European stocks may be looking “bleak” at the moment, but Barclays points to one investment strategy that has performed “solidly well” in recent months. “Buyback strategies remain a bright spot in Europe, with strong volumes and returns,” the investment bank strategist wrote in a Nov. 21 research note. “Our buyback announcement basket (BCEUBUYB) has continued to improve since 10 amidst subdued equity markets. Outperforming the market by 4.6% on a month-to-month basis, strategists expect further positive momentum in 2025 given that “there are still a lot of executions.” Barclays strategists added: “As earnings season comes to an end, we expect more companies to do so. Renew share buybacks in the coming weeks. “Notably, stocks with high buyback execution volumes have shown greater resilience amid the post-U.S. election market turmoil and have continued to outperform the market so far this year. The pan-European STOXX 600 index is up about 6.3% so far this year but fell after the U.S. election results as investors consider what a second term for President-elect Donald Trump will mean for the region’s economy. Companies are buying back shares. There are many reasons, including boosting stock prices. Buybacks essentially reduce the number of shares in circulation, thereby increasing prices, and are one of the ways companies reward shareholders. Barclays strategists note that the industries with the highest concentration of buybacks include consumer staples. , financials and energy. Here are 10 stocks in the investment bank’s European buyback basket that stand out for having huge upside potential, according to FactSet’s consensus price targets: 9 analysts covering the stock, according to FactSet Eight of the analysts are bullish on the stock, with a Buy or Overweight rating and a price target of €21.56. Other standouts in the basket include Danish pharmaceutical giant Novo. Novo Nordisk and oil and gas giant Shell also made Barclays’ list of the best stocks to own in 2025. Among the 32 analysts covering Novo Nordisk. There are 29 analysts with overweight or buy ratings on the stock, with an average price target of 989.89 Danish kroner ($139.20), implying a potential upside of 32%. , 22 of the 29 analysts covering Shell have a buy or overweight rating on the stock. Their average price target is 31.34 pounds ($39.43), implying an upside potential of about 20% – CNBC’s Michael Bloom. contributed to this report.
