European equities have performed strongly over the past year.
The closely followed Euro Stoxx 50 index was up about 20% in the past 12 months, only slightly lagging the gains of the S&P 500 in the same period. Some select stocks have performed even better, putting up returns that put U.S. tech stocks to shame.
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And looking forward, many investors are considering pulling away from the U.S. amid shifting trade dynamics, record inflation at home and the general importance of diversification in providing consistent long-term returns.
The European stocks on this list represent major players in key industries with significant operations as well as strong near-term performance. For investors looking to Europe for stock market opportunities, this list of large and familiar companies is a great place to start:
| Stock | Market capitalization | Headquarters |
| ArcelorMittal SA (ticker: MT) | $46.8 billion | Luxembourg |
| Arm Holdings PLC (ARM) | $379.8 billion | United Kingdom |
| Banco Santander SA (SAN) | $191.8 billion | Spain |
| LyondellBasell Industries NV (LYB) | $18 billion | The Netherlands |
| Lloyds Banking Group (LYG) | $82 billion | United Kingdom |
| Nokia Oyj (NOK) | $77.5 billion | Finland |
| Novartis AG (NVS) | $293 billion | Switzerland |
ArcelorMittal SA (MT)
ArcelorMittal is one of the world’s largest integrated steel producers and mining companies. Steel remains a foundational material for modern economies, and MT occupies an important position within global supply chains. Most recently, it has been benefiting from its strategic role in onshore production for Europe. The investment case is clear considering shares have doubled over the past 12 months thanks to regional demand driven by global trade tensions, tariffs and supply chain disruptions that have reshaped the industry. Steel prices can admittedly be volatile, as they are tied to both commodity prices in metal markets as well as cyclical demand. However, the company’s vertical integration and broad customer base on its home continent may help moderate some of that cyclicality.
Arm Holdings PLC (ARM)
Chipmakers have been booming lately thanks to the megatrend of artificial intelligence, and Arm has been along for the ride, with 180% returns over the past 12 months. However, ARM stock is unique because it does not manufacture chips but merely designs the underlying processor architecture, then licenses that technology to other companies for manufacture. For instance, nearly every smartphone uses Arm-based processors, and the company earns royalties each time a chip containing its technology is sold — however, Arm is blissfully removed from the messy work of creating and shipping any hardware. Arm’s designs are increasingly being adopted in cloud servers, AI data centers and other next-gen technologies, making this European stock a great tech play for a connected future.
Banco Santander SA (SAN)
Banco Santander has seen shares surge about 70% in the past year thanks to strong lending activity and an aggressive stock buyback program that has lifted this major banking institution to new heights. Founded in 1856, the bank operates across Europe and Latin America, offering retail banking, commercial lending, wealth management, investment services and corporate banking solutions. Though Spain remains an important home market, a major advantage for Santander is its geographic diversification in countries throughout South America as well as other international markets. This broad footprint reduces dependence on any single economy and allows management to benefit from growth opportunities across multiple regions.
LyondellBasell Industries NV (LYB)
LyondellBasell is one of the world’s largest producers of plastics and resins. Its specialized products benefit from steady baseline demand and relatively limited competition, as well as long-term relationships with customers on specialty products that aren’t easily procured elsewhere. LyondellBasell is cyclical, as rising prices can squeeze margins and economic slowdowns can reduce demand, but it is remarkably consistent thanks to its scale. It’s also a generous income investment, with a 69-cent quarterly dividend that is only about a third of total earnings — and adds up to a tremendous yield of nearly 7%.
Lloyds Banking Group (LYG)
Lloyds Banking Group is one of the U.K.’s largest financial institutions, and it has risen about 40% in the past year or so thanks to structural changes in local interest rates. While the Federal Reserve has put off rate cuts despite inflation rates north of 4%, the E.U. and the Bank of England have been boosting rates lately. This allows for better margins on new bank loans as well as a longer-term rotation where older, low-yield assets can be replaced with higher-yielding ones. And since the U.K. is technically not in the E.U. after Brexit, Lloyds maintains a strong focus on the domestic U.K. market. This makes it a strategic partner with deep relationships that help provide a measure of stability despite broader economic volatility.
Nokia Oyj (NOK)
Nokia is a telecommunications technology company best known for its former dominance in mobile phones. Today, however, the company focuses primarily on building the networking equipment that powers global communications systems such as fiber-optic networks, cloud networking solutions and equipment used in the build-out of 5G infrastructure. With a customer base that includes telecom providers, governments and large enterprises, Nokia has deep relationships with clients and an expertise that is hard to match anywhere else in the world. And as demand for faster and more reliable data networks continues to grow, this telecom infrastructure company will only be more important in the years ahead.
Novartis AG (NVS)
Novartis is one of the world’s largest pharmaceutical companies and is a cornerstone of the European healthcare sector. The company develops treatments for cardiovascular disease, cancer, neurological disorders and other conditions across a wide and diversified product portfolio. While shares are up nicely over the past year with roughly 30% returns, healthcare companies also appeal to long-term investors because demand for medical treatment remains relatively stable regardless of economic conditions. NVS remains one of the best European stocks to buy for a foothold in this resilient sector, providing geographic diversification for U.S. investors in a solid, low-risk healthcare leader.
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7 Best European Stocks to Buy Now originally appeared on usnews.com
Update 06/24/26: This story was previously published at an earlier date and has been updated with new information.
