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How to Trade & Invest in the European Markets - The Best European Stocks as of February 2024

31 minutes
intermediate
European Markets: Best Stocks & ETFs
Cristian Cochintu
Cristian Cochintu
16 November 2023

European markets can diversify any portfolio, while also offering access to some of the most exciting companies in the world. Read on to learn how to trade in European stocks and ETFs and discover some of the best European stocks to consider now or put on your watchlist for 2024.

European stocks have been the key story in the global equity markets since early 2022 when the interest rate shock started, and inflation turned out to be higher for longer.  

European stocks are not only performing better than US stocks, but they are also considerably more attractively valued, with a P/E ratio of 13.2x as opposed to 18.5x for US stocks. Despite all the excitement around AI, earnings projections in Europe have increased more quickly in 2024 than in the US.

How to Trade and Invest in European Stocks – Quick Guide

  • Choose the European shares you want to buy – European markets are the home to many well-known international companies, including these blue-chip stocks:
  • Define your strategy – Trading lets you speculate on the price movement; dealing lets you take direct ownership of the shares of stocks and funds.  
  • Take your position – Create an account with CAPEX.com to start investing in the Asian markets.  

     

Why to Consider European Stocks?        

Due to rising gasoline prices for individuals and companies brought on by Russia's sanctions and the invasion of Ukraine, Europe is facing a time of economic stagnation. This makes an inflationary situation worse that resulted from post-pandemic demand colliding with broken supply systems. The European Central Bank is now trying to reduce inflation and temper demand by hiking borrowing prices, which is fuelling concerns about a slowdown.  

However, we think that one can have a favorable outlook for European equities without also having a positive outlook for the region's short-term economic prospects. Experts see three reasons to consider sticking with European stocks: 

1. Valuation

BlackRock believes that stock prices and the difference in value between European and US stocks already reflect the near-term economic doldrums. Europe is vulnerable while the war rages because of its reliance on Russian energy supplies. However, European market valuations are currently below their long-term average, while historically speaking, U.S. stocks look to be far more expensive.

For investors looking to take advantage of recent market volatility and get exposure to long-term structural trends, such as the move towards a net-zero future, they think European stocks currently offer good value. 

2. Short-term stability

Many businesses in Europe possess the qualities we believe are essential for enduring times of inflation and slower economic development. Regardless of the state of the economy, experts think it's critical to invest in high-quality European stocks that are regularly growing their earnings, cash flow, and dividends, have a significant market share, and are highly profitable.

Dividends  

In the absence of significant increases in European stock prices, analysts view dividends as a crucial source of return. In fact, over 70% of European businesses said that they will restore or raise dividends after making historic reductions during the Covid crisis. Investors should search for established, cash-generating businesses with solid balance sheets, stable end markets, and a track record of proving their business strategies. These businesses are present in many industries, but choosing the right one is crucial. In this context, experts especially support the European healthcare industry in researching undervalued European stocks.

Healthcare

Because medical care is seen as a necessity, healthcare companies have long been thought of as "defensive" equities, where success isn't connected to economic conditions. Europe is home to several of the top healthcare corporations in the world. Investors should seek out businesses that have a history of strong sales growth during previous economic downturns, have a large order backlog and expertise that is difficult to replicate, invest in innovation to increase market share, and seem well-positioned to benefit from post-COVID trends like laboratory automation, a greater emphasis on consumer healthcare, and the demand for novel vaccines.

3. Long-term opportunities

Numerous "best-in-class" businesses that might be well-positioned to assist international governments in reaching their net-zero emissions ambitions are based in Europe. The EU wants to achieve net-zero emissions by 2050 and a reduction of 55% in greenhouse gas emissions from 1990 levels by 2030. This policy is now much more urgent because of the conflict in Ukraine.

Energy innovation 

Investors seek companies that offer innovative solutions to the energy crisis and the drive to a net-zero future, such as the production of “green” hydrogen – hydrogen production powered by renewable electricity – that can replace fossil fuels in industrial manufacturing and be used to power trucks. Experts also like the makers of semiconductor manufacturing equipment essential to the shift to electric vehicles.

Energy efficiency 

Europe uses 40% of its energy in buildings, so a large portion of the €1 trillion "green deal" funding from the EU may go towards this sector. Thus, investors should search for businesses that can lower the energy bill—manufacturers of heat pumps, windows, and insulation, to mention a few.

Renewable energy growing 

By 2030, the EU wants to treble its usage of wind and solar energy, saving 170 billion cubic meters of gas. Those that directly produce solar and wind energy stand to gain. However, the availability of raw resources like copper is also necessary for this process, as well as for electrification and digitization more broadly.

Best European Stocks February 2024

Investors are spoilt for choice when it comes to opportunities in the European stock market. Follow our five-step plan to get started and discover some of the most popular European shares available, including their costs.

Please note, our top European stocks are picked not necessarily the best by size or any other singular factor, but are picked based on analysts' coverage, valuation, market capitalization, dividend pay-outs, and more.

The European Stock Stars of 2023 

While the US equity market is driven by the technology and healthcare sector, the European equity market is more diversified across consumer sectors, healthcare, financials, and energy.

Three of the best European stocks in 2023 are within the roaring luxury theme, led by the French giant LVMH which has been the preferred way to express a positive view on the Chinese reopening. Outside luxury stocks, there are three healthcare stocks (Novo Nordisk, Novartis, and AstraZeneca) that have helped pull the main European stock index higher in 2023. Healthcare European stocks have high quality and defensive characteristics that are in high demand amid uncertainty over the economy and inflation. The procyclical boom in infrastructure, green transformation, and the de-risking of supply chains have benefitted industrial and semiconductor companies such as ASML, Siemens, and Schneider Electric.

On the top European stocks, we find banks such as HSBC and UniCredit. While there was a brief banking crisis due to the failure of Silicon Valley Bank it has failed to materialise into anything here in Europe except for the merger between UBS and Credit Suisse. European banks have been a positive story in 2023 with expanding net interest income and lower-than-expected loan loss provisions.  

Top European Stocks Listed on the Frankfurt Stock Exchange (Xetra)

Germany is the largest economy by Gross Domestic Product (GDP) in Europe, even though several financial markets of the country are smaller than those of neighboring France and the UK. It has been observed that retail investors in the country are often more hesitant to invest in stocks than in other European markets since Germany has a more generous government pension system than the rest of the world.    

Based on analysts' coverage, the Top 3 European stock picks from Germany are SAP, Deutsche Bank, and Siemens.

SAP

One of the few survivors of the Covid-19 pandemic was SAP. When billions of people were compelled to work remotely in August 2020, the stock price of the Germany-based software corporation surged to unprecedented levels.  

Best European Stocks Germany SAP
SAP's stock price dropped from late 2020 until the end of 2022 due to the pandemic holding down big projects and sales, but its renewed focus on cloud computing has helped to put it back on track. With a new all-time high expected in 2024, SAP continues to be one of the best European stocks to hold for the long term or trade for the short and medium term.

Other stocks

After troubles that have plagued it for years, Deutsche Bank (DB) had good news for investors with its latest quarterly earnings reports posting a few percent profit jump and promising more payout through dividends. These results demonstrate strong and sustained business growth momentum combined with continued cost discipline, said the bank’s chief executive. The actual extended consolidation following the 6-year downtrend (2014-2020) signals a potential trend reversal. For these reasons and not only, Deutsche Bank is seen as one of the undervalued European stocks for 2024.

Siemens is one of the best European companies for capital goods and proven track record of generating alpha in the last few decades. As one of the world's biggest producers of energy-efficient, resource-saving technologies, Siemens is a pioneer in infrastructure and energy solutions, automation, and software for industry. After correcting almost 30% in the second half of 2023, this top European stock seems well-positioned to reach new heights in 2024.

There are a lot of other notable European stocks listed on the main German Stock Exchange, covering different sectors:

You can trade German shares with derivatives or buy over 100 European stocks listed on the Xetra with an Invest Account.

     

Top European Stocks Listed on the Euronext Brussels Stock Exchange

In 2001, the Brussels Stock Exchange merged with the Paris Stock Exchange and the Amsterdam Stock Exchange, and the three financial centers created the Euronext market. Euronext thus became the first pan-European stock exchange for stocks and derivatives. Today, when you look up the price of a Belgium stock, it is mainly listed on Euronext Brussels.

Based on analysts' coverage, the Top 3 European stock picks from Belgium are Anheuser-Busch InBev, KBC, and Siemens.

Anheuser-Busch InBev

Bill Gates Foundation Trust bought 1.7 million shares of Anheuser-Busch InBev after the company experienced a few months of controversy and declining stock prices. Anheuser-Busch took a hit earlier in 2023 when Bud Light sales dipped following an Instagram ad campaign with a transgender actress. 

Best European Stocks Belgium ABInBev
However, analysts have grown increasingly optimistic about Anheuser-Busch's business outlook and now point to long-term earnings-per-share (EPS) growth nearing 11% annually. A couple of factors could be driving this. First, the company is seeing a strong global performance from its core brands, like Budweiser, Stella Artois, and Corona. Second, Anheuser-Busch is working to deleverage its balance sheet. The company has $73.8 billion in net debt, of which 96% is at a fixed interest rate and immune from rising rates.  

Other Stocks

With a historic dividend yield of 4.13%, KBC Groep NV shares are currently one of the best European dividend stocks to buy and hold for passive income investors. According to Zacks, valuation metrics show that KBC Group SA may be another undervalued European stock.

Engie SA is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in a few main financial European indices, including CAC 40 and Euronext 100. Operating in the fields of electricity generation and distribution, natural gas, nuclear, renewable energy, and petroleum, ENGIE is focused on delivering a progressively growing and sustainable dividend for shareholders. The annual dividend yield ratio is almost 10% and the company also rewards shareholder loyalty with a +10% bonus on the dividend. ENGIE is regularly included in the best European dividend stocks by experts and top websites.

Other top European stocks domiciled in Belgium you might consider are well-known names such as UCB, Solvay, and GBL with market caps over 10B, Ackermans & van Haaren, and Ageas. The major Belgium stocks are also those that make up the BEL 20 stock market index, as they are also the most liquid.  

You can trade the most popular Belgian shares with derivatives or buy over 20 European stocks listed on Euronext Brussels with an Invest Account.

     

Top European Stocks Listed on the Nasdaq Copenhagen Stock Exchange

Nordic stock exchanges have offered competitive returns. All Nordic markets have outperformed the European markets over a period of three and five years. In the five-year period, Danish stocks have achieved the best returns among European stocks.

Based on analysts' coverage, the Top 3 European stock picks from Denmark are Novo Nordisk, Carlsberg, and Coloplast.  

Novo Nordisk

Novo Nordisk’s purpose is to drive change to defeat diabetes and other serious chronic diseases such as obesity, and rare blood and rare endocrine diseases.

it shouldn't be surprising that shares of Novo Nordisk (NVO 0.60%), the pharmaceutical company behind Ozempic and Wegovy, have done well. The shares gained more than 35% in 2023 and more than 200% over the past 3 years, which made NVO one of the best European stocks this decade. Novo Nordisk was included in the Best Stocks to Buy Now updated at the beginning of the year.

Best European Stocks Danish NovoNordisk
Ozempic is approved for treating diabetes and received FDA approval in 2017, while Wegovy is approved since 2021 for chronic weight management. Novo Nordisk has had accelerated revenue and earnings growth over the past several years, primarily due to these drugs' success, becoming one of the best European stocks to buy today for the long term, according to experts.

Other Top Danish Stocks

Coloplast develops products and services that make life easier for people with very personal and private medical conditions. This is called intimate health care. Business includes Ostomy Care, Continence Care, Wound & Skin Care, Interventional Urology, and Voice & Respiratory Care.

Carlsberg's CEO was satisfied with the company’s performance in the last quarters with strong volume growth in Asia and many European markets, which along with a strong price/mix development led to revenue growth. The company raised its guidance and now expects organic growth in operating profit to be at the level of 10 – 12 %.

All three European stocks from Denmark are high-quality stocks. Carlsberg has the lowest risk and highest dividend score. Novo Nordisk offers quality growth. Coloplast has increased its dividend for 13 years in a row and competes for the best European dividend stocks in 2024.

Some other top European stocks listed on the main Copenhagen Exchange, include the transportation company Moeller-Maersk, jeweller Pandora, and renewable energy stock Vestas Wind.

You can trade up to 20 European stocks listed on the Nasdaq Copenhagen with derivatives.

     

Top European Stocks Listed on the Euronext Paris stock exchange

French stocks are the breakout stars of the European markets in 2023, fuelled by the relentless momentum behind luxury goods producers, pushing the CAC40 index near record highs.

Based on analysts' coverage, the Top 3 European stock picks from France are LVMH, Hermes, and Orange.

LVMH

LVMH is the world’s largest luxury company with an expansive portfolio of renowned brands, including Louis Vuitton, Christian Dior, Loewe, Dom Perignon, and Tag Heuer. LVMH has been a star performer over the past five years in the European markets, growing from less than $50M to the past year's record performance of $500, even while being forced to recover from the brutal slowdown in 2020 brought on by the coronavirus pandemic.  

Best European Stocks French LVMH
LVMH seems to have worked out whatever hiccups it's encountered in 2022, and with its target demographic still spending and China's economy reopening, the luxury goods retailer looks well positioned to capitalize on greater spending on its goods and keep being one of the best European stocks in 2024 and beyond.  

Other stocks

If you love cheap stocks in an unloved transportation sector, then tire and rubber industry stocks could be for you. Michelin is one of the most significant European producers and has notably higher margins than smaller players such as Goodyear and Sumitomo. A combination of steady, if unexciting, long-term revenue growth prospects, plus some margin expansion through ongoing consolidation and cost-cutting, could generate excellent returns for investors over the long term.    

French telecom company Orange S.A. (ORAN) is a low-priced stock with a high dividend yield. Orange has a strong market position in France and has been deploying fiber networks in major cities to tackle the rising competition in the local market. According to Zacks' momentum style score, Orange is one of the best European stocks set to rise in the near term.

There are a lot of other notable European stocks listed on the Euronext Paris, including banks like Societe Generale and BNP Paribas, or high-dividend European stocks like Sanofi and Total SE. Probably the best-represented industry among the European markets is Goods & Services with top stocks like Carrefour, Christian Dior, Danone, Hermes, Renault, Loreal, and many others.

You can trade French shares with derivatives or buy over 100 European stocks listed on the Euronext Paris with an Invest Account.

     

Top European Stocks Listed on the Euronext Amsterdam Stock Exchange

The Amsterdam Stock Exchange was created centuries ago and is still the oldest stock exchange in the world.

Based on analysts' coverage, the Top 3 European stock picks from the Netherlands are ASML, ING, and Abhold Delhaize.

ASML

This Dutch semiconductor company has been one of the best European stocks to hold in 2023 – with its stock price growing by more than 20%. This is largely due to the global chip shortage, which has seen some of the world’s leading technology companies turn to ASML to keep up with demand.

Best European Stocks Dutch ASML
Chips are used in everything from smartphones and cars to industrial equipment, so demand is expected to remain high. ASML has proven its ability to scale up quickly when needed. However, there is plenty of global competition in this sector, and as supply chains stabilize, ASML’s value could stutter.

Other stocks

ING Groep N.V. (ING) is a market leader in Belgium, Luxembourg, and the Netherlands and considers Poland, Romania, and Turkey as growth markets. Analysts consider ING as one of the best European stocks as it provides a healthy forward dividend yield of 11% as of Q4 2023.  

With strong fundamentals, Koninklijke Ahold Delhaize NV Is considered a good pick for value investors seeking inflation-resilient stocks. The company profits from a strong US Dollar as it gets over 60% of its revenue from the US.

Other Dutch stocks include the likes of Heineken, Shell, and ABN Amro, and some of the best European dividend stocks such as Unilever and Koninklijke Philips N.V. (PHG) with Forward Dividend Yields of 4,3% and 6%. 

You can trade Dutch shares with derivatives or buy up to 40 European stocks listed on the Euronext Amsterdam with an Invest Account.

     

Top European Stocks Listed on the Milan Stock Exchange

Italy’s leading FTSE MIB index has returned around 25% in the first 7 months of 2023, the best performance of the top 5 European markets. But domestically focused companies in sectors such as consumers and industrials have been hurt by an aging population, debt at over 100% of GDP, and two decades of near-zero economic growth that was only briefly interrupted by a post-COVID rebound.  

That has left Italian equities overall more cheaply valued than even battered UK or US shares, which are trading at a 33-50% discount to global peers, the deepest discount in 35 years, according to Reuters.

Based on analysts' coverage, the Top 3 European stock picks from Italy are Ferrari, Stellantis, and Eni.

Ferarri

Tesla must sell 10 vehicles to generate the same profit as Ferrari gets from one. Despite manufacturing in Italy, a much more expensive place to make vehicles than China and elsewhere, Ferrari still made seven cents more per dollar of sales than Tesla.   

Best European Stocks Italian Ferrari
After another exceptional quarter with double-digit growth across the main parameters (EBITDA margin at 37.6% reaching a new high and net profit up to Euro 297 million), Ferrari's CEO said: "Our order book already extends into 2025 with an award-winning product portfolio. We have decided to reopen orders for the Purosangue, suspended due to initial unprecedented demand, and launched the Roma Spider to further enrich our offer. We are on track with our electrification journey on the development of both sports cars and infrastructures in Maranello”.

Should Investors RACE to Buy Ferrari Stock in 2024? Time will tell us.

Other stocks

Stellantis N.V. (STLA) is one of the biggest car companies in the world. It has numerous well-known car brands in its portfolio, such as Alfa Romeo, Fiat, and Dodge. It is another company whose shares are rated a Strong Buy on average. It is among several car companies that are dealing with tough union negotiations and is considered one of the best undervalued European stocks in 2024.

Eni S.p.A. (E) engages in the exploration, development, and production of crude oil and natural gas. It is rated as one of the best Italian stocks to invest in. The firm is considered one of the seven super major oil companies in the world. It employs more than 31,000 people and one of the major shareholders of the company is The Vanguard Group. Eni operates in 69 countries.

There are a lot of other notable European stocks listed on the Euronext Paris, including luxury goods companies that have driven Italy’s stock market higher such as Moncler (MONC), Salvatore Ferragamo, Davide Campari-Milano (CPR), leather and fabric upholstered furniture producer Natuzzi, as well as bank and insurance companies like Intesa Sao Paolo, UniCredit, and Generali. Those interested in penny stocks can look at Juventus shares.  

You can trade tens of Italian shares with derivatives or buy European stocks listed on the Euronext Amsterdam with an Invest Account.

     

Top European Stocks Listed on the Euronext Lisbon Stock Exchange

Portugal is the oldest nation-state on the Iberian Peninsula and one of the oldest in Europe and, as such, has a rich and diverse culture and history.

Based on analysts' coverage, the Top 3 European stocks from Portugal are CTT, EDP, and Galp.

CTT

Correios De Portugal operates through Mail, Express & Parcels, Financial Services, and Banco CTT segments. This European stock is a cheap defensive investment idea. Though its business of postal and courier services may not be too fashionable with favorable megatrends, its cash flow is robust, and its balance sheet is healthy.

Best European Stocks Portuguese CTT
With its earnings expected to grow by over 25% over the next couple of years and secure dividend yield, the company as a potential stock investment can deliver for the investors. The stock is currently seen as one of the undervalued European stocks for 2024.

Other stocks

EDP – Energias de Portugal is one of the largest renewable energy companies in Europe, with a strong track record of stable dividends due to its diversified portfolio and long-term contracts.

Galp Energia is a leading integrated energy company with a focus on oil and gas exploration, production, refining, and distribution. Galp has a history of consistent dividend payments supported by its solid financial position.

Both companies are considered among the best European dividend stocks for , with potential for both capital appreciation and consistent dividend payouts.

Investors can consider many other major Portuguese companies, besides renewable energy providers, including the catering company Ibersol, Jerónimo Martins, a multinational retail group operating in Portugal, Poland, and Colombia, or the multi-industry holding company Sonae Capital.

You can trade the top Portuguese shares with derivatives.

     

Top European Stocks Listed on the Madrid Stock Exchange

Value stocks have suffered since the start of 2023 amid inflation an overall market euphoria that has favored growth stocks, mainly tech stocks driven by generative AI stocks and Artificial Intelligence mega-trend in general. But that could change if markets return to “rationality” and dominant tech stocks lose their traction.  

Among European stock markets, the Spanish market is probably the best to identify stocks trading under $5 with low PE ratios, even under 20.  

Based on analysts' coverage, the Top 3 European stocks from Spain are Banco Santander, Inditex, and Iberdrola.

Banco Santander

Banco Santander, S.A. is a Spanish bank with corporate, investment banking, retail, and other business divisions. It is the largest lender in Spain, and the firm was out with some good news for investors in October as it confirmed that it was on track to meet its 2023 income targets on the back of higher interest rates.

Best European Stocks Spanish Santander
It is listed among the best value penny stocks to buy now by Yahoo Finance, after the company posted strong Q2 results and said it’s "well on track" to achieving 2023 financial targets.

with a P/E ratio still below 6 after the +50% share price increase, Santander is considered one of the best European penny stocks for 2024.

Other stocks

Inditex is the only Spanish stock with a market cap above 100B and one of the largest fashion companies in Europe and worldwide. Its business model attains a distinctive market position that presents significant growth opportunities moving forward. Overall, analysts at JP Morgan and Goldman Sachs have rated the stock as Moderate Buy and believe it could be a good addition for investors in the long run.

Iberdrola is one of the largest energy companies in Europe, and its stock prices have risen steadily over the past decade and outperformed other global stock markets, including Asian markets. In addition, Iberdrola has a long experience that has paid constant dividends and has constantly expanded its operations in the renewable energy sector, which is expected to continue growing in the coming years.

Investors can consider many high-value Spanish stocks, including Endesa, one of the largest energy companies in Spain, high-yield dividend stock Repsol with extensive experience in the oil and gas sector, or Siemens Gamesa, one of the world's leading wind and solar energy companies.

You can trade tens of Spanish shares with derivatives or buy European stocks listed on the Madrid Stock Exchange with an Invest Account.

     

Top European Stocks Listed on the Nasdaq Stockholm Exchange

Swedish stocks are attractive due to their potential profits and exciting opportunities. The Swedish Financial Supervisory Authority (SFSA), a reputable Tier-1 regulator, oversees the well-regulated financial market. Swedish companies adhere strictly to strong corporate governance and provide investors with a dependable means of being exposed to local, European markets, and international as well.

Based on analysts' coverage, the Top 3 European stocks picked from Sweden are Boliden, Assa Abloy, and SSAB AB.

Boliden

Boliden is an almost hundred-year-old mining company that owns mines and smelters. Boliden’s vision is to be the most climate-friendly and respected metal provider in the world. The company mines, processes, and transports valuable and useful metals such as zinc, copper, nickel, cobalt, lead, silver, and gold for industrial needs. The company has benefited in 2022 from high metal prices.

Best European Stocks Swedish Boliden

Boliden has its own electricity production. Around 80% of electricity consumption is secured for the next two years (2023-2024).

Other Top Swedish Stocks

Assa Abloy is one of the most famous Swedish companies and Abloy’s locks are known all over the world. Assa Abloy operates in more than 70 countries and employs approximately 48,000 employees. Assa Abloy is a global leader in access solutions.

SSAB AB manufactures and distributes steel products in the United States, Sweden, Finland, Germany, Denmark, and other countries across the world. SSAB Special Steels provides quenched and tempered steels as well as hot-rolled advanced high-strength steel products. It caters to the industries of heavy transport, construction, automotive, industrial, construction machines, energy, material handling, and service centers.

TipRank's quantitative model gives high scores for these European stocks. Boliden has rather low valuation figures. Assa Abloy is perhaps the best quality industrial company in the Nordic countries, while SSAB is a top European stock in the basic materials sectors.

Other Swedish stocks include the likes of Volvo and some of the most popular goods and services in European stocks, such as H&M, Electrolux, and Husqvarna.

You can trade up to 40 top European stocks listed on the Nasdaq Stockholm with a Trade account.

     

Top European Stocks Listed on the Poland Exchange

Polish stocks are the world’s best-performing equity group in October 2023, after investors welcome the prospect of the former prime minister’s return. The financial sector outperformed the European markets, as a post-election boom in Polish stocks has turned them into the best-performing equity group in the first half of Q4 2023, defying a global sell-off. The WIG20 index soared up to 15%, even though it's made up of the country's heavyweight companies.

Based on analysts' coverage, the Top 3 European stocks from Poland are PEKAO Bank, PKN Orlen, and Orange Polska.

PEKAO Bank

Poland's second-biggest lender Pekao PEO.WA turned to profit in Q3 2023 after a loss a year earlier due to relief measures for mortgage payers. In 2022, its net profit was weighed down by the cost of a mortgage payment holiday scheme, introduced by the government to help homeowners whose monthly installments surged due to rising interest rates.  

Best European Stocks Polish PEKAO

Pekao Bank is considered one best European bank stocks, an undervalued sector according to analysts. European bank shares are sporting a dividend yield of almost 8%, making them cheaper on this basis than during the 2008 global financial crisis, according to Reuters.

Other Stocks

PKN Orlen is Poland's largest company and one of Europe's leading oil concerns. With more than 24,000 employees, the company has sales of about $20 billion and a market value of $17B, the largest Polish stock by market cap.

Orange Polska (formerly Telekomunikacja Polska) is a Polish telecommunications provider established in December 1991. With a controlling stake owned by Orange S.A., the latter controlling over 50% of this stake by 2002, and a market cap of 2.5B, this European stock has climbed over 60% in five years, easily topping the average market return of 10% (ignoring dividends).  

Investors can consider many high-value Polish stocks, including the insurance company Powszechny Zaklad Ubezpieczen SA (PZU), PGE Polska Grupa Energetyczna SA, a company active in the power sector, and KGHM Polska Miedz S.A. which engages in the production and sale of copper, precious metals, and other metallurgical products in Poland and internationally.

You can trade 8 European stocks listed on the The Warsaw Stock Exchange with a Trade account.

     

Top European Stocks Listed on the Oslo Stock Exchange

The energy sector has been the best sector in 2022 in terms of return. That’s why the traditional energy sector stocks from the Nordic countries provide some of the most promising European stocks.

Based on analysts' coverage, the Top 3 European stocks picked from Norway are Norsk Hydro ASA, Equinor, and Orkla.

Norsk Hydro ASA

One of the top choices is Norsk Hydro ASA, which is one of the largest aluminum and renewable energy companies worldwide. Founded in 1905 and headquartered in Oslo, it has operations in some 50 countries around the world and is active on all continents. The Norwegian state owns 34.3% of the company through the Ministry of Trade, Industry, and Fisheries.

Best European Stocks Norwegian Norsk_Hydro
These are just a handful of the figures considered in Norsk Hydro ASA's great Value grade from Zacks.com. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see why Norsk Hydro is considered one of the best European value stocks right now.

Other stocks

Equinor is the largest company on the Oslo Stock Exchange in terms of turnover and market value. Offering a very low P/E ratio, Equinor is considered one of the best-value European stocks in 2024. The Norwegian state is the main shareholder in this top energy stock, with a holding of 67%.

Orkla is a defensive consumer staples stock. It is a leading supplier of local branded goods with strong market positions. The company announced recently that it will be transformed into a leading industrial investment company with a brands and consumer-oriented scope. Orkla will consist of 12 portfolio companies. The company has also one of the highest quality scores among analysts and qualifies as one of the best long-term European stocks to hold.  

Norway is home to many large public companies. You could also look at Nordic Semiconductor ASA, a fabless semiconductor company, the telecommunications company Telenor, and the financial services firm DNB. The OBX Index is a leading European stock market index that lists the 25 most liquid companies on the main index of the Oslo Stock Exchange in Norway.

You can trade 10 top European stocks listed on Euronext Securities Oslo with a Trade account.

     

Top European Stocks Listed on the Athens Stock Exchange

Greece is no longer Europe’s problem child, quite the opposite. The first step was to take significant steps towards improving Greece’s antiquated bureaucratic systems in areas such as taxation, speeding up, and modernizing systems for individuals and businesses. The next step, though potentially not an imminent one, will be the upgrade of the Athens Stock Exchange from Emerging to Developed.

Based on analysts' coverage, the Top 3 European stocks from Greece are OPAP, Jumbo, and OTE.

OPAP Stock

Organization of Football Prognostics S.A. (OPAP.AT) is a Greek gambling corporation that operates sports betting and numerical lotteries. Organization of Football Prognostics S.A. (OPAP.AT) holds exclusive rights to provide lottery and sports betting services in Greece. The company’s operating segments include lotteries, online and offline betting, online games, instant and passives, video lottery terminals (VLTs), telecom & e-money services, and other segments.

Best European Stocks Greek OPAP
With its share price advancing by 200% in the last three years, OPAP became the largest Greek-listed company by market cap. According to analysts, it is expected to give significant returns to its shareholders in the future and become one of the best European dividend stocks for 2024, which currently stands at a yield of 11%.  

Other stocks

Jumbo Interactive Limited, might not be a large-cap stock, but it saw a significant share price rise of over the last years on the ASX. Analysts like that Jumbo Group has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 6.6% which is quite remarkable and might be one of the best goods and services stocks in the European markets in 2024 and beyond.

Hellenic Telecommunications Organisation S.A. (OTE) is the largest technology company in Greece.  It is considered an attractive European defensive stock option, with a solid dividend yield in the last years.

Athen Stock Exchange is the home of some of the largest European bank stocks, including Eurobank, a financial organization that operates in Greece, Cyprus, Luxembourg, Bulgaria, and the UK, but also Pireus and Alpha Bank.

You can trade up to 20 European stocks listed on the Athens Stock Exchange with a Trade account.

     

Top European Stocks Listed on the Nasdaq Helsinki Stock Exchange

Since 3 September 2003, the Helsinki Stock Exchange has been a part of OMX and it is now officially known as NASDAQ OMX Helsinki. OMX Helsinki 25 is the leading share index tracking the 25 most actively traded stocks listed on the Helsinki Stock Exchange.

Based on analysts' coverage, the top European stocks from Finland are UPM, Huhtamaki, and Neste.

UPM

UPM consists of six separate business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood. UPM’s growth areas are fiber products, specialty packaging materials, and biorefining.  

Best European Stocks Finnish UPM
UPM aims to pay an attractive dividend, of 30-40% of the company's annual operating cash flow per share. With an almost 5% annual dividend yield and strong momentum, it is seen as one of the best European dividend stocks in 2024.  

Other stocks

Huhtamaki is a global provider of sustainable packaging solutions for consumers and food service customers. The company’s products are renewable, recyclable, and biodegradable. The company’s customers are big global players like McDonald’s and Starbucks.

Neste is the world’s largest producer of renewable diesel refined from waste and residues and has renewable solutions for the aviation and plastics industries. Neste is also a technologically advanced refiner of high-quality oil products.

Huhtamaki is a low-risk quality dividend stock, while Neste is a quality stock that has growth.

Other Finnish stocks you might consider include telecommunications giant Nokia, the elevator company Kone, and the leading Nordic insurance group Sampo.

You can trade up to 20 top Finnish stocks with derivatives.

     

Top European Stocks Listed on the Wiener Börse AG (WBAG)

Founded in 1771, Vienna Stock Exchange is one of the oldest stock exchanges in the world. It also owns and operates the Prague Stock Exchange and holds stakes in energy exchanges and clearing houses. The ATX® index tracks the 20 largest and most traded Austrian stocks.

Based on analysts' coverage, the Top 3 European stock picks from Austria are Verbund, OMV, and Erste.

Verbund

Austria's largest electricity provider, Verbund, covers around 40 percent of electricity demands in Austria and generates 90 percent thereof from hydropower. It is also the largest Austrian stock by market cap and one of the best European stocks in the last years, with share prices reaching a stunning 1,000% growth between 2016 and 2022.

Best European Stocks Austrian Verbung
VERBUND's earnings growth is expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value, according to industry experts.

Other stocks

Erste Group Bank AG is a top financial service provider in Central and Eastern Europe serving 15.7 million clients in over 2,700 branches in seven countries. The upgrade of Erste Group Bank AG to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that Erste shares price might move higher in the near term.

The international integrated oil, gas, and petrochemical business, OMV Group, was ranked in the top 500-largest companies in the world in the Forbes Global 2000 of 2021. With a competitive Forward P/E ratio and a high-dividend yield, OMV seems more suited for pension funds and index funds focused on market capitalization, and geographic and sector exposure. Its growth perspective seems limited according to analysts.  

Other Austrian stocks you might consider include Andritz, one of the technology and global market leaders in the hydropower business, Voestalpine AG, the steel-based technology and capital goods group based in Linz, or Uniqa Insurance Group AG, one of the largest insurance groups in Central and Eastern Europe with approximately 40 companies in 22 countries and over 10 million customers.

You can trade Austrian shares listed on the Wiener Börse AG (WBAG), also known as the Vienna Stock Exchange with derivatives.

     

How to Trade and Invest in the European Stock Markets

Most of the time, you can buy European shares directly, unlike many other foreign stocks such as Asian stocks, and more specifically Chinese stocks, which need to be dual-listed in the UK or US markets.

With CAPEX.com, you can trade stocks using derivatives or buy shares of stocks with ownership. Here’s a quick overview of each option:

Trading European Stocks

Trading European shares involves derivative products.

Why would I trade stocks?

  • You can open a position with just a small initial deposit called a margin
  • You can make a profit whether the stock’s value goes up or down
  • You can choose to go long or short in different market conditions
  • CFDs can be used to hedge your portfolio

      
Learn more about Stock Trading

Investing in European Shares

Investing in European shares involves buying the shares outright by putting up the full value of the position.

Why would I invest in stocks?

  • You want to enjoy dividends
  • You plan to invest over the long term
  • You want to own shares outright
  • You want voting rights in the companies you invest in

     
Learn more about Investing in Stocks

Trading and Investing in the Best European Stocks Summed up

  • You can buy, sell, or trade European stocks if you’re interested in the European markets.
  • Open a Trading Account with CAPEX.com which allows you to trade derivatives on up to 2,000 stocks or an Investing Account which allows you to buy up to 5,000 stocks and ETFs.
  • There are many popular and well-performing stocks in European markets to choose from. 
  • You can buy or trade shares in several European markets, including Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, the Netherlands, Norway, Poland, and Portugal. 

 

Free resources  

Before you start investing and trading in the European markets, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading and investing courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you become a better trader or make more informed investment decisions.  

Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how leveraged trading works – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for stock investors who are looking to make a transition to leveraged trading.

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Cristian Cochintu
Cristian Cochintu
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Cristian Cochintu writes about trading and investing for CAPEX.com. Cristian has more than 15 years of brokerage, freelance, and in-house experience writing for financial institutions and coaching financial writers.