In this article, we will take a look at the 9 Best Performing European Stocks to Invest in.
With share values reaching their highest points since the global financial crisis, European banks have experienced a boom this year. While optimism about the European economy and comparatively low share prices have attracted investors to the market, a period of consistently increasing interest rates has boosted revenues at several of the major lenders.
As investors seek value amid newfound enthusiasm for European assets, the formerly neglected stock markets in Southern Europe are outperforming those in the rest of the continent. The equity indices of Greece, Italy, and Spain, which were at the center of the region’s financial crisis over ten years ago, have outperformed the pan-continental Stoxx Europe 600 index this year, beating their larger counterparts in Germany and France.
However, it appears that France is facing administrative challenges. Following President Emmanuel Macron’s September 9 appointment of loyalist and former defense minister Sebastien Lecornu as prime minister, the fifth in less than two years, the CAC 40 increased by 0.15%.
Investors are awaiting Fitch’s decision on the country’s credit rating on September 12 as recent governments have found it difficult to agree on strategies to curb debt-fueled fiscal spending. However, S&P Global states that the appointment of a new French prime minister will not significantly address the nation’s financial issues and unstable political climate.
Our Methodology
For this list, we used stock screeners and identified European stocks that were popular among elite hedge funds. We then checked their year-to-date performance and selected the best-performing stocks from our initial pool. The names on this list appear in ascending order of their favor among hedge funds, as of Q2 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
9. Eni S.p.A (NYSE:E)
Year-to-Date Performance: 28%
Number of Hedge Fund Holders: 6
Eni S.p.A (NYSE:E) ranks among the best-performing European stocks to invest in. On September 2, RBC Capital downgraded Eni S.p.A (NYSE:E) from Outperform to Sector Perform, with a EUR17 price target. The downgrade comes after the shares of the Italian energy giant experienced a period of solid performance, aided by a number of recent corporate transactions.
Although Eni’s balance sheet has remained robust as a result of these transactions, RBC Capital stated the stock is “due a breather after a strong run.” According to the firm, Eni’s energy transition plan continues to be praised by the market, appreciating it more than it did when it was first revealed.
Eni S.p.A (NYSE:E) is an Italian energy conglomerate based in Rome. Considered to be one of the seven supermajor oil companies in the world, the company has operations in 66 countries across the globe.
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