The European stock market has been nothing short of impressive in 2023, with a narrative of resilience and remarkable success that defied early-year scepticism.
ADVERTISEMENTThe Euro Stoxx 50 index, a key benchmark for Europe's corporate giants, has seen an impressive year-to-date increase of 19%, rebounding after the 12% drop suffered in 2022.
Leading the charge in terms of performance within the Euro Stoxx 50 are some of Europe's most renowned names, showcasing significant gains that have left investors pleasantly surprised.
Italy's financial institution Unicredit SpA has particularly stood out, with its shares surging by an astonishing 84%, showcasing the bank's robust business model and strategic initiatives.
Joining the ranks of high performers from Italy are two automotive manufacturers: Stellantis and Ferrari, both accelerating with gains of 60% and 57%, respectively.
Spain's retail powerhouse, Industria de Diseño Textil, SA (Inditex), the parent company of popular brands like Zara, experienced a remarkable 58% rise in its stock value. This resurgence was driven by the reopening of physical retail stores and the ongoing boom in e-commerce.
Meanwhile, Banco Bilbao Vizcaya Argentaria (BBVA) capitalised on Spain's economic recovery, witnessing a 46% increase in its value.
From Germany, sportswear giant Adidas AG posted a 52% climb, reflecting a world that is re-embracing sports and active lifestyles after the pandemic. Software titan SAP SE also enjoyed significant gains, with a 43% rise that underscores the accelerating digital transformation across global businesses.
France has not been left behind in this remarkable rally, with Compagnie de Saint-Gobain SA and Schneider Electric SE both posting gains of 45% and 38%, respectively. These figures highlight the growth in the construction and energy management sectors.
Additionally, luxury brand Hermès International saw its value increase by 38%, proving the resilience of high-end consumer goods in the market.
Notably, the Danish pharmaceutical company Novo Nordisk A/S, Europe's largest company by market capitalisation, which doesn’t appear in the Euro Stoxx 50, witnessed a 49% increase in its stock value. This impressive performance was driven by its strong pipeline of diabetes treatments and obesity care products.
Which European stocks surged more than 100% this year?
However, beyond the limelight of these established corporates, a diverse ensemble of smaller European companies has showcased a performance higher than 100%.
In total at the time of writing, 33 European stocks with a minimum market capitalisation of €500 million have enjoyed gains of at least 100% in 2023.
Among these remarkable performers is German tech firm Northern Data AG, formerly known as Northern Bitcoin AG, which leads the pack with a staggering 310% increase in its stock value. Northern Data AG specialises in high-performance computing, serving the growing needs of cloud services, blockchain technology, and the emerging field of generative artificial intelligence (AI).
In the second position, Portugal's Mota-Engil SPGS SA, engaged in construction and infrastructure, has seen its stock surge by an impressive 238% year to date. Following closely is Hungary's OPUS GLOBAL Nyrt, an industrial conglomerate, which has climbed 228%.
British engineering stalwart Rolls-Royce Holdings plc is not to be left behind, with its shares taking flight with a remarkable 222% increase.
Dutch Redcare Pharmacy NV has capitalised on the ever-growing health sector, with its stock appreciating by 204%, securing a place in the top five performers.
With 2024 just around the corner, it appears 2023 has been a year of extraordinary resilience and success for European stocks, with established giants and smaller companies alike delivering remarkable performances.
