In this article, we will take a look at the 15 top performing European stocks so far in 2023. To see more such companies, go directly to 5 Top Performing European Stocks So Far in 2023.
The Bank of England on March 23 raised its benchmark lending rate by a quarter point to 4.25%, the highest since 2008. The bank followed the Federal Reserve of the US which also went ahead with a 25 bps rate hike despite the banking crisis. The latest hikes from central banks have defied analysts’ expectations for a pause in rate hikes as they were expecting the latest bank failures to be alarming enough to force the central banks to put brakes on monetary tightening to save the financial system. The Bank of England indicated confidence in the banking system and said inflation remains the biggest risk in the current environment. The BOE governor Andrew Bailey said in a letter to the Treasury that “price stability is an essential pre-requisite to achieve this objective in all parts of the United Kingdom and sectors of the economy.” BOE also said it is open to further rate hikes to control inflation if needed.
The European stock market experienced its fair share of optimistic euphoria during the start of the year. Analysts and investors were expecting the inflation to come under control this year and central banks to stop their interest rate hikes. But some were calling the optimism short-lived and were already foreseeing the bearish trends in the market. According to a Bloomberg report, Goldman equity strategist Sharon Bell said in January that she expected “weak returns” in the European stock market “even though we have raised our price targets” for Stoxx 600 Index.
Bloomberg also mentioned its survey of 19 market forecasters in its January 20 report. The survey said the Stoxx 600 Index will end 2023 at 452 points.
In November 2022, Goldman Sachs published its outlook report for 2023 for Europe. The firm reiterated its “long-held view” that the energy crisis will put the continent into recession this winter. However, Goldman Sachs at the time that it was seeing a “shallower recession as the hard data have remained surprisingly resilient, the rebalancing of the gas market has reduced the risk of energy rationing and governments have provided significant fiscal support.”
Goldman Sachs in its report said it believes the Euro area economy will contract by only 0.7% from the last quarter of 2022 to the second quarter of 2023.
Luis Louro / shutterstock.com
Our Methodology
For this article, we first used the Finviz stock screener to list down European stocks which have posted gains in 2023 through March 23. From the resultant dataset we picked stocks with the highest stock price gains in 2023 through March 23. We preferred stocks trading on US stock exchanges. The list is ranked in ascending order of percentage gains of stocks.
Top Performing European Stocks So Far in 2023
15. STMicroelectronics N.V. (NYSE:STM)
YTD Gains as of March 23: 39%
Semiconductor company STMicroelectronics N.V. (NYSE:STM) ranks 15th in our list of the top performing European stocks so far in 2023.
As of the end of the fourth quarter of 2022, 18 hedge funds tracked by Insider Monkey reported owning stakes in STMicroelectronics N.V. (NYSE:STM). The total value of these stakes was about $249 million. The biggest stakeholder of STMicroelectronics N.V. (NYSE:STM) was Steve Cohen’s Point72 Asset Management which owns an $87 million stake in the company.
14. Millicom International Cellular S.A. (NASDAQ:TIGO)
YTD Gains as of March 23: 40%
Luxembourg-based telecom company Millicom International Cellular S.A. (NASDAQ:TIGO) ranks 14th in our list of the top performing European stocks so far in 2023. Earlier this year, Millicom International Cellular S.A. (NASDAQ:TIGO) entered into talks with PE firm Apollo Global Management and Claure Group for a potential sale.
According to media reports, Millicom International Cellular S.A. (NASDAQ:TIGO) was being valued at about $9 billion, including debt, by interested parties.
As of the end of the fourth quarter of 2022, 10 hedge funds tracked by Insider Monkey had stakes in Millicom International Cellular S.A. (NASDAQ:TIGO). The total value of these stakes was about $30 million. The biggest hedge fund stakeholder of Millicom International Cellular S.A. (NASDAQ:TIGO) was Mario Gabelli’s GAMCO Investors which owns a $12 million stake in the company. The second biggest stakeholder of Millicom International Cellular S.A. (NASDAQ:TIGO) was Ray Dalio’s Bridgewater Associates which had a $1.1 million stake in the firm.
Bonhoeffer Capital Management made the following comment about Millicom International Cellular S.A. (NASDAQ:TIGO) in its Q4 2022 investor letter:
“Millicom International Cellular S.A. (NASDAQ:TIGO), a Latin American telecommunications firm that provides high-speed internet, cable, and wireless to nine markets, has become a special situation, as two strategic investors are ether bidding for the entire firm or purchasing large stakes in Millicom. Millicom is also in the process of separating both its towers business (about 10,000 towers) and its TIGO Money business for either sale or co-investment. Based upon historical tower sales by Millicom and comparable transactions and trading prices for Latin American tower businesses, we think the towers are worth about $1.4 billion or $8.00 per share. Given the current price of Millicom, the stub has an implied value of about 11.6x 2022 FCF or 2.9x projected 2026 FCF. Given the liquidity from recent rights offering, Millicom’s debt level is low, and the company will be in the position to buy back shares next year while continuing to invest in its fiber rollout. There is additional value outside the core business in Millicom’s data centers and TIGO Money (see our case study in the Q3 2021 letter). Given a conservative projected EPS growth of 10% per year (vs. the 25% projected FCF growth rate), Millicom should trade at 22x earnings using Graham’s formula of 8.5 + 2 * growth rate. Applying this multiple results in about a 2x return today and a 7x return in five years. Below is an updated value of Millicom’s equity given the rights offering, management’s current forecast to 2024, and no value for Millicom’s data centers or TIGO Money.…” (Click here to read the full text)
13. Opera Limited (NASDAQ:OPRA)
YTD Gains as of March 23: 42%
Norway-based web browser company Opera Limited (NASDAQ:OPRA) ranks 13th in our list of the top performing European stocks so far in 2023. Opera Limited (NASDAQ:OPRA) is up 42% year to date through March 23. In February, Opera Limited (NASDAQ:OPRA) posted its Q4 results. Adjusted EPADS in the quarter totaled $0.27, beating estimates by $0.07. Revenue in the period increased by 32.7% on a YoY basis to a total of $96.27 million, surpassing estimates by $6.03 million.
At the end of the fourth quarter of 2022, 6 hedge funds tracked by Insider Monkey had stakes in Opera Limited (NASDAQ:OPRA).
Fairlight Capital made the following comment about Opera Limited (NASDAQ:OPRA) in its Q4 2022 investor letter:
“In addition to the bank analysis above we have also started to build a new position in a US-listed small-cap tech stock Opera Limited (NASDAQ:OPRA). This is a business where the revenue growth picture and earnings over the last 12-18 months have been ciphered by temporarily inflated costs. But the growth in revenue is now beginning to show through and should become more obvious in the next few quarters. This company also has a significant amount of cash, cash equivalents and marketable securities.
There have also been recent developments relating to the above stock occurring during the writing of this letter. At the beginning of 2023 the stock was trading in the $6.00 area at a market cap of $550 million, but on January 12 the company announced the distribution of a $0.80 (per ADS) dividend. The stock has re-rated somewhat to $6.90, but we believe still represents great value…” (Click here to read the full text)
12. Argo Blockchain plc (NASDAQ:ARBK)
YTD Gains as of March 23: 43%
UK-based Argo Blockchain plc (NASDAQ:ARBK) is involved in crypto mining business. Argo Blockchain plc (NASDAQ:ARBK) has gained about 43% year to date through March 23. Earlier this month, Argo Blockchain plc (NASDAQ:ARBK) announced that it mined 162 bitcoins (BTC-USD) in February, which was down from 168 bitcoins mined in January 2023. However, Argo Blockchain plc (NASDAQ:ARBK)’s daily bitcoin production in the month increased to 5.7 BTC versus 5.4 BTC in the previous month.
Mining revenue in February 2023 came in at $3.76 million, up from $3.42 million in January.
11. Borr Drilling Limited (NYSE:BORR)
YTD Gains as of March 23: 46%
Borr Drilling Limited (NYSE:BORR) is an offshore drilling contractor to the oil and gas industry worldwide. Borr Drilling Limited (NYSE:BORR)’s financial headquarter is located in London, United Kingdom. Borr Drilling Limited (NYSE:BORR) has gained about 46% year to date through March 23. In February, Borr Drilling Limited (NYSE:BORR) posted GAAP EPS of -$0.09 for the fourth quarter. Revenue in the period increased by about 115% on a YoY basis to $148.6 million.
10. Mynaric AG (NASDAQ:MYNA)
YTD Gains as of March 23: 52%
Germany’s Mynaric AG (NASDAQ:MYNA) makes laser communication equipment for airborne and spaceborne communication networks.
In October 2022, Mynaric AG (NASDAQ:MYNA) upped its full-year guidance for the optical communications terminal backlog to over 250 units. The guidance raise was driven by recent contract wins especially in the government sector.
Mynaric AG (NASDAQ:MYNA) also reaffirmed its guidance of over €20M cash-in from customer contracts in 2022.
Out of the hedge funds tracked by Insider Monkey, 3 funds had stakes in Mynaric AG (NASDAQ:MYNA) as of the end of the fourth quarter.
9. Orion Engineered Carbons S.A. (NYSE:OEC)
YTD Gains as of March 23: 54%
Luxembourg-based Orion Engineered Carbons S.A. (NYSE:OEC) makes and sells carbon black. Orion Engineered Carbons S.A. (NYSE:OEC) has gained about 54% year to date in 2023.
Earlier this month, Orion Engineered Carbons S.A. (NYSE:OEC) declared a quarterly dividend of $0.0207 per share, in line with previous.
In February, Orion Engineered Carbons S.A. (NYSE:OEC) posted Q4 results. Adjusted EPS in the period came in at $0.26, beating estimates by $0.09. Revenue in the quarter jumped 17.7% on a YoY basis to reach $462.1 million.
Choice Equities made the following comment about Orion Engineered Carbons S.A. (NYSE:OEC) in its Q3 2022 investor letter:
“Orion Engineered Carbons S.A. (NYSE:OEC) – Shares of Orion Engineered Carbons remain attractive at recent market prices. Its rubber black segment, which accounts for 45% of the firm’s total EBITDA continues to benefit from a market in structural supply deficit. OEC’s specialty business, which provides conductive materials for EV batteries and represents 55% of total EBITDA at higher margins, is expected to see significant growth in 2023 as three new plants in Italy, China, and Texas are projected to start producing at full capacity. As we have experienced with other holdings, the company continues to trade at a historically low valuation in comparison to its past trading range, most recently trading at ~6x PE and ~5x EBITDA, a valuation which appears quite low relative to its likely future cash flows.”
8. Spotify Technology S.A. (NYSE:SPOT)
YTD Gains as of March 23: 56%
Sweden-based Spotify Technology S.A. (NYSE:SPOT) shares have gained about 56% in 2023 through March 23. Spotify Technology S.A. (NYSE:SPOT) was recently upgraded by investment firm Guggenheim Securities to Buy from Neutral. The firm is bullish on the global music market. Guggenheim Securities gave a $155 price target to Spotify Technology S.A. (NYSE:SPOT).
Out of the 943 hedge funds tracked by Insider Monkey, 46 hedge funds had stakes in Spotify Technology S.A. (NYSE:SPOT). The total value of these stakes was $767 million. The biggest stakeholder of Spotify Technology S.A. (NYSE:SPOT) was John Overdeck and David Siegel’s Two Sigma Advisors which has an $86 million stake in the company.
Baron Partners Fund made the following comment about Spotify Technology S.A. (NYSE:SPOT) in its Q4 2022 investor letter:
“Spotify Technology S.A. (NYSE:SPOT) is a leading global digital music service offering on-demand audio streaming through paid premium subscriptions and an ad-supported model. Shares of Spotify were down on weakness in the company’s fourth quarter gross margin guide. We still view Spotify as a long-term winner in music streaming with potential to reach more than one billion active monthly users. Subscriber additions remain strong, price increases seem likely, and cost discipline has become a bigger focus.”
7. Addex Therapeutics Ltd (NASDAQ:ADXN)
YTD Gains as of March 23: 63%
Another Swiss biotech company in our list of the top performing European stocks so far in 2023, Addex Therapeutics Ltd (NASDAQ:ADXN) is working on small-molecule pharmaceutical products for central nervous system (CNS) disorders.
In December, ADXN shares jumped after Addex Therapeutics (NASDAQ:ADXN) and Indivior (OTCPK:INVVY) (OTCPK:IZQVF) extended their research term until June 30, 2023 of their collaboration to develop therapies for substance use disorder.
In February, Addex Therapeutics Ltd (NASDAQ:ADXN) regained compliance with the minimum bid price requirement of $1/per ADS share under Nasdaq Listing Rule.
2 hedge funds tracked by Insider Monkey had stakes in this European company at the end of the last quarter of 2022. The most notable stakeholder of Addex Therapeutics Ltd (NASDAQ:ADXN) was Ken Griffin’s Citadel Investment Group which had a $26,000 stake in the company.
6. NuCana plc (NASDAQ:NCNA)
YTD Gains as of March 23: 68%
UK-based NuCana plc (NASDAQ:NCNA) is a biopharmaceutical company involved in the production of treatments for cancer. NuCana plc (NASDAQ:NCNA) is up 68% in 2023 through March 23. In November 2023, NuCana plc (NASDAQ:NCNA) posted its Q3 results.
GAAP EPS in the third quarter came in at -£0.09. As of the end of the third quarter, cash and cash equivalents of NuCana plc (NASDAQ:NCNA) came in at £50.8 million compared to £46.5 million as of the end of the second quarter.
At the end of the fourth quarter of 2022, 5 hedge funds tracked by Insider Monkey reported having stakes in NuCana plc (NASDAQ:NCNA). The total value of these stakes was $328,000. The biggest stakeholder of NuCana plc (NASDAQ:NCNA) was Citadel Investment Group which had a $75,082 stake in the company.
Click to continue reading and see 5 Top Performing European Stocks So Far in 2023.
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Disclosure: None. 15 Top Performing European Stocks So Far in 2023 is originally published on Insider Monkey.
