For years, U.S. markets were the pinnacle of growth and profits for many investors.
However, global markets are starting to catch up to the U.S., with some even surpassing the Nasdaq and New York Stock Exchange's growth in 2025.
The S&P 500 grew by around 17% in 2025 - that’s higher than its historical average around 10%.
But compared to other stock markets globally, it lagged behind:
- Japan markets grew by 26%.
- U.K. markets grew by 22% in 2025.
- European markets grew by 19%.
What does this mean? Other markets may present some potential opportunities for investors to profit by looking beyond U.S. markets.
European stocks are currently trading at valuations that look pretty attractive compared to their U.S. counterparts.
The STOXX 600 (Europe's version of the S&P 500) has a price-to-earnings ratio of around 12.0. Meanwhile, the S&P 500 sits at 30.02.
This means they could be undervalued.
You may be thinking, “I live in the U.S. - how can I invest in European stocks?”
Many of these companies that are growing are available to investors through individual stocks or ETFs that trade on American exchanges.
That means accessing these potential opportunities is just as simple as buying any other stock.
With that said, let’s take a look at some potential European stock market opportunities, what’s happening in Europe, and what investors need to know.
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What’s Going On With European Stocks in 2026?
Europe has gone through a lot over the last few years.
From the war in Ukraine, to economic issues in Germany, companies have been scrambling to grow.
But, the European Central Bank has been slashing rates, inflation is falling, and economies are beginning to improve.
That stability is allowing companies to recover - but some opportunities have managed to grow despite the broader volatility.
Two ETFs That Give You Access To Europeans Stocks
You don't need an international broker to invest in European stocks. Here are two ETFs traded on U.S. exchanges that track different opportunities:
SPDR Euro STOXX 50 ETF (FEZ)
This tracks the STOXX 50 index - the top 50 companies across European markets by market cap.
What's inside: Major European players like ASML (chip manufacturing equipment), SAP (enterprise software), LVMH (luxury goods), and Siemens (industrial conglomerate).
Think of it as the European equivalent of investing in the S&P 500's top companies.
The history: This index has shown strong rebounds after previous crises. After the 2008 financial crisis, it jumped 25% in 12 months.
Following the 2020 pandemic, it surged 60% over nine months.
Current status: It ended 2025 up 35% - positioning it for potential growth if European economies stabilize further.
iShares MSCI Poland ETF (EPOL)
This one's more specialized. It focuses on Polish stocks, particularly banks that are benefiting from an unexpected boom.
The opportunity: Poland has become the logistics hub for Ukraine aid.
Over $62 billion in U.S. aid flows through Poland before reaching Ukraine.
This has created massive economic activity - transportation, labor, shelter costs - that primarily benefits Polish banks providing loans to businesses handling these contracts.
The numbers: Some Polish banks are on track to hit $43 billion in income for the second straight year in 2025, up from $28 billion in 2022.
PwC called it "the golden times" for Polish banking.
What's inside: Holdings in PKO Bank Polski and Bank Pekao, Poland's two largest banks. These institutions are reinvesting their current into long-term growth initiatives.
Current status: Up just around 88% over five years - and is positioned to benefit both from short-term geopolitical flows and Poland's projected long-term GDP growth that could outpace the U.K. by 2040.
The Recovery Pattern For European Stocks
European markets have a track record of strong recoveries:
- 2008 Financial Crisis: STOXX 50 rebounded 25% in 12 months.
- Euro Debt Crisis: STOXX 600 jumped 18% in 2013, DAX hit record highs in 2015.
- 2020 Pandemic: STOXX 50 surged 60% over 9 months, FTSE 100 up 10% in 6 months.
These aren't guarantees, but they show how historically strong European companies have bounced back after downturns.
What Could Change Things
The biggest factor? Peace. If the Russia-Ukraine conflict ends, we'd likely see:
- Energy costs stabilize as supply chains normalize.
- Economic confidence returns to major European economies.
- Capital flows back into undervalued European assets.
- Central bank stimulus continues supporting growth.
Also, investors are looking all over the world for opportunities right now, not just Europe.
Other markets showing strong growth could entice some investors to look away from western markets in the U.S. and Europe in favor of BRICS nations or Japan.
European Stocks: The Bottom Line
European stocks represent quality companies trading at a discount.
- FEZ gives investors broad exposure to Europe's biggest names.
- EPOL offers a more focused bet on Polish banking's unique position.
Neither is a guaranteed winner - investors should always consider currency fluctuations, geopolitical instability, and local economic risks before investing.
But, U.S. markets are not the only ones showing strong returns anymore - global markets are growing, and in some cases, outpacing U.S. markets.
As always, do your own research - understand your risk tolerance and remember that international investing adds complexity - but also possible opportunities.
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