European stocks have started the year well, continuing the robust performance that started during the Covid-19 pandemic. The Euro Stoxx 50 index, which tracks the biggest European companies, rose to a record high of €4,663 on Friday, meaning that it has surged by more than 16% since October last year. 

Other local European indices have also done well. In Germany, the DAX has surged to an all-time high, helped by the robust performance of SAP, the biggest company in the region. The same trend is happening in other countries as the IBEX 35 and FTSE MIB jump. Here are some of the best European stocks to buy in February.

Stoxx 50 index chart

Airbus is one of the biggest industrial companies in Europe. The company manufactures planes both for commercial and defense industries. Over the years, the firm has operated as a duopoly with Boeing, the bruised American company.

Recently, Airbus has proven that it is a better company than Boeing as the latter has moved from one crisis to the other. And now, companies are taking notice. In a recent statement, United Airlines hinted that it will consider making Airbus orders for the first time. Other airlines that have historically used Boeing are considering the move. 

Airbus is also benefiting from the growing defense business as geopolitical issues mount. This explains why its stock is up by 6.5% this year and the trend will likely continue.

Adyen is another bruised fintech company that could recover in 2024. The firm, which offers payment processing services, tumbled in 2023 as concerns about its growth mounted. Its stock crashed from the pandemic high of €2,835 to a low of €600 in 2023. This sell-off mirrors that of companies like CAB Payment and PayPal.

Still, Adyen share price has rebounded by more than 100% in the past few months and the trend will likely continue. Besides, it still has a strong market share and its business is growing albeit at a slower rate than before.

From a technical standpoint, Adyen stock has formed a bullish flag pattern, which is a sign of a bullish continuation. This means that it could rebound to the next key level at €1,702, the highest point since July 31st.

The other best European stock to invest in is L’Oreal, one of the biggest companies in France. Its stock has jumped to a record high of €452 and I believe it has more room to run. The key catalyst is that it has some of the best brands across its consumer, dermatological, professional, and luxe brands. 

These brands include L’Oreal Paris, Dark and Lovely, Garnier, Mixa, and Maybelline New York. A key catalyst for the company is that Estee Lauder, one of its biggest competitors is bruised. This means that it can use these problems to continue gaining market share.

L’Oreal also has a strong balance sheet, meaning that it can fund acquisitions to accelerate its growth. It has over €5 billion in cash and short-term investments and over €241 billion in market cap. This unlimited cash means that it can afford most companies in the industry.

The post Best European stocks to buy in 2024 appeared first on Invezz