Morningstar

Italian Stocks At a Record: The 10 Top Performers Since 2007

The Italian stock market has finally recouped losses suffered since the Global Financial Crisis.

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Key Points

  • Italian stocks have hit an 18-year high, boosted by banking and defense stocks.
  • Pharmaceutical stocks posted the best average annual returns since the most recent record in 2007.
  • Banca Mediolanum is the best financial stock in the ranking by performance during the period under review.

With the Italian equity market at its highest since July 2007, we have identified the ten stocks that have risen the most over the past 18 years in the Morningstar Italy Target Market Exposure Index, which represents 85 percent of Italy’s market capitalization.

The 10 best equities of the past 18 years

The stocks are:

  1. Recordati REC
  2. Diasorin DIA
  3. Terna TRN
  4. Banca Mediolanum BMED
  5. Prysmian PRY
  6. Snam SRG
  7. Davide Campari-Milano CPR
  8. Enel ENEL
  9. Leonardo LDO
  10. Stellantis STLAM

Italian Stocks Climb Out of a Two-Decade Slump

The main index of the Italian stock exchange, the FTSE Mib, crossed the 42,000-point mark in the Aug. 13 session for the first time since July 2007, driven by banking and defense stocks. Over the past 18 years, the Milanese market has risen 0.44 percent on average on an annualized basis: After peaking in 2007, it suffered through the Global Financial Crisis in 2009 and the European debt crisis in 2011, from which it has struggled to recover. The current rally began after the Covid-19 pandemic. Among the biggest contributors to the rally are financial stocks, which account for about 48 percent of the main index in Milan, particularly banks that have been favored by monetary policies and M&A speculation.

Italian stocks have outperformed European peers since the beginning of the year, with the Morningstar Italy TME PR EUR Index gaining 24.71 percent versus 13.33 percent for the Morningstar Eurozone TME PR EUR Index, which measures the performance of large and mid cap stocks in the eurozone. Among the major eurozone markets, only Spain is doing better than Italy, up 31.82 percent. Germany stocks are up 18.24 percent and France has risen 6.09 percent.

The Best-Performing Stocks Over the Past 18 Years

Based on data available in Morningstar Direct, we calculated the average annual return of the 29 stocks that make up the Morningstar Italy TME Index. The indicator used is the daily return index for a hypothetical investor who purchased a stock at the beginning of the period, i.e., August 13, 2007.

Recordati

Pharmaceutical company Recordati is the best stock in the past 18 years, with an average annual gain of about 17 percent (as of Aug. 13). Since the beginning of the year, the stock is up 1.70 percent, caged between currency pressures from the weakening dollar and the risks of tariffs on medicines. Regarding the latter, however, it should be kept in mind that rare diseases, which account for the company’s entire U.S. sales, have so far been excluded from tariff assumptions.

Diasorin

The second best-performing stock on the Stock Exchange over the past 18 years is another health industry company, Diasorin, which operates in molecular laboratory diagnostics and immunodiagnostics. It has gained an average of 13.05 percent annually since August 2007, but has been down 15.32 percent since early 2025. In the aftermath of the presentation of its quarterly report last July 31, Equita sim, which has a Buy rating on the stock with a target price at EUR 118, commented on Diasorin’s weak performance this year, saying that “valuations are in our view particularly attractive ... given the fundamentals ... and good visibility on 2025 numbers.” As of August 13, the stock was trading at EUR 83.24.

Terna

Terna, a utility serving electricity transmission grids, has posted an average annual return of 12.67 percent over the past 18 years and since the beginning of 2025 has gained about 15 percent. In the second quarter, the company confirmed its 2025 guidance and reported slightly better than expected results, thanks to adjusted revenues, as highlighted by Equita sim in a July 30 note. However, as we wrote in an earlier article by Fabrizio Guidoni, “what continues to attract investors’ attention is the company’s historical ability to generate income through solid dividends and attractive yields, with relatively low volatility in the stock market.”

Banca Mediolanum

Banca Mediolanum is the best financial stock in the ranking by performance over the past 18 years. The bank, led by Massimo Doris, has gained an average of 12.52 percent annually over the period and is up 52.84 percent since January 2025. Despite the complex global environment, the Italian asset management industry continues to show signs of strength, and Banca Mediolanum is no exception. At the approval of its quarterly report last July 31, the bank raised its 2025 guidance on net inflows under management to 8.0-8.5 billion euros from the previous 7.5 billion euros and net interest income (NII), down 3 percent from the previously estimated -5 percent.

Prysmian

Prysmian, a company specializing in the production of energy and telecommunications cables, has returned an average of 10.94 percent annually for the past 18 years. It recently updated its all-time high on the stock market to EUR 74.00, benefiting-unlike most European companies-from the introduction of copper duties by U.S. President Donald Trump, since it produces directly in the United States. Since the beginning of the year, it has gained more than 22 percent.

Snam

Snam, a utility in the regulated gas sector, has gained an average of 9.33 percent annually over the past 18 years and is up 27.76 percent since January 2025. The stock, which has 4-star Morningstar Rating, is considered undervalued by Morningstar analysts. The price of EUR 5.14 at the close on August 13 is lower than the fair value estimate of EUR 5.40. “In our view, the good half-year performance confirms that Snam is on track to achieve its annual EBITDA and net income targets, set at EUR 2.85 billion and EUR 1.35 billion, respectively,” wrote Tancrede Fulop, senior equity analyst at Morningstar in a July 30 note in the aftermath of the presentation of the mid-year accounts.

Davide Campari-Milano

Campari, an alcoholic and non-alcoholic beverage company, has posted an average annual return of 8.10 percent over the past 18 years, while gaining 9.79 percent since January 2025. The stock, which has a 3-star rating, is considered by Morningstar analysts to be fairly valued by the market. The price of EUR 6.53 is in line with Morningstar’s fair value estimate of EUR 6.30. “The company reported a positive start to the peak season, with good demand for brands in the aperitif segment. The decline in EBIT [-5.6 percent in the first half] is mainly due to investments on brands, which we believe will bear fruit towards the end of the financial year,” commented Verushka Shetty, equity analyst at Morningstar after the accounts were published last July 31.

Enel

Among the best performing stocks over the past 18 years is another utility, Enel, which has gained an average of 7.48 percent annually over the period and advances 22.95 percent since January 2025. After the presentation of second quarter accounts, Morningstar analysts confirmed the fair value of EUR 7.70, considering the stock fairly valued. Enel closed the August 13 session at EUR 7.94. “Enel announced a EUR 1 billion share buyback, representing 1.3 percent of market capitalization, which will be completed by the end of the year. Given the recovery in the financial margin, thanks to the massive divestment plan initiated in 2022 and the drastic reduction of investments in renewable energy, it would be logical for the company to continue the buybacks beyond EUR 1 billion,” Fulop commented in an August 1 note.

Leonardo

Leonardo stock is among the best performers by return since the beginning of the year with an 82.16 percent gain, but it is also among the best performers over the past 18 years, having achieved an average annual return of 7.05 percent. Despite a recent rally in the stock market on the back of increased rearmament spending in Europe, Leonardo’s shares are considered undervalued by Morningstar analysts, who give the stock 4 stars and a fair value estimate of EUR 62.60. The stock closed the Aug. 13 session at EUR 47.80. “In the European defense market, which accounts for 53 percent of Leonardo’s industry revenue, we expect budgets to increase by nearly 62 percent over the next five years. This will favor Leonardo as the European leader in warfare electronics,” says Loredana Muharremi, Morningstar analyst.

Stellantis

2025 is proving to be a difficult year for the French-Italian automaker due in part to US tariffs, yet Stellantis stock has been one of the best over the past 18 years with an average annual gain of 6.15 percent. Since January 2025 it has lost 28.47 percent to EUR 8.32 (as of Aug. 13). Morningstar analysts, who give it a 4-star rating, consider the stock undervalued, indicating a fair value of EUR 14.00. “Although our figures for 2025 are slightly higher than [the company’s] updated forecasts, we expect free cash flow to remain weak in the near term, taking into account our forecasts for further restructuring, convergence of investment spending to competitor levels, and continued investment in the growth of the financial services portfolio,” Rella Suskin wrote in a July 29 note commenting on the first-half results.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

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