Michael Field, CFA

Strong earnings growth, low tech exposure, and improving economic conditions weigh in the region’s favor.

Energy and defense stocks remain front of mind for investors, but Morningstar sees opportunities to buy software and healthcare shares.

Morningstar strategist Michael Field says AI opportunities are emerging beyond Nvidia, with European stocks still lagging US peers.

Beyond Nvidia and Microsoft, analysts highlight undervalued AI names and lesser-known companies with strong future growth potential.

Oil stocks and shipping firms are surging amid the Iran conflict, but some tech companies may offer better long-term opportunities.

Many stocks with strong competitive advantages have been caught up in the selloff and are now undervalued.

A strong start to 2026 has pushed European stock valuations toward fair value, leaving a thinner margin of safety if markets turn.

Where valuations, rate cuts, and sector shifts point to opportunity in European equities.

Plus, how to manage the risk of market concentration in your portfolio.

Despite a loss of momentum, investors in European stocks have had another good year.

As 2026 approaches, investors face rising protectionism, geopolitical fragmentation, and market instability. Morningstar CEO Kunal Kapoor is joined by Morningstar’s global market strategists to explore the trends shaping portfolios in the year ahead.

European equities remain discounted relative to US stocks, creating selective buying opportunities.

An apparently volatile earnings season has left European equities with only minimal Fair Value Estimate changes.

Even after the recent rally, European markets are not overvalued.

Plus, 3 European stock picks that are undervalued today.

Morningstar’s Michael Field believes that the rotation out of US stocks into European assets will persist.

There’s plenty of uncertainty, but companies and investors may be being too pessimistic.