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Why should you ignore these 3 European companies?

JR
Jessie Ramsdale
· · 3 min read

Investors often focus their attention on US tech giants, while European markets remain neglected. However, this may mean a loss of opportunities, as analysts believe that Europe is home to companies with huge growth potential.

Airbus, Siemens and TUI are examples of companies worthy of attention. Let's take a look at why they might be interesting for your portfolio.

Airbus $AIR.DE

Airbus, one of the leaders in the global aviation industry, has roughly 60% market share compared to its main competitor. The number of orders exceeds 8,700 aircraft, equivalent to more than eleven times the planned deliveries for 2024.

However, the company faces supply chain challenges that are slowing production. Management is already taking steps to remedy this and expects profits to grow 36% to €5.4 billion in 2025. A strong balance sheet with net cash of over €10bn also suggests a potential higher return for shareholders.

Airbus also has a significant role to play in the aerospace sector, where it has overcome recent problems with contract mispricing. If it can resolve the supply chain issues, it has a long growth trajectory ahead of it.

Siemens $SIE.DE

Siemens, a global technology leader, is active in key areas such as the transition to renewable energy and the digitalization of industry. The Smart Infrastructure division benefits from global efforts to achieve carbon neutrality and represents a steady source of growth.

The Digital Industries division, which provides software and tools for automating production, also has great potential. This segment supports more than a third of the world's factories, suggesting huge opportunities for further expansion.

Siemens also owns a 75% stake in Siemens Healthineers, which operates in the medical technology sector. Demand for healthcare services remains stable even during economic uncertainty, adding to the company's overall stability. Although Siemens' results in Europe and China were weaker last year, the long-term outlook remains positive.

TUI $TUI1.DE

TUI, Europe's leading travel company, consolidated its market position after the fall of competitor Thomas Cook. Thanks to its larger market share and flexible capacity planning, it is better protected against fluctuations in demand.

The company increased its profits by 35% to €1.3 billion in 2024. Although growth is expected to slow to single digits, TUI's financial position is significantly better than before.

However, the company faces risks related to geopolitical issues and the tourism industry's sensitivity to economic factors. Still, the current valuation suggests that TUI shares are undervalued, which analysts believe may represent an interesting opportunity.

Disclaimer: You will find a lot of inspiration on Bulios, but stock selection and portfolio construction is up to you, so always conduct a thorough analysis of your own.

Source: Yahoo Finance

Stocks mentioned

TU

TUI1.DE

SI

SIE.DE

AI

AIR.DE

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