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.
8. ING Groep N.V. (NYSE:ING)
Year-to-Date Performance: 35.41%
Number of Hedge Fund Holders: 14
ING Groep N.V. (NYSE:ING) ranks among the best-performing European stocks to invest in. On September 2, Morgan Stanley named ING Groep N.V. (NYSE:ING) a Top Pick, upgrading the Dutch bank from Equalweight to Overweight and increasing its price target from EUR23.50 to EUR25.40.
Morgan Stanley estimates that by reducing savings rates and maintaining volume growth, ING Groep N.V. (NYSE:ING) will counteract the roughly €300 million in headwinds from its replicating portfolio next year, resulting in net interest income (NII) growth in 2026.
The firm remains ahead of the curve on fee income, citing several triggers for ING Groep N.V. (NYSE:ING) to create favorable surprises in this area, and sees its next share buyback in Q3 as the stock’s immediate driver.
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.
7. TotalEnergies SE (NYSE:TTE)
Year-to-Date Performance: 16.96%
Number of Hedge Fund Holders: 23
TotalEnergies SE (NYSE:TTE) ranks among the best-performing European stocks to invest in. On September 2, TotalEnergies SE (NYSE:TTE) and South Atlantic Petroleum signed a Production Sharing Contract for two offshore exploration licenses in Nigeria. The licenses, which encompass roughly 2,000 square kilometers in the West Delta basin, were given out as part of Nigeria’s 2024 Exploration Round and were administered through the Nigerian Upstream Petroleum Regulatory Commission.
Nigeria has been a part of TotalEnergies’ hydrocarbon output for over 60 years, with the country contributing roughly 209,000 barrels of oil equivalent per day in 2024.
According to TotalEnergies SE (NYSE:TTE), the recently purchased blocks have “promising” “drill-ready and high impact prospects” in its primary areas of competence. The company will own and operate 80% of the blocks, while South Atlantic Petroleum will hold the remaining 20%.
A global integrated energy company, TotalEnergies SE (NYSE:TTE) generates electricity, renewable energy, oil, biofuels, and natural gas and green gases.
6. BeOne Medicines Ltd. (NASDAQ:ONC)
Year-to-Date Performance: 100.69%
Number of Hedge Fund Holders: 28
BeOne Medicines Ltd. (NASDAQ:ONC) ranks among the best-performing European stocks to invest in. On August 29, BeOne Medicines Ltd. (NASDAQ:ONC) stated that the Phase 1/2 research of sonrotoclax had reached its main objective of overall response rate in patients with relapsed or refractory mantle cell lymphoma.
The trial showed clinically relevant responses in the extensively pretreated patient category. Promising outcomes were also observed for secondary goals, including progression-free survival, response duration, and a complete response rate.
BeOne Medicines Ltd. (NASDAQ:ONC) plans on sending the data for possible approval to the U.S. Food and Drug Administration as well as other international regulatory agencies. The company has already filed new drug applications with China’s National Medical Products Administration for sonrotoclax in chronic lymphocytic leukemia and relapsed or refractory mantle cell lymphoma.
BeOne Medicines Ltd. (NASDAQ:ONC) is a global biotechnology company that specializes in oncology medicines, particularly for blood cancers and solid tumors.
5. Allegion plc (NYSE:ALLE)
Year-to-Date Performance: 33.65%
Number of Hedge Fund Holders: 29
Allegion plc (NYSE:ALLE) ranks among the best-performing European stocks to invest in. On August 27, Mizuho retained its Neutral rating on Allegion plc (NYSE:ALLE) while raising its price target to $170 from $155. The raise comes after Mizuho and Allegion CEO John Stone and VP of Investor Relations Josh Pokrzywinski met in Boston. During those discussions, management consistently delivered a message about end-markets that were characterized as “resilient albeit tough/mixed.”
Mizuho reported that Allegion plc (NYSE:ALLE) has shown increased operational rigor as it manages growth and tariffs while sustaining a constant stream of completed acquisitions.
The firm pointed out that improved deal teams, stronger M&A intent, and a favorable buyers’ market have all contributed to higher deal velocity for the company.
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.
4. AstraZeneca PLC (NASDAQ:AZN)
Year-to-Date Performance: 24.01%
Number of Hedge Fund Holders: 48
AstraZeneca PLC (NASDAQ:AZN) ranks among the best-performing European stocks to invest in. Following the release of Phase 3 trial data for baxdrostat at ESC 2025, Goldman Sachs reaffirmed its Conviction Buy rating on AstraZeneca PLC (NASDAQ:AZN) on September 1. The Phase 3 BaxHTN trial found that baxdrostat reduced seated systolic blood pressure (SBP) in a dose-dependent, placebo-adjusted manner at week 12.
According to safety data, both the 2 mg and 1 mg doses had confirmed rates of moderate to severe hyperkalemia of 1.1%, while the placebo had a rate of 0%. Compared to 1.9% with a placebo, discontinuation owing to adverse reactions occurred at rates of 4.5% for the 2 mg dose and 2.7% for the 1 mg dose.
Management stated during its conference call that baxdrostat did not have any clinically significant drug-drug interactions, which is a significant finding for the treatment’s possible use in clinical trials.
AstraZeneca PLC (NASDAQ:AZN) is a prominent player in the pharmaceutical sector, especially for its work on rare disease and cancer treatments. The company has a strong reputation in the healthcare industry thanks to its history of medical advancements.
3. Amer Sports, Inc. (NYSE:AS)
Year-to-Date Performance: 26.72%
Number of Hedge Fund Holders: 61
On August 27, HSBC raised its price target for Amer Sports, Inc. (NYSE:AS) from $38 to $50 and upgraded the company from Hold to Buy. After downgrading the shares late last year, HSBC has now admitted that it “underestimated the growth compounding nature” of Amer Sports’ portfolio.
Although the Arc’teryx brand and the Greater China market used to be the main drivers of Amer Sports’ equity narrative, HSBC notes that the company’s formula for success is now spreading to other portfolio areas and Asian markets.
In particular, HSBC emphasized Salomon soft products, which showed robust sequential acceleration the past three years with low-double-digit sales CAGR in the Outdoor Performance category.
Based in Helsinki, Finland, Amer Sports, Inc. (NYSE:AS) is a multinational athletic goods corporation. The company owns a portfolio of brands, including Atomic, Arc’teryx, Armada, Enve Composites, Peak Performance, Salomon, and Wilson.
2. Johnson Controls International plc (NYSE:JCI)
Year-to-Date Performance: 34.55%
Number of Hedge Fund Holders: 75
Johnson Controls International (NYSE:JCI) ranks among the best-performing European stocks to invest in. JPMorgan reiterated its Overweight rating and $105 price target for Johnson Controls International (NYSE:JCI) on August 27 after visiting the company’s headquarters. The bank stated that it felt more confident in Johnson Controls’ ability to grow its margins, which it considers to be largely unaffected by the stable volume environment at the moment.
JPMorgan highlighted that the new CEO and management team have been indicating that steps have already been taken as part of a multi-year productivity and process optimization program. The firm emphasized visibility in many operational areas, including functional overhead, manufacturing, and service operations.
According to JPMorgan, there was “perhaps a bit less opportunity” in installation activity than predicted, but these improvements are expected to more than make up for it.
Johnson Controls International (NYSE:JCI) designs, produces, commissions, and retrofits building products and systems in the United States, Europe, Asia Pacific, and beyond.
1. Spotify Technology S.A. (NYSE:SPOT)
Year-to-Date Performance: 54.48%
Number of Hedge Fund Holders: 111
Spotify Technology S.A. (NYSE:SPOT) ranks among the best-performing European stocks to invest in. On September 3, Guggenheim reaffirmed its $850 price target and Buy rating on Spotify Technology S.A. (NYSE:SPOT). Along with the company’s proven pricing power in the audio streaming market, the firm expressed confidence in Spotify’s product development plans, which include messaging tools, DJ mix functionality, and Instagram music previews.
Based on a thorough examination of premium ARPU assumptions by market and strategy, Guggenheim predicts that Spotify’s 2026 performance will surpass current consensus projections, generating the possibility of sustained growth and additional share price gain.
The firm’s forecast includes a gross margin analysis that accounts for non-music revenue distributions as well as additional expenses for audiobook and video podcast material.
Spotify Technology S.A. (NYSE:SPOT), a leader in digital music streaming, is renowned for revolutionizing the music industry.
While we acknowledge the potential of SPOT 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 SPOT and that has 100x upside potential, check out our report about this cheapest AI stock.
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