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.
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’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
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 (NYSE: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.
Tenaris SA
Benzinga Edge Value Score: 87.64
Tenaris (NYSE: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.
Stellantis NV
Benzinga Edge Value Score: 97.56
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