3 European Companies To Invest In Today

European stocks got a lot more attractive at the start of the year when President Trump floated a series of tariffs and created uncertainty in U.S. markets. However, investors can choose from plenty of promising European stocks even during periods of less turbulence. Tariff concerns aren’t what they used to be, but these European companies continue to reward their investors even as U.S. equities start to look more attractive.

ASML (ASML)

ASML (NASDAQ:ASML | ASML Price Prediction) is a pick-and-shovel AI stock that looks fairly valued after enduring a 25% drop over the past year. Despite this decrease, the stock has more than doubled over the past five years. It has a reasonable 30 P/E ratio and offers a 0.87% yield.

The company creates the lithography systems that make it possible to produce semiconductor chips. The industry would be set back significantly if ASML didn’t exist, and the company has plenty of leverage in the hottest industry right now. Many tech giants and governments are geared to boost their AI spending. This parabolic spending will boost the demand for ASML’s services as corporations and countries rush to dominate the most consequential technology we have had in a long time.

The firm’s revenue soared by 46.3% year-over-year in the first quarter, while net income almost doubled. ASML wrapped up the quarter with a 30.4% net profit margin. 

Shell (SHEL)

Gas is an essential resource, and Shell (NYSE:SHEL) is one of the leaders in the industry. The British petroleum company has more than 13,000 gas stations in the United States alone, with strong coverage on the East and West Coasts. The company has more than 40,000 fuel stations worldwide.

This vast network of gas stations has helped the stock more than double over the past five years while providing a generous 3.90% yield. The stock is also up by about 14% year-to-date. 

Shell gives investors a good opportunity to minimize their exposure to inflation. Oil prices go up alongside inflation, and that helped Shell rally by more than 30% in 2022 when many tech stocks and pandemic favorites were crashing.  

Rolls-Royce (RYCEY)

If you only look at automakers that mass produce vehicles, you won’t find many compelling stock gains. However, the luxury car market is filled with outperformers like Rolls-Royce (OTCMKTS:RYCEY). The carmaker’s stock is up by 81% year-to-date and has more than tripled over the past five years. 

Although Rolls-Royce produces high-demand cars, those vehicles aren’t the only reason the stock has been soaring. Rolls-Royce is also an aerospace and defense company. When European countries looked to support themselves instead of relying on tech and aviation from the United States, firms like Rolls-Royce saw their stocks skyrocket overnight.

Revenue growth is typically in the low double-digits each year. The stock has a 0.62% yield while you wait for it to build on its impressive year-to-date gains. Net income growth has been outpacing revenue growth in recent quarters, translating into higher profit margins. Rolls-Royce usually delivers low double-digit net profit margins.