European Valuations Hit 35-Year Lows, Sparking Strong Gains
? Key Highlights:
At the start of 2025, European forward price-to-earnings (PE) ratios hit their lowest level relative to U.S. stocks in over 35 years, per Goldman Sachs.
AI-driven stock selection strategies launched by Investing.com helped investors massively outperform the U.S. market.
S&P 500: -1% YTD, while European markets surged:
Germany’s Industrial Champions: +19.64%
Italian Growth Stars: +16.64%
Spanish Market Leaders: +14.80%
? Investors evaluating undervalued international stocks can leverage the Ratios (TTM) API to compare financial metrics across markets.
Top-Performing Stocks in 2025
? Germany:
Thyssenkrupp (ETR: TKAG): +96.42%
? Italy:
Iveco Group (BIT: IVG): +62.15%
? Spain:
Banco Santander (BME: SAN): +39.69%
? France:
Thales (EPA: TCFP): +39.38%
? Korea:
DB HiTek (KS: 000990): +32%
These stocks are not backtested—they are real-world results, reflecting strong momentum outside the U.S.
Should Investors Shift Away from U.S. Stocks?
? Not entirely, but diversification is key.
With high U.S. valuations and geopolitical volatility, investors are seeking undervalued global opportunities.
European stocks, once ignored for slow growth, are now attracting capital due to low valuations and improving fundamentals.
? Investors looking to analyze financial growth trends across global stocks can use the Financial Growth API for deeper insights.
Takeaway
European markets, particularly in Germany, Italy, and Spain, are outperforming the U.S. in 2025, driven by low valuations and sector strength. While the U.S. remains a key market, investors seeking diversification and growth should pay close attention to undervalued international opportunities.