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.
9. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 25
YTD Share Price Performance as of April 11: 13.77%
Next on our list of the best performing stocks in Europe is British American Tobacco p.l.c. (NYSE:BTI), a London-based manufacturer and distributor of tobacco and nicotine products. On February 10, Citi maintained a Buy rating on BTI and raised the price target to £36 from £32. This comes after a positive trading update in December, which alleviated concerns about the company’s full-year performance. Citi analysts expect modest organic growth in 2024 and 2025 from BTI, with a gradual strength in results by 2026. Despite the stock already performing well this year, Citi sees more upside due to earnings upgrades, a possible slowdown in the US cigarette declines, stricter enforcement on illegal vapes, and a potential increase in share buybacks.
British American Tobacco p.l.c. (NYSE:BTI)’s 2024 financial results came in according to its guidance. The company recorded 3.6 million new adult users of smokeless products, making up 17.5% of revenue. In the second half of 2024, the performance revved up because of investments in the United States and higher product innovation. Although 2025 results stand to be affected by headwinds in Bangladesh and Australia, BTI is confident about delivering 3-5% revenue growth and 4-6% profit growth by 2026. The company also plans £900 million in share repurchases in 2025.
According to Insider Monkey’s Q4 database, 25 hedge funds held long positions in British American Tobacco p.l.c. (NYSE:BTI), compared to 24 funds in the prior quarter. William B. Gray’s Orbis Investment Management was the biggest stakeholder of the company, with nearly 10 million shares worth $362.5 million.
8. National Grid plc (NYSE:NGG)
Number of Hedge Fund Holders: 17
YTD Share Price Performance as of April 11: 14.31%
National Grid plc (NYSE:NGG) is a London-based company involved in electricity and gas transmission and distribution in the United States and the United Kingdom. The company develops energy interconnectors, LNG imports, and renewables through its National Grid Ventures arm. It has additional property and insurance operations in the UK as well. National Grid plc (NYSE:NGG) is one of the best performing stocks in Europe so far this year, with the shares up 14.3% year-to-date as of April 11.
On March 17, Bernstein analyst Deepa Venkateswaran upgraded National Grid plc (NYSE:NGG) to Outperform with a price target of £11.20, up from £10.40. The analyst noted the stock’s undervaluation compared to its US and European counterparts, as well as strong growth potential and returns in both its US and UK operations.
National Grid plc (NYSE:NGG) submitted plans for the Sea Link project on March 28, which is a 138 km mostly offshore electricity connection between Kent and Suffolk. As part of The Great Grid Upgrade, it aims to strengthen energy security and provide more clean power as demand increases. After several rounds of public consultation since 2022, National Grid says community feedback helped shape the final plans. The proposal will now go through the Nationally Significant Infrastructure Project (NSIP) process, with more chances for public input during the next phase.
Among the hedge funds tracked by Insider Monkey, 17 funds reported owning stakes in National Grid plc (NYSE:NGG) at the end of Q4 2024, compared to 19 funds in the earlier quarter. Jim Simons’ Renaissance Technologies was the biggest stakeholder of the company, with 3.1 million shares worth $185.2 million.
7. ArcelorMittal S.A. (NYSE:MT)
Number of Hedge Fund Holders: 18
YTD Share Price Performance as of April 11: 17.50%
ArcelorMittal S.A. (NYSE:MT) was founded in 1976 and is headquartered in Luxembourg. It is a global steel and mining company that produces flat steel products like coils, sheets, and tinplate; long steel products such as bars, wire rods, rails, and structural sections; and both seamless and welded pipes and tubes. It also supplies raw materials like iron ore and coking coal, which are used in the automotive, construction, and energy industries. ArcelorMittal S.A. (NYSE:MT)’s stock has climbed 17.5% year-to-date as of April 11, making it one of the best performing stocks in Europe.
On April 10, Goldman Sachs analyst Matt Greene upgraded ArcelorMittal S.A. (NYSE:MT) to Buy from Neutral and set a price target of €29, up from €26.10. Greene pointed to declining iron ore and coal prices, which are expected to cut production costs and support profit margins, even if steel prices don’t go up. Goldman Sachs also expects an oversupply of major raw materials, adding to the optimistic outlook.
ArcelorMittal S.A. (NYSE:MT), on April 7, initiated a new share buyback program after concluding its last 85 million share repurchase on April 2, 2025. The new program will run in phases through May 2030, starting with an initial tranche of up to 10 million shares. The actual number of shares repurchased will depend on how much free cash flow the company generates after paying dividends, along with market conditions and shareholder approval.
According to Insider Monkey’s fourth quarter database, 18 hedge funds held bullish positions in ArcelorMittal S.A. (NYSE:MT), compared to 14 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors was the biggest stakeholder of the company, with over 2 million shares valued at $48.2 million.
6. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 101
YTD Share Price Performance as of April 11: 18.76%
Based in Luxembourg, Spotify Technology S.A. (NYSE:SPOT) is a leading player in audio streaming. The company supports audio streaming through premium and ad-supported tiers, in addition to handling marketing, distribution, and customer support across its platform. It is one of the best performing stocks in Europe, with shares rising nearly 19% year-to-date as of April 11.
On April 9, KeyBanc Capital Markets assigned an Overweight rating on Spotify Technology S.A. (NYSE:SPOT) but trimmed the price target to $625 from $675. The revised target indicates marginally lower revenue and free cash flow forecasts, along with a more cautious valuation approach. Still, analysts see a lot of upside due to Spotify’s improved advertising tech and its partner program, which could bring in more creators, especially in a weaker economy.
In 2024, Spotify Technology S.A. (NYSE:SPOT) paid out a record $10 billion in royalties, up from just $1 billion a decade ago. Around 1,500 artists earned more than $1 million in 2024 through the platform, and the number of artists generating royalties has tripled since 2017.
According to Insider Monkey’s fourth quarter database, 101 hedge funds held long positions in Spotify Technology S.A. (NYSE:SPOT), up from 98 funds in the preceding quarter. Rajiv Jain’s GQG Partners was the largest stakeholder of the company, with 1.78 million shares valued at over $800 million.
5. Prudential plc (NYSE:PUK)
Number of Hedge Fund Holders: 10
YTD Share Price Performance as of April 11: 24.46%
Prudential plc (NYSE:PUK) is a multinational insurance and asset management company that is headquartered in both London and Hong Kong. Some of PUK’s services include general insurance, health insurance, vehicle insurance, travel insurance, home insurance, and life insurance. It is one of the best performing stocks in Europe so far in 2025.
On February 13, UBS analysts maintained a Buy rating on Prudential plc (NYSE:PUK) with a price target of £12.70 after the announcement that it might publicly list its Indian asset management business, IPAMC. This could unlock significant value, with proceeds potentially going to shareholders.
For full-year 2024, Prudential plc (NYSE:PUK)’s new business profit increased 11% to $3.08 billion. While growth was flat for the year due to the broader economy, PUK recorded a 10% rise in adjusted operating profit to $3.13 billion, and EPS climbed 8% to $0.897. The company concluded a $1.05 billion share repurchase plan and lifted its dividend by 13% to $0.2313 per share, bringing total shareholder returns for the year to $1.4 billion.
According to Insider Monkey’s fourth quarter database, 10 hedge funds reported owning stakes in Prudential plc (NYSE:PUK), compared to 12 funds in the preceding quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital was the biggest stakeholder of the company, with 1.05 million shares worth $16.75 million.
4. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders: 31
YTD Share Price Performance as of April 11: 25.22%
Anheuser-Busch InBev SA/NV (NYSE:BUD) ranks 4th on our list of the best performing stocks in Europe. BUD was founded in 1366 and is headquartered in Leuven, Belgium. It is a global beverage company known for its iconic beer brands like Budweiser, Corona, and Stella Artois. The company also offers spirits-based drinks and non-alcoholic beverages.
On April 4, Berenberg Bank started coverage of Anheuser-Busch InBev SA/NV (NYSE:BUD) with a Buy rating and a price target of €72. According to Berenberg, the company’s shift to lower-margin ready-to-drink beverages and hard seltzers adds volatility and risk. Still, its strong 7% ROIC and a perfect Piotroski Score of 9 reflect strong financial health, driven by a focus on organic growth and avoiding large acquisitions over the past decade.
In 2024, AB InBev achieved a record revenue of $59.8 billion, with 75% of its markets exhibiting growth. Despite weaker volumes in China and Argentina, the company gained or held market share in two-thirds of its markets and grew volumes elsewhere by nearly 1%. EBITDA came in at roughly $21 billion, free cash flow increased by $2.5 billion from last year, and the company reduced its net debt-to-EBITDA below 3x for the first time since 2015. AB InBev is strengthening brand investments and has raised its annual dividend by 22%.
According to Insider Monkey’s fourth quarter database, 31 hedge funds were bullish on Anheuser-Busch InBev SA/NV (NYSE:BUD), compared to 26 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management was the biggest stakeholder of the company, with 10 million shares valued at nearly $505 million.
3. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Number of Hedge Fund Holders: 15
YTD Share Price Performance as of April 11: 30.65%
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a German financial services company operating through four main segments – Corporate Bank, Investment Bank, Private Bank, and Asset Management. It is one of the best performing stocks from Europe so far in 2025, with shares up nearly 31% as of April 11.
RBC Capital’s analysts reiterated an Outperform rating on Deutsche Bank Aktiengesellschaft (NYSE:DB) on April 8 but reduced the target price to €23 from €26. RBC Capital sees solid Q1 2025 results for Deutsche Bank but has trimmed its price target due to a cautious outlook on future profits. The investment firm expects higher trading revenue but weaker investment banking fees and larger loan losses. A 2025 share buyback seems unlikely as well.
The company made over €30 billion in revenue during 2024, and despite €1.7 billion in legal costs, DB is staying on track due to smart investments in growth, tech, and efficiency. The bank is controlling costs steadily and expects to bring its cost-income ratio below 65% by the end of 2025. The company also initiated a €750 million share buyback along with a $0.68 dividend for 2024. That brings total shareholder returns for the year to €2.1 billion, with a bigger goal of exceeding €8 billion.
According to Insider Monkey’s fourth quarter database, 15 hedge funds reported owning stakes in Deutsche Bank Aktiengesellschaft (NYSE:DB), up from 12 funds in the prior quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is a prominent stakeholder of the company, with 15 million shares valued at nearly $259 million.
2. Lloyds Banking Group plc (NYSE:LYG)
Number of Hedge Fund Holders: 11
YTD Share Price Performance as of April 11: 32.96%
Lloyds Banking Group plc (NYSE:LYG) is a UK-based financial services provider that operates through three business segments – Retail, Commercial Banking, and Insurance, Pensions & Investments. On March 4, Morgan Stanley upgraded Lloyds stock from Equal Weight to Overweight and raised the price target to £0.90 from £0.70. Morgan Stanley remarked that Lloyds’ recent stock rise is a bounce-back from last year’s struggles, mainly due to slower growth in net interest income (NII) and the ongoing Motor Finance litigation. They expect the company to catch up on NII in the next couple of years and see more evident progress on the litigation by mid-year. LYG is one of the best performing stocks from Europe.
In 2024, Lloyds Banking Group plc (NYSE:LYG) did well financially, with income growth driven by a higher banking net interest margin and other income. The bank kept costs under control and maintained strong asset quality, allowing for £3.6 billion in shareholder distributions for the year. LYG is building on current momentum and can potentially generate more than £1.5 billion in extra income by 2026. The company exceeded its 2024 targets, bringing in £0.8 billion in additional revenue and saving £1.2 billion in costs.
According to Insider Monkey’s fourth quarter database, 11 hedge funds were long Lloyds Banking Group plc (NYSE:LYG), compared to 10 funds in the prior quarter. Israel Englander’s Millennium Management was a prominent stakeholder of the company, with 7 million shares valued at $72.5 million.
1. Banco Santander, S.A. (NYSE:SAN)
Number of Hedge Fund Holders: 17
YTD Share Price Performance as of April 11: 44.17%
Banco Santander, S.A. (NYSE:SAN) ranks first on our list of the best performing stocks from Europe so far this year. It is a global Spanish bank offering retail and commercial banking, investment banking, wealth management, and digital payments. On March 10, Citi analysts maintained a Buy rating on SAN and lifted the price target from €6.6 to €7.2. According to the analysts, the bank’s earnings got a boost from solid performance in Spain, the US, Poland, and its Consumer & Corporate division. This offsets the softer results in Brazil and the UK. Analysts also now raised their earnings forecasts by 6% for 2025-2027.
In 2024, Banco Santander, S.A. (NYSE:SAN) recorded a €12.6 billion profit, up 14% year-over-year, driven by underlying revenue growth and better risk management. Customer funds grew faster than lending, and both net interest and fee income were up 8%, strengthened by higher customer activity. The bank’s capital position also improved, with a CET1 ratio of 12.8%. Throughout the year, SAN returned over €3 billion to shareholders through dividends and a €1.5 billion share buyback, up 17% compared to 2023. Santander added 8 million customers in 2024, bringing the total to 173 million, with a 9% rise in transactions per user compared to 2023.
According to Insider Monkey’s fourth quarter database, 17 hedge funds were bullish on Banco Santander, S.A. (NYSE:SAN), compared to 15 funds in the last quarter. Jim Simons’ Renaissance Technologies was the biggest stakeholder of the company, with 659,627 shares valued at $12.4 million.
Overall, SAN ranks first among the 11 Top Performing European Stocks So Far In 2025. While we acknowledge the potential of European stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SAN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
