Zinger Key Points
- US stocks have recovered from their tariff-induced drop, but European stocks are still ahead. It's not too late to join the stock rally.
- These five European stocks haven't rallied as much as their peers yet, are topping Benzinga Edge's Value rankings.
- Get prepared for the Fed’s next move—live with Matt Maley on Wednesday, May 7 at 6 PM ET. Reserve your free spot now.
Despite last week’s market rally, which saw US markets recover losses since President Trump’s tariff announcement in early April, American stocks are still underperforming their European counterparts.
The S&P 500 has rallied 12.5% since Trump's reciprocal tariffs were paused, but the Vanguard Europe ETF VGK is up over 18% in the same timeframe. Despite the ‘Sell America' trade losing some steam, investors still seem to prefer European equities to US equities.
Of course, this surge in European stocks has left most big-name European investments at high valuations. But that doesn’t mean there are no more good stocks to buy across the Atlantic.
Today, we’re looking at five European stocks that haven’t rallied as much as their peers but are still undervalued and have room to run.
Each one ranks high on Benzinga Edge’s Value rankings, too.
These firms all have a Price-to-Earnings (P/E) ratio under 15, a minimum Benzinga Edge Value score of 85, and sales growth of at least 10% over the last five years. Note that many of these companies trade in the US using securities like American Depository Receipts (ADRs), which function as proxies to international equities but have some differences investors should familiarize themselves with before buying.
Equinor ASA
Benzinga Edge Value Score: 93.23
Equinor EQNR is a fully integrated oil and gas company based in Norway. It has a $63.6 billion market cap and a P/E ratio of 7.31. The Norwegian government owns a 67% stake in the firm, but its shares trade on the New York Stock Exchange and European exchanges. Equinor mines for oil on the Norwegian Continental Shelf and also operates solar, wind, and natural gas refineries.
Equinor’s revenue has expanded for the last three quarters, the first time it has seen revenue growth in three consecutive quarters since 2022. Despite the recent slowdown, Equinor has grown sales at a 21% clip over the last five years, and its dividend currently yields over 6%. A recent earnings miss caused the stock to drop, but the decline ended at the same level as a previous drawdown, indicating a potential bottom and possible entry point.
Adecoagro SA
Benzinga Edge Value Score: 91.79
With a ticker like that, you can probably guess the industry—Adecoagro AGRO is a small-cap agricultural firm headquartered in Luxembourg with operations primarily in South America. Although its market cap is under $1 billion, it posted $1.45 billion in revenue over the last 12 months and has grown sales by 13% in the previous five years.
AGRO shares have a P/E ratio of 9.49 and trade at just 0.60 times sales, but recent downgrades from Morgan Stanley and Bank of America sent the stock plunging under $9 per share. It is trading near its 52-week low, but the Relative Strength Index (RSI) is in oversold territory, indicating this selloff might be petering out.
Global Ship Lease Inc.
Benzinga Edge Value Score: 96.89
Global Ship Lease GSL is a Greek-based container shipping line with over 60 ships and a market cap of around $760 million. Most of the company's business comes from MAERSK charters, and its sales have grown by 24% over the last five years. It currently trades with a P/E ratio of just 2.28 with a Price-to-Book value of 0.52.
Investing in a shipping company seemed risky once the reciprocal tariff chart was released, and GSL shares plummeted in the days following Trump's Rose Garden announcement. But the stock has rebounded in the weeks following the pause, including a rally that saw eight green candles in nine days. GSL has boosted revenue in six of the last seven quarters as well. Its profit margins are approaching 50%. Jeffries is the only research firm with a rating on the stock, but it’s a Buy with a price target of $29, indicating an upside of over 35%.
Tenaris SA
Benzinga Edge Value Score: 87.64
Tenaris TS resides in the energy sector and produces goods used in oil and gas well construction. The company is based in Luxembourg but has operations in the United States, Argentina, Mexico, and Italy. Tenaris builds some of the most resilient tubular goods used in deep-water and horizontal shale wells.
Tenaris is a large-cap firm in the oil and gas space with an $18 billion market cap and $12 billion in annual sales. The company has grown sales by 17.7% over the last five years, but revenue has declined recently. Profit margins have dipped from 26% in December 2023 to 15% in the most recent report in March. The stock fell below the 50-day and 200-day SMAs following the Rose Garden press conference, but the steep decline triggered an oversold reading on the RSI, and shares currently trade at just 9.5 times forward earnings.
Stellantis NV
Benzinga Edge Value Score: 97.56
A car manufacturer like Stellantis STLA might seem like a bold investment choice in a trade war. The company makes popular American brands like Dodge, Jeep, and Ram. However, only 26% of Stellantis's 2024 sales occurred in North America, and the company does nearly 50% of its business in Europe, providing some level of tariff protection. Stellantis made more than $169 billion in sales over the last 12 months with income of $5.92 billion.
Car manufacturers like Stellantis have been some of the hardest hit stocks during the tariff tumult; its shares are down more than 28% year-to-date. However, it might be an opportune time to take a position in the stock as Stellantis is a large-cap company with a significant global presence. The company grew revenue by 33.6% over the last five years and trades at its cheapest valuation in years at just 4.8 times earnings and 0.16 times sales. The stock also pays a 6% dividend yield with a 36% dividend payout ratio, offering income as well as stock price appreciation. And with the RSI triggering an oversold signal, a momentum reversal could be coming soon.
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