Many investors, who are hunting for value in the best stocks to invest in now, are turning toward Europe for virtual bargains in a world where over-priced assets seem to be the norm.
What is the Best Stock to Buy Right Now?
There is no one singular European stock that we can recommend, but there are a few areas that are quite promising. Many people made a lot of money with some of the best stocks to buy in 2014. So, what are the best stocks to buy in 2015 when it comes to Europe? Well, here are a few categories and examples of what some investors have indicated to be the best stocks to buy now that appear to be historically advantageous to invest in.
Likely Candidates and the Best Way to Buy Stocks in Europe
One fund that invests worldwide has been hunting for the best stocks to buy now that they predict will appreciate by at least 30 percent over time. They consider this to be a true reflection of the company’s underlying value. A few likely candidates in Europe have been discovered. So, a few of those areas where they found this likelihood include:
- Big energy companies, like Royal Dutch Shell
- Well-known brand names in the food production arena, like Nestle for example
- Major worldwide mining firms, especially those involved in mining iron ore, like Rio Tinto
Why are energy, food and mining top picks?
- Energy- One example is Barclays Capital report that, due to the increase in Gulf of Mexico well production, as well as their recent focusing on cost control, Royal Dutch Shell is doing especially well at generating cash for covering its dividend payments and capital requirements.
- Food- Nestle is generally very popular all the time due to the fact that it is the largest processor of food worldwide, and many investors prefer investing in a well-known name. With product lines like Gerber, Alpo and Lean Cuisine, their stock is recommended by many investors, especially because it has quadrupled over the last decade. Other food company stocks in Europe are also doing well this year.
- Mining- European mining, like Rio Tinto, which is based in London and is one of the largest mining firms in the world, have been seeing steady increases in dividends recently. Analysts report that they have the financial ability to increase their payouts substantially this year.
Investors that are value hunting are also quite hot right now on emerging market stocks for this year. There are three basic approaches to buying emerging stocks including using closed-end funds or ETFs, open-end mutual funds, or carefully assessing individual companies on the foreign exchange.
Emerging markets are quickly becoming a major driver of global growth, giving investors the opportunity to cash in on their current growth as well as their growth in the foreseeable future. Their economies are projected to grow faster than developed nations, such as the U.S. for example, by two or three times. An additional benefit of investing in emerging markets stocks is projected by many savvy investors to be the diversification that they provide due to the fact that they have a tendency to perform in a different way than those of developed markets.