Our Methodology
To compile our list of 7 undervalued European stocks to invest in now, we used the Finviz and Yahoo stock screeners to find 40 largest European companies. From that list, we screened for companies that are trading at a forward P/E ratio of under 15, as of September 26. We then narrowed our choices to 7 stocks according to their hedge fund sentiment, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their hedge fund sentiment, as of the second quarter.
Why do we care about what hedge funds do? 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Undervalued European Stocks To Invest In Now7. BP (NYSE:BP)
Number of Hedge Fund Investors: 38
Forward P/E Ratio as of September 26: 8.16
BP (NYSE:BP) is a multinational energy company with a diverse portfolio of businesses, including exploration, refining, marketing, and production of oil and natural gas products. The company also has a significant presence in solar energy and is a leading manufacturer of terephthalic acid, a key component in producing plastic bottles, food containers, and textiles. The company’s brand portfolio includes well-known names such as BP, Aral, Castrol, and Air BP, which cater to various energy and chemical sectors, including fuel and lubricants, automotive and industrial lubricants, and electric vehicle charging.
BP (NYSE:BP) has committed to reducing its oil and gas production by 25% by 2030 and is investing heavily in lower-carbon initiatives. On September 12, BP (NYSE:BP) and Iberdrola, a Spanish multinational electric utility company, announced the construction of a 25 MW green hydrogen project at BP’s (NYSE:BP) Castellon refinery in Spain, which is expected to be operational in the second half of 2026. This project is the first joint hydrogen venture between BP (NYSE:BP) and Iberdrola through their equally owned joint venture, Castellon Green Hydrogen. The project has received funding of $16.73 million from the Spanish Recovery, Transformation, and Resilience Plan. The initiative, which also involves the Technology Institute of Energy (ITE), aims to produce green hydrogen, a cleaner and more sustainable alternative to traditional fossil fuels, and marks an important step forward in the companies’ efforts to reduce their carbon footprint and contribute to a more sustainable energy future.
BP’s (NYSE:BP) commitment to reducing its oil and gas production and investing in lower-carbon initiatives, such as the 25 MW green hydrogen project with Iberdrola, positions the company for long-term success and growth. With a strong track record of innovation and a commitment to sustainability, BP (NYSE:BP) is poised to thrive in a rapidly changing energy landscape. BP (NYSE:BP) is trading at a forward P/E ratio of 8.16 which is a 29.84% discount compared to the industry average of 11.63. Analysts have given the stock a Buy rating with an average price target of $41.29, which implies an upside of 26.33% from current levels. As of the second quarter, the stock is held by 38 hedge funds with stakes worth $1.48 billion. Fisher Asset Management is the largest stakeholder in the company and has a position worth $787.49 million as of June 30.
6. Aptiv (NYSE:APTV)
Number of Hedge Fund Investors: 38
Forward P/E Ratio as of September 26: 11.52
Aptiv (NYSE:APTV) is a leading global technology company that provides solutions to various industries, including transportation, aerospace and defense, telecommunications, and industrial markets. The company delivers world-class products, platforms, and full-system solutions through its various brands, including Aptiv, Wind River, HellermannTyton, Intercable Automotive Solutions, and Winchester Interconnect. Aptiv (NYSE:APTV) is known for its innovations in autonomous driving and electric vehicle architectures. The company’s products help reduce the complexity of vehicle systems, improving vehicle safety and efficiency.
On August 13, Aptiv (NYSE:APTV) celebrated the expansion of its manufacturing facility in Chennai, India. The expanded plant, which will produce cutting-edge cockpit control systems, will increase the company’s production capacity and enable it to supply high-quality components to key automakers in India and global markets.
The expansion is expected to solidify Aptiv’s (NYSE:APTV) position as a key automotive partner in India and drive innovation in one of the world’s fastest-growing markets. With the expanded plant, Aptiv (NYSE:APTV) will be able to produce advanced safety and user experience features, such as radars, cameras, and next-generation electronic control units, which will help the company to stay ahead of the competition and meet the growing demand for software-defined vehicles.
Aptiv (NYSE:APTV) is trading 11.52 times its earnings, which is a 31.60% discount compared to the sector median of 16.84. The company’s earnings are expected to grow by 24.86% this year. The stock was held by 38 hedge funds at the end of the second quarter with stakes worth $1.02 billion. As of June 30, Impax Asset Management is the largest shareholder in the company, with a stake worth $437.86 million. Analysts hold a consensus Buy rating on the stock, and the average price target of $91.34 implies an upside of 25.67%.
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Publish date : 2024-09-26 15:11:00
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