10 Most Profitable European Stocks To Invest In

7. Stellantis N.V. (NYSE:STLA)

Upside Potential: 18.28%

5-Year Net Income CAGR: 33.14%

TTM Net Income: $18.59 Billion 

Stellantis N.V. (NYSE:STLA) is a holding firm based out of the Netherlands and is a top automaker and mobility provider around the world. Stellantis is a well-established name in the global market and owns famous brands including Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram. The company is mainly involved in designing, engineering, manufacturing, distributing, and selling vehicles.

In Q3, Stellantis N.V. (NYSE:STLA) results were on the downside as the company’s consolidated shipments declined by nearly 20% or 279,000 units year-over-year. However, recently, the company introduced STLA Frame, which is part of the Stellantis’ Dare Forward 2030 plan and added it to the lineup of global battery electric vehicle (BEV) platforms intending to achieve diverse electrification needs. The company is investing over €50 billion in electrification to obtain 100% BEV passenger car sales in Europe and 50% in the U.S. by 2030.

The company has industrial operations in over 20 countries and dealers in more than 130 countries. Stellantis N.V. (NYSE:STLA) operates in both luxury and mainstream passenger vehicle markets which include pickup trucks to SUVs. The company’s strong global footprint makes it a solid automobile stock for the long term.

Ariel Global Fund stated the following regarding Stellantis N.V. (NYSE:STLA) in its Q3 2024 investor letter:

“Lastly, shares of multinational automotive manufacturing company, Stellantis N.V. (NYSE:STLA) declined following a significant earnings miss. The company attributed the performance to lower sales, production disruptions from a product overhaul and weak performance in North America. Muted demand for electric vehicles in Europe also weighed on performance. In response, STLA is implementing operational improvement initiatives to bring down U.S. inventory levels through production cuts, consumer incentives and gradual price adjustments. Despite these results, management maintained its previous buyback and dividend commitments. Although we expect discounting to increase as U.S. inventory ages, we maintain a constructive view on the company. We believe STLA’s strong global footprint and commitment to industry-leading profitability, operational excellence, and strategic foresight will continue to enhance long-term shareholder value.”