Best European Stocks with Strong Buy Momentum Signals for 2026

Global equity markets are demonstrating remarkable resilience as we enter February, with investors increasingly recognizing that investment opportunities extend well beyond traditional tech powerhouses. When considering the best European stocks and high-performing equities worldwide, the earnings environment offers compelling reasons for optimistic positioning. Technology giants including Apple, Meta, Microsoft, and Tesla will be reporting their quarterly results in late January, setting the tone for a broader earnings expansion that’s projected to benefit sectors across the board. For 2026, earnings growth is expected to accelerate across all 16 major market sectors—a milestone not achieved since 2018—making this an opportune moment to explore best European stocks alongside momentum-driven opportunities globally.

The fundamental shift in market dynamics means investors should focus on companies that have already demonstrated strong performance within evolving economic conditions rather than banking solely on mean reversion plays. Securities earning Strong Buy momentum recognition typically feature robust earnings revisions combined with upward price momentum, positioning them as compelling opportunities for portfolio enhancement through February and beyond.

How to Screen for Top-Performing European and Global Momentum Stocks

Identifying the best European stocks requires a disciplined screening methodology. The approach we’re examining leverages comprehensive research tools to filter through more than 200 Strong Buy-rated equities, identifying those with genuine momentum characteristics combined with reasonable valuations.

The screening framework operates as follows:

• Quality Rating Filter: Zacks Rank of #1 (Strong Buy) designation
• Momentum Criteria: Price positioned within 20% of 52-week highs
• Valuation Metrics: PEG ratio (Price/Earnings to Growth) not exceeding 1.0
• Price Efficiency: Price-to-Sales ratio capped at 3.0
• Performance Trend: Top 7 candidates ranked by 12-week price momentum

This methodology narrows a universe of more than 200 candidates down to seven carefully selected equities, each representing best-in-class characteristics across quality, momentum, and valuation dimensions. The screening framework—referred to as bt_sow_momentum_method1 within the Research Wizard—demonstrates that disciplined filtering can uncover exceptional opportunities across developed markets, including Europe’s strongest performers.

Why European Equities Deserve Recognition Among Best-Performing Stocks

The investment landscape of 2026 increasingly reflects the interconnected nature of global capital markets. European companies competing on an international stage often display superior operational efficiency and innovation compared to their traditional market perceptions. As earnings expand across all sectors, European enterprises—particularly those in technology, consumer services, and industrial sectors—stand poised to benefit from global economic momentum alongside North American peers.

International Growth Leaders: A Case Study in Momentum and Valuation

Expedia Group, Inc. (EXPE) serves as an instructive example of how best European stocks and international equities can mirror the characteristics of leading global performers. As a technology-driven travel company operating through multiple consumer and commercial channels—including Expedia, Hotels.com, and Vrbo platforms—the company has established a diversified business model with significant international exposure.

The company’s trajectory over the past four years has been particularly impressive. Even as revenue growth moderated to 7% in 2024 following a three-year period averaging 37% annual expansion from 2021 through 2023, the company maintained momentum through operational excellence. CEO Ariane Gorin emphasized this in the company’s most recent quarterly statement: “Notably, we grew room nights in the U.S. at the fastest pace in over three years, delivered our 17th consecutive quarter of double-digit growth in B2B—up 26%—and grew consumer bookings by 7%.”

The earnings trajectory supporting Expedia’s Strong Buy status reflects strong consensus positivity. Analysts project adjusted earnings will expand 27% during 2025, followed by 20% growth in 2026, lifting earnings per share from $12.11 in 2024 to $18.39 by 2026. Revenue growth is anticipated at 7% annually through 2026, positioning the company to generate $15.56 billion in revenue this year.

Stock performance validates this confidence. EXPE shares appreciated 55% over the trailing 12-month period and 434% across the past 15 years. Following a surge to all-time highs in early January, the stock experienced a 10% pullback—a development that created an attractive entry point near key technical support levels, including the 50-day moving average and historically compressed relative strength index readings.

Building Your Best European Stocks Portfolio for 2026

Finding best European stocks with Strong Buy momentum characteristics requires adherence to disciplined screening methodology. Whether evaluating emerging opportunities, established market leaders, or international growth companies, applying consistent valuation, quality, and momentum criteria helps identify securities positioned to outperform.

The convergence of strengthening global earnings, expanding sector participation, and reasonable valuations suggests 2026 will offer meaningful opportunities across developed markets for investors willing to apply systematic analysis. Start identifying equities fitting these criteria today through comprehensive screening tools—your next significant investment opportunity may be waiting among the best European stocks currently signaling Strong Buy characteristics.