We recently published a list of 10 Best European Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Shell plc (NYSE:SHEL) stands against other best European stocks to buy according to billionaires.
On March 12, European markets opened on a high note, surging after the European Union revealed its retaliatory tariffs on U.S. steel and aluminum imports. While U.S. indices have been struggling with continued uncertainty, European equities gained momentum, driven by geopolitical developments, fiscal stimulus, and shifting investor sentiment. With renewed commitments to defense spending, easing inflation, and a more attractive valuation landscape compared to U.S. stocks, European markets are increasingly capturing investor interest. The big question now is whether this momentum is here to stay or if Europe is simply enjoying a momentary surge.
A primary driver of Europe’s market rally has been increased defense spending, as reported by World Economic Forum (WEF). Following a Ukraine peace summit hosted by UK Prime Minister Keir Starmer, European leaders pledged to boost military investments, propelling the broad measure of the European equity market up 1% and the aerospace and defense index by 6.5%. Germany’s blue-chip index also climbed 0.9% amid reports of a potential defense fund. CNBC reported a recent upgrade by HSBC of European stocks to “Overweight” while the downgrading of U.S. equities to “Neutral” showcases a fundamental shift in economic narratives and a game-changing fiscal stimulus in the eurozone.
According to CNBC, Eurozone inflation eased to 2.4% in February, aligning with expectations ahead of the European Central Bank’s upcoming policy decision. The euro also rebounded, rising nearly 1% against the dollar after earlier declines. Meanwhile, discussions around a €500 billion infrastructure investment plan in Germany have fueled speculation about a broader fiscal expansion, further enhancing Europe’s market appeal.
U.S. markets have struggled with volatility as trade tensions and economic uncertainties persist. The Magnificent Seven tech stocks have lost momentum, and recent economic projections indicate a potential slowdown. President Donald Trump’s tariff policies continue to introduce unpredictability, prompting investors to seek alternatives. European stocks, offering lower valuations and higher dividend yields, have emerged as an attractive option against this backdrop. With the recent Purchasing Managers’ Index (PMI) showing the eurozone’s manufacturing contraction easing to its mildest level in two years, investor confidence in the region has strengthened.
However, risks remain. The recently brokered U.S.-Ukraine ceasefire agreement could shift geopolitical dynamics. Additionally, European equities have faced headwinds, with a recent sell-off in tech stocks and concerns about Germany’s fiscal policies. While Europe’s market rally is notable, its long-term trajectory will depend on economic resilience, policy decisions, and global trade developments.
With billionaire investors increasingly reallocating capital toward European stocks, the region is experiencing a renewed investment focus. The recent UBS Billionaire Ambitions Report finds that 43% of billionaires plan to expand their investments in real estate, while 42% are increasing exposure to developed market equities. Simultaneously, they are allocating more capital to perceived safe-haven assets. Whether this marks a fundamental shift or a temporary rebalancing remains to be seen, but for now, Europe is firmly in the spotlight. By using key themes from billionaire portfolios, investment strategies can be streamlined for long-term resilience.
A gas refinery lit up against the night sky, showing the scale of the company’s petrochemical operations.
Our Methodology
We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of the best European stocks to invest in according to billionaires. We searched European companies that trade on the NASDAQ and NYSE stock exchanges and picked the 10 best stocks to buy based on the highest number of billionaire investors, updated as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks. These billionaires are founders or managers of some of the world’s leading hedge funds and companies.
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).
Shell plc (NYSE:SHEL)
Number of Billionaires: 14
Shell plc (NYSE:SHEL) is a global energy and petrochemical company headquartered in London, operating across more than 70 countries. Its diverse portfolio includes the exploration and production of oil and natural gas, the manufacturing and marketing of chemicals and petrochemicals, and a growing presence in renewable energy solutions.
Shell plc (NYSE:SHEL) reported adjusted earnings of $3.66 billion for the latest quarter, falling short of the anticipated $4.10 billion, primarily due to lower oil prices and refining margins. Despite this, the company announced a $3.5 billion share buyback program, reflecting robust cash-flow generation. Additionally, Shell increased its dividend by 4% to $0.358 per share. Financially, the company’s full-year 2024 results showed a decline in sales to $284.3 billion from $316.6 billion the previous year, with net income decreasing to $16.1 billion from $19.4 billion.
Shell plc (NYSE:SHEL) is reportedly considering the sale of its chemical assets in both Europe and the United States, including the Deer Park facility near Houston. This potential divestment is part of a broader review of Shell’s chemical operations following significant workforce reductions and recent financial challenges in its chemicals business.
Shell plc (NYSE:SHEL) has faced some headwinds, with its share price declining by 2.7% over the past month. However, the company’s long-term fundamentals remain strong. Over the past five years, Shell has delivered an impressive 175.5% return, reflecting its ability to generate consistent revenue growth. Analysts remain overwhelmingly bullish on the stock, with 90% of the 31 analysts covering Shell assigning it a “Buy” rating.
Overall, SHEL ranks 4th on our list of best European stocks to buy according to billionaires. While we acknowledge the potential for SHEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SHEL but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
