Sales of the company’s new drugs for hemophilia and multiple sclerosis are helping to offset slowed growth of its blockbuster cancer drugs (Herceptin, Rituxan and Avastin) due to generic competition. That has helped Roche generate solid 10% annual EPS gains over the past three years. At present, Unilever’s biggest challenge comes from emerging markets (60% of revenues) that are not stockpiling consumer staples as quickly as the U.S. or Europe.
The company is guiding for full-year organic sales growth of 6%-7%, a 17.5% operating profit and increasing EPS. ASML ended the fiscal 2021 with total revenues of €18.6 billion ($21.1 billion) representing 33% year-over-year growth. For fiscal 2022, review keys to heaven’s economy the company is guiding for full-year sales growth of around 20%. With this in mind, here are 10 of the best European stocks to buy for 2022 and beyond. While value is certainly front and center, this group includes some growth plays as well.
- A large number of the bigger European publicly-traded companies have dual listings on other world stock exchanges, such as the New York Stock Exchange (NYSE).
- If you’re up for the opportunity and risk of international investing, there are six ways to gain exposure to growth outside the U.S.
- GDRs can be found on the London Stock Exchange and Luxembourg Stock Exchange, as well as on exchanges in Singapore, Frankfurt, and Dubai.
- Better still, NVS is like many of the other best European dividend stocks in that share present a value at current prices.
- Nestle (NSRGY, $131.35) has been one of the best European stocks for years.
Its familiar brands include Dove soap, Hellmann’s mayonnaise, Knorr soups and Vaseline, to name just a few. Growth in the cloud is what makes U.K.-based Sage Group (SGPYY, $44.15) one of the best European stocks going forward. The company provides cloud-based accounting, human resources and payroll software and solutions to small and medium-sized businesses worldwide. A market leader in credit-related data, Experian is roughly 30% bigger than the next largest competitor – Equifax (EFX) and nearly twice the size of the TransUnion (TRU), the #3 competitor. And thanks to the company’s highly scalable business model, Experian is able to grow revenues with very low incremental costs. Switzerland-based ABB (ABB, $37.03) is a global technology developer with operations in electrification, robotics, automation and motion.
This investment in infrastructure bodes well, as it creates jobs (Revolut have an expanding base in Krakow) and in return wealth. Many investors rely on European indexes provided by FTSE or MSCI as their benchmark for performance and returns. European stocks are more negatively correlated with a falling U.S. dollar. If other factors are all equal, a falling U.S. dollar is better for European stocks, Gunzberg says. Investors need also to be wary of fraudulent brokers not registered with regulators in their market, such as the Securities and Exchange Commission (SEC) in the U.S.
On the other hand, the IMF forecasts a GDP growth of 0.8% in 2023 and 1.4% in 2024 for the Eurozone (the 20 EU Member States that have adopted the Euro as their currency). Goldman Sachs in its report said it believes the Euro area economy will contract by only 0.7% from the last quarter of 2022 to the second quarter of 2023. Get this delivered to your inbox, and more info about our products and services. Data releases will include the euro zone’s trade balance figures for August.
Nestle’s organic sales improved by 2.8% in the first half of 2020, exceeding analyst estimates as a result of strong sales of premium pet foods. Net profits rose 18.3%, boosted by its recent sale of the U.S. ice cream business, and the company is guiding for 2% to 3% organic sales growth this year. SAP’s cloud revenues grew 25% during the first six months of 2020, total revenues rose 4% and EPS more than doubled as a result of tokenexus opinion based on objective data margin gains on a better product mix. Both figures are a little ahead of full-year estimates, which include forecasts for 2020 cloud revenues to grow 18% to 24%, and total sales to gain 1% to 3%. For years, wealth advisors have told clients to invest a portion of their funds overseas to diversify portfolios and mitigate risk. These are some of the best European stocks you can buy for bargain prices and decent income, too.
Those in the United States looking to diversify may begin looking beyond the amber waves of grain to the capital markets of other countries and regions. Europe is a particularly attractive choice, as it is home to many of the world’s preeminent corporations that have rewarded owners with decades of capital appreciation and dividends. The iShares Core MSCI Europe ETF seeks to track the investment results of an index composed of large, mid, and small-capitalization European equities. It tracks the performance of an index composed of companies from developed countries in Europe. ASML is the world’s leading semiconductor company headquartered in Veldhoven, Netherlands.
Global Mutual Funds
The company’s total addressable market is estimated at 67 million businesses and $38 billion in revenues. On an annual basis, SGPYY’s overall market is growing 6% and the cloud spend segment is rising 12%. Experian is one of the best European stocks when it comes to dividends, paying them out for 12 years straight.
The US S&P 500 index has outperformed the Stoxx Europe 600 index, and it trades at a relatively lower P/E compared to the U.S. Europe remains a world leader in many areas and has specialized in luxury goods and top-class cars, chemicals, and high-end engineering. Although Ferrari, Nestle and Richemont (owner of Cartier) will need little instruction, the others are also major companies. ASML manufactures micro chips and is probably the most important company you have not heard about.
Europe comprises fifty nations, and each nation has its own culture, political system, and economic strengths and weaknesses. The disparate nature of European economies has been seen as a distinct advantage for investors seeking geographical diversification. With the increasing integration of the world markets, the borders are increasingly becoming virtual. The accessibility to goods and services offered across the globe has increased with much ease. Namely your investment goes up 20% but sterling appreciates against the Euro, wiping out your investment gain.
For many investors, prudent diversification has meant more than balancing asset class exposure or carefully choosing different sectors or industries in which to invest. One can directly invest in the European markets by opening a global account with a broker in the dynamic locale in angularjs home country or opening an account with a local broker in the target country. However, it is not a good idea for retail investors as there are many additional costs, taxes, technical support, foreign currency translations, and a lot of other factors to consider.
The Risks of Foreign Investing
It’s almost impossible to avoid international exposure in today’s globally interconnected economy. With more than half the world’s market capitalization now lying outside the United States, international stocks present a wide range of opportunities simply unavailable with domestic stocks. Many leading stock exchanges are based outside of the U.S., offering investors potential to expand and diversify their portfolios with securities in both emerging and well-established markets. Diversification in global stock markets can help you manage risk and position your portfolio for long-term growth. Investors who want to gain exposure in the global markets but do not want to get into the fuss of stock selections and management can invest in global or international mutual funds. Investors can instantly diversify their portfolio while getting exposure to foreign companies, spreading their investment across various companies.
Top Performing European Stocks So Far in 2023
The Vanguard FTSE Europe Index ETF ( VGK) is market cap weighted and follows a benchmark, the FTSE Developed Europe All Cap Index, and holds 1,321 stocks. The expense ratio is a slim 0.08% and is a good option if “you’re looking for the rock-bottom price without giving up performance,” he says. Maintaining a home country bias by investing mostly in U.S. large-cap stocks can leave blind spots in your total investment portfolio, Loewengart says. This could mean buying The Coca-Cola Company (KO) or McDonald’s (MCD), both of which generate the majority of revenue from global operations. This is a back door approach and does not provide true international diversification, though it does give investors international exposure.
Ways to Invest in Foreign Stocks
You can copy the social trader’s trades in your own account if you don’t want to work out your own trading plan. The expansion of the EU has meant opportunities to new economies and their companies. Anyone travelling to Warsaw or Krakow cannot fail to notice the shinny brand new terminals.
How to Buy European Stocks
The level of hedge fund ownership as of Q has been used to rank these stocks. Europe is experiencing tough economic conditions as the energy crisis following the conflict between Russia and Ukraine in February 2022 has caused industries and consumers to face soaring energy prices. The region was already under pressure due to inflation and the gap between the post-pandemic pent-up demand and constrained supply across numerous sectors.
Novo Nordisk’s revenue rose 13% year-over-year during the first nine months of 2021, fueled by market share gains in diabetes care and 49% growth in obesity care sales. The company recently upped its full-year 2021 guidance, now expecting sales and profit growth in the 12%-15% range and free cash flow of DKK billion (approximately $7 billion at the midpoint). The company’s total sales grew 8% year-over-year in the first nine months of 2021, fueled by 39% diagnostic division revenue gains. Roche increased its full-year 2021 guidance to mid-single digit sales and earnings growth and said it expects to boost its dividend.