In this article, we discuss the 11 Top Performing European Stocks So Far In 2025.
The world economy is hanging by a thread, as the macroeconomic environment consists of trade wars, retaliatory tariffs, and political unrest in Ukraine and the Middle East. It adds to economic uncertainty, with market experts offering cautious economic forecasts. According to EY, the euro area will experience a modest economic turnaround in 2025, and growth is expected to increase from 0.7% last year to 1.3% and 1.8% in 2025 and 2026, respectively. It is forecasted to simmer down to 1.4% in 2027. Among all European countries, Malta is projected to experience the highest GDP growth in 2025 at 4%. EY expects soft employment growth across Europe, driven by demographic challenges and subdued labor demand. Unemployment will likely remain at 2024 levels. While nominal wage this year will clock in higher than pre-pandemic levels, wage growth will take a hit. Central and Eastern European countries are forecasted to experience relatively higher inflation in 2025, while the overall rate remains just over 2% in the euro area.
Meanwhile, German economic institutes have slashed their growth projections for 2025 to 0.1% from the previous forecast of 0.8% in September 2024. This revised estimate does not incorporate the recent tariffs levied by the US. These tariffs will be a major setback for European economies, possibly toppling them over the edge of recession for the third consecutive year. The new conservative government declared a €500 billion fund to improve infrastructure and defence and stimulate growth. The fiscal package enhances the economic outlook for 2026 and 2027.
However, as the United States is feeling the pressure from high valuations and growing political instability, analysts are looking towards Europe as a better bet for stock investors. Analysts point towards Europe offering a more stable outlook, with lower stock prices, clearer policy direction, and even potential interest rate cuts on the horizon. Investors seem to be shifting their focus, partly because the threat of US tariffs on Europe, especially on automobiles, feels less uncertain now that details are clearer. There is also less exposure to tech in Europe, which is seen as a good thing right now. Europe’s markets, with just 10% tech exposure in the Europe 600 compared to 30% in the broader market, look more balanced.
With solid earnings, rising share buybacks, and cheaper stock valuations, investors are turning to Europe. Experts suggest that European and UK markets now have their best shot in years at outperforming the US. With that in mind, let’s take a look at the best-performing stocks in Europe so far in 2025.
Our Methodology
To compile our list of the top performing European stocks this year, used the Finviz screener, applying filters for the region and a market cap of over 10 billion to identify stable European companies. Next, we applied a performance filter and selected 11 European stocks with the highest YTD share price growth as of April 11. We have also mentioned the Q4 2024 hedge fund sentiment around the holdings for further insight.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Nokia Oyj (NYSE:NOK)
Number of Hedge Fund Holders: 20
YTD Share Price Performance as of April 11: 11.21%
Nokia Oyj (NYSE:NOK) is a Finnish provider of mobile, fixed, and cloud network solutions worldwide. The company operates through four business segments – Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. NOK offers services like 5G, IP and optical networks, cloud software, and licensing of its patents and brand to telecom providers, governments, and industrial enterprises. It is one of the best performing stocks in Europe.
On March 3, BofA Securities analyst analyst Didier Scemama reiterated a Neutral rating on Nokia Oyj (NYSE:NOK) with a price target of €4.91, up from €4.68. Nokia’s recent acquisition of American firm Infinera is expected to strengthen its financial outlook, leading BofA Securities to update their forecasts. They now expect Nokia’s revenue to equal €20.8 billion in 2025, growing further in 2026 before a slight dip in 2027.
Nokia Oyj (NYSE:NOK) concluded its share buyback program on April 2, 2025, which was initiated in November 2024 to help offset the dilution from its Infinera acquisition. Between late November and early April, the company repurchased 150 million shares at an average price of €4.69, for a total of roughly €703 million. Nokia plans to cancel these shares later in April. After the buyback, the company now holds just over 220 million treasury shares.
According to Insider Monkey’s fourth quarter database, 20 hedge funds were long Nokia Oyj (NYSE:NOK), compared to 16 funds in the preceding quarter. Richard S. Pzena’s Pzena Investment Management was the leading stakeholder of the company, with 83.8 million shares valued at $371.4 million.
10. Coca-Cola Europacific Partners PLC (NASDAQ:CCEP)
Number of Hedge Fund Holders: 24
YTD Share Price Performance as of April 11: 13.13%
Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) is a UK-based company that manufactures, bottles, and distributes soft drinks, energy drinks, water, juices, tea, and coffee, featuring popular brands like Coca-Cola, Sprite, Fanta, Monster, Schweppes, and Minute Maid. CCEP ranks 10th on our list of the best performing stocks in Europe.
On April 8, Bernstein maintained a Market Perform rating on Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) and lifted the price target to $84.5 from $82, citing strong fundamentals and consistent dividends. The investment firm expects 10% EPS growth because of cost savings and a lucrative product mix at CCEP, though short-term debts exceed liquid assets.
Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) reported its Q4 2024 results on February 14, 2025. The company announced a full-year revenue of €20.7 billion, reflecting an increase of 3.5% year-over-year, while operating profit rose by 8% to €2.7 billion. The company recorded a free cash flow of more than €1.8 billion, in addition to a new €1 billion share buyback program.
According to Insider Monkey’s fourth quarter database, Coca-Cola Europacific Partners PLC (NASDAQ:CCEP) was part of 24 hedge fund portfolios, compared to 32 in the prior quarter. Brandon Haley’s Holocene Advisors was the leading stakeholder of the company, with 3.92 million shares valued at $301.3 million.