 27, Truist Securities boosted its price target for BeOne Medicines AG (NASDAQ:ONC) to $412 from $400, retaining a Buy rating on the company’s shares. Truist stated that the forecast for Brukinsa indicates healthy growth, regardless of any major label expansion. Additionally, in a one-on-one meeting with the firm, management stated that the guidance already recognizes increasing BTK rivalry.
BeOne Medicines AG (NASDAQ:ONC) is a biotechnology company focused on discovering, developing, and commercializing innovative, affordable oncology treatments. It is known for products such as Brukinsa and Tevimbra and utilizes a worldwide network for R&D and manufacturing.
3. Allegion plc (NYSE:ALLE)
Allegion plc (NYSE:ALLE) ranks among the oversold European stocks to buy. On March 18, Allegion plc (NYSE:ALLE) presented its strategy at the JPMorgan Industrials Conference 2026, emphasizing its shift toward security solutions based on electronics and software.
The company generates over $4 billion in revenue, with solid 25% EBITDA margins, with its electronics segment now accounting for more than 30% of total revenue, indicating a key growth driver. Allegion plc (NYSE:ALLE) also has a strong aftermarket sector, which accounts for nearly half of overall revenue.
The company indicated that it is shifting from mechanical hardware to electromechanical solutions, hastening product development, and leveraging automation and AI to boost efficiency.
Looking ahead, Allegion plc (NYSE:ALLE) expects high single-digit to low double-digit growth in electronics, while the residential market could shrink slightly by 2026, with continued R&D investment sustaining long-term growth.
Allegion plc (NYSE:ALLE) is a global security solutions supplier that focuses on locks, door closers, exit devices, electronic access control systems, and steel doors. It operates in more than 120 countries through two divisions: Allegion Americas and Allegion International.
2. Unilever PLC (NYSE:UL)
Unilever PLC (NYSE:UL) ranks among the oversold European stocks to buy. On March 13, TD Cowen reiterated its Buy rating for Unilever PLC (NYSE:UL), with a price target of GBP58. According to the firm, when the market acknowledges Unilever’s volume growth, its valuation multiple will approach that of its household and personal care counterparts in the US.
TD Cowen stated that CEO Fernando Fernandez has developed a culture that rewards performance and changed the business from a regional model to a category-led approach, with executives in the company’s top 24 markets taking full financial responsibility.
By disposing of ice cream and acquiring businesses like Liquid I.V. and Nutrafol, Unilever has already expanded the portfolio’s exposure to high-growth markets. While peers struggle to surpass 0%, TD Cowen anticipates Unilever PLC (NYSE:UL) to achieve 2% volume growth in 2026.
Unilever PLC (NYSE:UL) is a British multinational fast-moving consumer goods corporation formed through the combination of British soap manufacturer Lever Brothers and Dutch margarine producer Margarine Unie.
1. SAP SE (NYSE:SAP)
SAP SE (NYSE:SAP) ranks among the oversold European stocks to buy. JPMorgan downgraded SAP SE (NYSE:SAP) from Overweight to Neutral on March 24, citing a tougher near-term outlook as the company’s cloud backlog continues to expand slowly and strategic changes add uncertainty. JPMorgan analysts stated that their prior optimism in SAP was founded on “accelerating revenue growth and significant margin expansion,” but given the company’s numerous challenges, “the picture for performance has shifted.”
The slowdown in SAP’s current cloud backlog (CCB) is a major worry, and the firm anticipates that this trend will continue as the base of transferred clients grows. JPMorgan identified a possible change in SAP’s business model toward a consumption- or outcome-based framework, in addition to changes in backlog patterns.
The firm also emphasized the competitiveness in the AI agent layer, citing the rapid growth of large language model providers and rising peer investment, which might put pressure on margins and spur more M&A activity.
SAP SE (NYSE:SAP) is an enterprise software company based in Germany. It develops and provides both on-premises and cloud-based solutions to assist companies in managing human resources, supply chain management, finance, and customer experience.
While we acknowledge the potential of SAP 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 SAP and that has 100x upside potential, check out our report about the cheapest AI stock.
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