In this article, we will discuss the 10 Top Performing European Stocks Heading into 2025.

As per Deloitte, inflation in the Eurozone slightly rebounded in October but was still quite low. The consumer price index increased 2% in October as compared to the year earlier. While this was slightly up from the low of 1.7% of inflation in September, this was the lowest since June 2021. For the ECB, the increase to 2% should not be worrisome. This is because the ECB’s target is 2%.

As per the World Economic Forum, European households continue to save at their highest rates in years, with saving rates in the eurozone exceeding the pre-pandemic levels. In Q2 2024, the saving rate in Europe came in at 15.7%, reflecting an increase from the 15.2% rate that was seen in the quarter prior, as per Eurostat (the statistical office of the EU). In its latest economic forecast, the European Commission mentioned that GDP growth in 2024 is expected to be 1% in the European Union. Furthermore, the growth should improve to 1.6% in 2025.

Impact of Trump’s Presidency on Europe’s Economic Growth

As per Goldman Sachs, Europe might face a big hit to economic growth as trade tensions rise. These tensions are fueled by Trump’s proposal for sweeping tariffs on all of the US imports. The large bank added that the actual magnitude of tariff increases might be less of a matter of worry as compared to the uncertainty that is created by threatening to impose tariffs on Europe. While Mr. Trump’s 10% across-the-board tariff poses a clear risk, Goldman Sachs expects the incoming President to initiate a more moderate set of duties on European countries.

These tariffs will be targeted towards auto exports, which are worth $80 billion, or 0.9% of EU exports.   The duties are expected to have a significant impact on GDP in Germany, Sweden, and Switzerland in particular.  ECB president had earlier mentioned that, if Trump wins, it will be a threat to Europe due to his tariff ideas, NATO commitment, and climate change policies.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

Pathway For Rate Cuts and Inflation

The Bank of England decided to cut the interest rates by 25 basis points and mentioned that expected reductions would be gradual. This is because of the expectations that the British government’s first budget might lead to increased inflation and economic growth. As per Reuters, BoE mentioned that inflation is expected to rise to ~2.5% by the end of 2024 from 1.7% in September and 2.7% by 2025 end before declining gradually below its 2% target in mid-2027.

The Government’s decisions to raise a cap on bus fares, higher value-added tax on private school fees, and increase employers’ social security contributions are some of the measures that might fuel inflation.

Amidst the uncertainties about the Trump Administration’s policies, Wall Street analysts opine that investors are required to bet on stocks that have a proven track record and that are expected to grow in the near future.

With this in mind, let us now have a look at the 10 Top Performing European Stocks Heading into 2025.

Our Methodology

To list the 10 Top Performing European Stocks Heading into 2025, we used a screener and sifted through online rankings to extract the European stocks. After getting the initial list of 20-25 stocks, we filtered out the list by selecting the ones that have increased significantly on a YTD basis and which have higher upside potential, as of November 10. Finally, the stocks were ranked in ascending order of their average upside potential.

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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

10 Top Performing European Stocks Heading into 2025

10) Opera Limited (NASDAQ:OPRA)

% Increase on a YTD Basis: ~41.9%

Average Upside Potential: ~27.4%

Opera Limited (NASDAQ:OPRA) offers mobile and PC web browsers and related products and services in Norway and internationally. The company is headquartered in Oslo, Norway.

Wall Street analysts are optimistic about Opera Limited (NASDAQ:OPRA)’s e-commerce segment and GX platform. The company’s strategic focus on monetization improvements and its emphasis on high-value markets and GX users should contribute to sustained topline and bottom-line growth in the near to medium term. Furthermore, its focus on AI is another advantage that should enhance user experience and engagement.

Opera Limited (NASDAQ:OPRA) made its integrated AI, Aria, which remains accessible to all users without the need for logging in. It forms part of the company’s broader strategy to enhance its browser AI capabilities. The company’s ongoing focus on innovation and aggressive approach to capturing market share should fuel its performance. Opera Limited (NASDAQ:OPRA) remains optimistic about Q4 2024, particularly about e-commerce growth during the holiday season.

During Q3 2024, the strong monetization performance of its browsers and growth of its Opera Ads platform, together with Opera Limited (NASDAQ:OPRA)’s ability to deliver targeted, high purchase intent traffic to its advertising partners, led to the advertising revenue growth of 26% YoY to $76.8 million.

The company’s search revenue saw an increase of 13% YoY as a result of the focus on users with the potential for the greatest monetization. For FY 2024, Opera Limited (NASDAQ:OPRA) expects revenue in the range of $470 million – $473 million and adjusted EBITDA of between $112 million – $114 million. TD Cowen increased the target price on the shares of the company from $25.00 to $28.00, giving a “Buy” rating on 30^th October.

9) Codere Online Luxembourg, S.A. (NASDAQ:CDRO)

% Increase on a YTD Basis: ~145.9%

Average Upside Potential: ~34.4%

Codere Online Luxembourg, S.A. (NASDAQ:CDRO) continues to operate as an online casino gaming and sports betting company.  The company is based in Luxembourg, Luxembourg.

Codere Online Luxembourg, S.A. (NASDAQ:CDRO)’s management is optimistic about the latter half of the year as a result of the investments in Mexico. Also, Argentina has been identified as a potential market for expansion because of its existing operations and synergies. Market experts believe that Codere Online Luxembourg, S.A. (NASDAQ:CDRO) has a strategic focus on the core markets of Mexico and Spain.

Codere Online Luxembourg, S.A. (NASDAQ:CDRO)’s recent expansion into the Province of Mendoza should further support growth momentum. Through this expansion, the company will be able to enhance its competitive position in the Latin American online gaming market.

Codere Online Luxembourg, S.A. (NASDAQ:CDRO) highlighted that improvement of payment integrations remains a key focus for enhancing customer experience and retention. The company is expected to capitalize on its strengths in the casino segment. Wall Street expects that Codere Online Luxembourg, S.A. (NASDAQ:CDRO)’s business in Mexico is expected to be aided by innovative partnership.

The company announced its groundbreaking collaboration with Blip, which is an AI-first conversational platform. The focus is to introduce an unparalleled gaming experience to Mexican customers. With the help of this collaboration, Codere Online Luxembourg, S.A. (NASDAQ:CDRO) expects to offer superior experiences for its customers in Mexico while, at the same time, improving the ability to deploy highly targeted promotional campaigns. The company’s marketing investments are expected to be focused on improving customer engagement and customer acquisitions, which should further aid Codere Online Luxembourg, S.A. (NASDAQ:CDRO)’s net gaming revenue over the upcoming quarters.

8) Bicycle Therapeutics plc (NASDAQ:BCYC)

% increase on a YTD Basis: ~35%

Average Upside Potential: ~40.2%

Headquartered in Cambridge, the United Kingdom, Bicycle Therapeutics plc (NASDAQ:BCYC) is a clinical-stage biopharmaceutical company, that is engaged in developing a class of medicines for diseases that are underserved by existing therapeutics in the US and UK.

Bicycle Therapeutics pic (NASDAQ:BCYC)’s proprietary Bicycle platform technology, which develops novel peptide-based therapeutics, has placed the company as a potential disruptor in the oncology space and beyond. The company focuses on developing a class of medicines called Bicycles, which are chemically synthesized peptides constrained to form two loops. These structures demonstrate high stability and affinity for targets, translating into therapies having favorable efficacy and safety profiles.

Bicycle Therapeutics pic (NASDAQ:BCYC)’s lead candidate, zelenectide pevedotin (formerly BT8009), has been positioned as a potential alternative to existing treatments like Padcev, with a focus on improved safety and efficacy profiles. While the company mainly remains focused on oncology applications, the versatility of its proprietary Bicycle platform demonstrates numerous opportunities for expansion into other therapeutic areas. The platform’s ability to develop highly specific and stable peptide-based therapeutics can be applied to various targets and diseases.

Notably, the potential areas for expansion can consist of autoimmune disorders, rare diseases, or even certain neurological conditions where targeted therapies are required. The “plug-and-play” capability of the Bicycle platform results in rapid adaptation to new targets and disease areas. Wall Street analysts opine that Bicycle Therapeutics plc (NASDAQ:BCYC)’s expansion beyond oncology will diversify its pipeline and risk profile and can significantly increase its addressable market and long-term growth potential.

Analysts at Royal Bank of Canada initiated coverage on the shares of Bicycle Therapeutics plc (NASDAQ:BCYC) on 5^th September. They gave an “Outperform” rating with a price target of $35.00.