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.
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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.
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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 30th 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 5th September. They gave an “Outperform” rating with a price target of $35.00.
7) Criteo S.A. (NASDAQ:CRTO)
% Increase on a YTD Basis: ~44%
Average Upside Potential: ~43.7%
Criteo S.A. (NASDAQ:CRTO) is a technology company, which offers marketing and monetization services on the open Internet in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company has its headquarters in Paris, France.
Criteo S.A. (NASDAQ:CRTO) remains focused on positioning itself as a leading Commerce Media platform for the Open Web. The company leverages AI-driven tools, unique data, and targeting experience in order to offer advertising solutions. Its focus on becoming a comprehensive Commerce Media platform should differentiate it from the competitive adtech sector. Wall Street analysts believe that Criteo S.A. (NASDAQ:CRTO) can complement major players like Amazon in the retail media space, addressing the fragmentation issue that is being faced by several advertisers when trying to reach consumers throughout multiple platforms.
Criteo S.A. (NASDAQ:CRTO)’s ability to innovate and sustain its market share in the evolving digital advertising space should aid its long-term growth. Furthermore, the company is expected to be supported by its unique dataset and specialized offerings in retail media. As more and more retailers realize the value of monetizing their digital properties, Criteo S.A. (NASDAQ:CRTO)’s solutions might see higher adoption.
The company’s AI-driven tools and technologies and expertise in precision targeting on the open web form a base for strong and sustainable growth.
ClearBridge Investments, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:
“New positions in the quarter were from a variety of sectors. Criteo S.A. (NASDAQ:CRTO), in the communication services sector, provides digital advertising technologies that help drive clients’ e-commerce businesses. While the company was previously reliant on third-party cookies to help optimize its products, management has spent the past five years pivoting away from this technology and focusing on building a leading presence in the burgeoning retail media space. We believe this transformation has reached a tipping point, and that the inherent growth opportunities in this new end market represent a higher growth rate then is currently reflected in the company’s valuation.”
6) NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS)
% Increase on a YTD Basis: ~101%
Average Upside Potential: ~51.3%
NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) is a late-stage biopharmaceutical company, which is engaged in developing therapies to enhance patient care in populations with metabolic disease. The company is headquartered in Naarden, the Netherlands.
NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) continues to make significant strides in its clinical trials. It demonstrated successful outcomes from its Phase 3 BROOKLYN clinical trial, which exhibited a substantial reduction in low-density lipoprotein cholesterol in patients with heterozygous familial hypercholesterolemia. The drug obicetrapib, which was evaluated in the trial, exhibited a significant ability to reduce LDL-C levels. Wall Street analysts are confident in obicetrapib’s clinical profile and its potential to improve patients’ health outcomes.
NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS)’s patent portfolio for obicetrapib is robust, with a method of use and dose selection patents anticipated to offer market exclusivity until the late 2030s. This strong IP position should help the company to garner substantial tail revenues. The drug’s convenience profile, along with potential metabolic benefits, should act as a key differentiator in the competitive landscape of cholesterol-lowering treatments.
Wall Street analysts believe that the drug’s broad benefits, such as its efficacy in lowering LDL-C and Lp(a), and its potential use in diabetic patients, should further strengthen its market appeal. NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS) recognized $29.1 million in revenue for Q3 2024 as compared to $2.9 million in the same period of 2023. This rise was mainly because of the achievement of a clinical development milestone from Menarini during the current period.
Analysts at Piper Sandler restated an “Overweight” rating on the shares of NewAmsterdam Pharma Company N.V. (NASDAQ:NAMS), issuing a $37.00 price target on 23rd September.
5) Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA)
% Increase on a YTD Basis: ~23%
Average Upside Potential: ~53.1%
Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) is a biopharmaceutical company, which focuses on discovering, acquiring, developing, and commercializing therapeutic medicines for patients suffering from debilitating diseases having unmet medical needs. The company is based out of London, the United Kingdom.
Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA)’s focus on disease awareness and expanding prescriber adoption demonstrated promising Q3 2024 results. This is evidenced by the fact that more than 2,550 prescribers (since its launch in April 2021) have written ARCALYST prescriptions for recurrent pericarditis. As of the end of Q3 2024, the average total duration of ARCALYST therapy in recurrent pericarditis rose to ~27 months. Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA)’s clinical pipeline, which includes the ongoing trials for abiprubart in Sjögren’s disease, remains the priority.
Notably, consistent execution throughout the commercial organization, which includes strategic investments in brand and disease awareness, continued to fuel ARCALYST’s growth among new and repeat prescribers.
For 2024, Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) expects ARCALYST net sales to increase to between $410 million and $420 million. Within the pipeline, the company has been enrolling and dosing patients in the Phase 2b clinical trial of abiprubart in Sjögren’s disease. It expects to remain cash flow positive on an annual basis while continuing to invest throughout its business, including commercialization and pipeline advancement.
As per industry experts, disease awareness campaigns and commercial strategies have been increasing prescriber adoption. Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) expects continued growth in ARCALYST sales and prescriber numbers, with a strong emphasis on increasing disease awareness and diagnosis for recurrent pericarditis. The company continues to focus on making investments, targeting to bring new treatments to the market for debilitating diseases.
Analysts at Evercore ISI increased their target price on the shares of Kiniksa Pharmaceuticals International, plc (NASDAQ:KNSA) from $30.00 to $35.00, giving an “Outperform” rating on 30th October.
4) Neonode Inc. (NASDAQ:NEON)
% Increase on a YTD Basis: ~184%
Average Upside Potential: ~56%
Neonode Inc. (NASDAQ:NEON) is engaged in developing optical sensing solutions for contactless touch, touch, and gesture sensing in the US, Switzerland, France, and internationally. The company is headquartered in Stockholm, Sweden.
Neonode Inc. (NASDAQ:NEON) has licensed its Touch Sensor Module (TSM) technology to YesAR, which is a Chinese firm specializing in holographic display technology. Wall Street analysts are quite optimistic about this development in the company’s transition from product sales to a licensing business model. The licensing agreement is expected to allow YesAR to integrate Neonode Inc. (NASDAQ:NEON)’s TSM technology into the development and manufacturing of holographic infotainment solutions, aimed at automotive and elevator industries, among others.
Market experts believe that this deal has an upfront technology access fee, with subsequent royalties as a result of future sales. The developments exhibit a significant step for Neonode Inc. (NASDAQ:NEON) in the expanding market of holographic interfaces. The company remains positive towards the prospects of garnering new projects and business with its driver and in-cabin monitoring solutions. These solutions have been generating positive attention from OEMs and suppliers in the automotive industry.
Neonode Inc. (NASDAQ:NEON)’s flexible and scalable approach to driver and in-cabin monitoring offers manufacturers and their suppliers a cost-effective and efficient platform for getting compliance and automotive innovation. The company sees a growing market interest in licensing its cost-effective and proven touch interaction solutions. Neonode Inc. (NASDAQ:NEON)’s cash and accounts receivable came in at $18.6 million and working capital for continuing operations sat at $17.7 million as of September 30, 2024.
Its financial position and liquidity should help it execute its strategy to secure more licensing opportunities for innovative technologies. As per Wall Street analysts, the shares of Neonode Inc. (NASDAQ:NEON) have an average price target of $10.25.
3) Merus N.V. (NASDAQ:MRUS)
% Increase on a YTD Basis: ~90.4%
Average Upside Potential: ~61.4%
Merus N.V. (NASDAQ:MRUS) is a clinical-stage immuno-oncology company, which is engaged in the development of antibody therapeutics. The company is headquartered in Utrecht, the Netherlands.
Merus N.V. (NASDAQ:MRUS)’s platform technology enables the creation of full-length human bispecific antibodies, possessing the potential to aim multiple cancer pathways simultaneously. Zenocutuzumab, the company’s lead candidate, demonstrated promising results in pre-clinical studies. Recent data by Merus N.V. (NASDAQ:MRUS) reflected significant inhibition of tumor growth in high NRG1-expressing patient-derived xenografts throughout various tumor types. Wall Street analysts are optimistic about the potential for zenocutuzumab in the treatment of brain, ovarian, esophageal, gallbladder, and liver cancers.
Furthermore, the MCLA-129 data in NSCLC patients was well-received, reflecting the versatility of Merus N.V. (NASDAQ:MRUS)’s approach in aiming for different cancer types. The oncology market provides a strong opportunity for the company. Given the favorable outlook for the global cancer therapeutics market, innovative approaches like bispecific antibodies appear to be well-positioned to capture market share.
Merus N.V. (NASDAQ:MRUS)’s focus on difficult-to-treat cancers and combination therapies should offer a competitive edge. The combination therapies, like pairing petosemtamab with pembrolizumab, align with the present trend in oncology towards multi-targeted approaches.
Guggenheim upped its price objective on the shares of Merus N.V. (NASDAQ:MRUS) from $93.00 to $111.00, giving a “Buy” rating on 1st October.
TimesSquare Capital Management, an equity investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. A new addition this quarter is Merus N.V. (NASDAQ:MRUS), a clinical-stage immune-oncology biotechnology company. Their pipeline consists of several programs targeting solid tumors with various bispecific antibodies.”
2) Oculis Holding AG (NASDAQ:OCS)
% Increase on a YTD Basis: ~47.33%
Average Upside Potential: ~78.1%
Oculis Holding AG (NASDAQ:OCS) is a clinical-stage biopharmaceutical company, which is engaged in developing drug candidates to treat ophthalmic diseases. The company is based in Zug, Switzerland.
Oculis Holding AG (NASDAQ:OCS) remains focused on the development of innovative treatments to improve eye care and save sight. This is expected to be aided by a differentiated pipeline of product candidates that are targeted at addressing unmet medical needs in ophthalmology. Wall Street analysts believe that Oculis Holding AG (NASDAQ:OCS) has strengthened its leadership team given the recent appointments of Sharon Klier, M.D. as Chief Development Officer and Daniel S. Char as Chief Legal Officer.
These developments, together with a robust balance sheet, place the company well to drive execution in pipeline development and create value for key stakeholders. As of September 30, 2024, Oculis Holding AG (NASDAQ:OCS) had total cash, cash equivalents, and short-term investments of CHF 105.5 million ($125.0 million) and these balances should finance its operations into H2 2026. Moving forward, the company continues to prepare itself for a New Drug Application (NDA) submission for OCS-01 in early 2025.
Oculis Holding AG (NASDAQ:OCS) is optimistic about ramping up the late-stage pipeline and transitioning to the commercial phase. This optimism stems from an experienced leadership team and strategic planning targeted at improving patient outcomes in the ophthalmology sector. It plans to consult with the FDA in Q1 2025 to discuss the positive topline results from the Phase 2b RELIEF trial, together with the next steps for OCS-02 (licaminlimab) development.
As per Wall Street analysts, the shares of Oculis Holding AG (NASDAQ:OCS) have an average price target of $29.67.
1) VEON Ltd. (NASDAQ:VEON)
% Increase on a YTD Basis: ~73%
Average Upside Potential: ~92.3%
VEON Ltd. (NASDAQ:VEON) is a digital operator, which provides connectivity and internet services to corporates and individuals. The company has its headquarters in Amsterdam, the Netherlands.
VEON Ltd. (NASDAQ:VEON) continues to focus on digital strategy and 4G network expansion. Wall Street experts opine that the company’s focus on technology should drive the next leg of growth. The company launched the Hambi super app, which is an AI-powered innovative platform consolidating a comprehensive suite of digital services and connectivity into a single application. This is now accessible to all mobile users in Uzbekistan.
Hambi has joined VEON Ltd. (NASDAQ:VEON)’s super app offerings throughout its markets, such as MyBL in Bangladesh, Simosa in Pakistan, and MyBeeline in Kazakhstan. All these are digital gateways to learning, entertainment, games, customer care, and more. The company’s strategic focus on digital innovation and market penetration in key regions places it in a favorable position to meet its financial targets and manage upcoming debt obligations.
VEON Ltd. (NASDAQ:VEON) announced that JazzCash, which is the financial services arm of Jazz, the company’s digital operator in Pakistan, signed an agreement with Dgpays. This partnership should allow JazzCash to modernize the payment gateway for e-commerce transactions. This will enhance transaction speed, security, and fraud prevention capabilities. Industry experts have expressed optimism regarding this development. This is because the adoption of digital wallets continues to fuel growth in cashless payments in Pakistan.
The number of digital wallet transactions saw a whopping increase of 134% YoY to 269 million for the 12 months ended 30 June 2024, making up ~87% of all online e-commerce payments.
According to Wall Street, the shares of VEON Ltd. (NASDAQ:VEON) have an average price target of $65.
While we acknowledge the potential of VEON as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than VEON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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