Which stocks performed the best and worst in the European market?

Investing.com - At the beginning of 2026, European stock markets showed a stark contrast, with defense contractors and financial stocks recording triple-digit gains over the past 12 months, while consumer staples giants and healthcare stocks lost nearly half of their market value.

According to the U.S. Bank Global Research Department’s European Market Snapshot, among the 250 largest publicly traded companies in Europe, Fresnillo led all stocks with a 436.4% 12-month increase, reaching 37.0 pence. Next were Nebius up 202.2% to $85.2, and Endeavour Mining up 171.7% to 42.2 pence.

Strong gains in materials and defense stocks are notable features of the current cycle, with Rheinmetall rising 154.0% to €1,781.5 and Siemens Energy climbing 139% to €144.6.

Use InvestingPro for faster breaking news and analyst reactions — Up to €555 off

European financial stocks dominated the top-performing stocks list. Société Générale surged 153.0% to €73.8, Commerzbank rose 129.6% to €34.7, Banco Santander increased 125.6% to €10.8, and Banco Bilbao Vizcaya Argentaria (BBVA) gained 112.1% to €21.5.

Dutch bank ABN AMRO, CaixaBank, Deutsche Bank, Bank of Ireland, Spain’s International Bank, Standard Chartered, UniCredit, Lloyds Banking Group, and Prudential all saw gains of approximately 79% to 100% during the same period.

Swedish defense group Saab rose 130.0% to SEK 693.3, reflecting continued investor interest in defense stocks amid escalating geopolitical concerns. Rolls-Royce increased 102.3% to 12.1 pence, and Leonardo rose 89.6% to €56.3.

On the other hand, Novartis declined 47.9% to DKK 369.6, making it the worst performer among large European stocks.

Wolters Kluwer fell 44.9% to €78.9, Diageo dropped 36.8% to 16.8 pence, and Pernod Ricard declined 32.9% to €75.1. Orsted decreased 32.1% to DKK 141.6, Coloplast fell 30.5% to DKK 536.0, and Sonova dropped 30.1% to CHF 211.5.

Swiss-listed companies accounted for a large portion of underperformers, with DSM-Firmenich down 29.6% to €66.2, Sika down 24.7% to CHF 148.3, Givaudan down 20.7% to CHF 2,988, Partners Group down 20.1% to CHF 1,050, Straumann down 18.2% to CHF 93.1, and Alcon down 17.7% to CHF 62.4.

French Dassault Systèmes fell 28.8% to €23.2, and German Adidas declined 28.6% to €149.2. Stellantis dropped 24.9% to $8.3, and Ferrari decreased 22.7% to $280.8.

This divergence in performance reflects broader market dynamics in February. According to the same report, commodity-related stocks have risen 3.3% since the start of the month, while U.S.-related stocks have fallen 1.7%.

The consumer discretionary sector was the weakest in the first quarter of 2026, declining 12.1%, lagging the historical average by 13.4 percentage points.

The utilities sector performed the best, rising 7.8%, exceeding the historical level by 9.6 percentage points. The Netherlands stood out with a 7.4% increase, ahead of the historical average by 6.2 percentage points.

According to U.S. Bank data, the best-performing stocks this month attracted $1.67 billion in fund inflows, with active funds receiving $250 million and passive funds $1.42 billion; meanwhile, the worst-performing stocks saw active fund outflows of $7 million but passive funds bought in $450 million, resulting in a net inflow of $390 million.

Year-to-date, European-focused equity funds have attracted $15.86 billion, the strongest start since 2015, driven entirely by passive inflows of $21.6 billion, while active funds have seen outflows of $5.74 billion.

Just last week, there was a net inflow of $2.65 billion, with large-cap stocks, industrial sectors, and Switzerland seeing the largest country- and sector-level inflows, while the UK and risk stocks experienced outflows.

As of February 19, U.S. Bank’s European Momentum Confidence Index stood at 32, slightly above the 30 threshold indicating increased risk of a collapse, marking the weakest reading since November 2025.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.