The European economy is growing and the volatility from the Greek exit drama is keeping a lid on stock valuations. Put those together and it’s a good time to go shopping for European stocks, said Erin Gibbs, Equity Chief Investment Officer at S&P Capital IQ. ‘The S&P Europe 350 large-cap index is looking at about 10% earnings growth this year versus almost nothing for the U.S., and about 12% next year which is about equivalent to the U.S. So overall very good growth,’ said Gibbs. ‘And they are trading at very low valuations. All this volatility from the Greek exit concerns have actually brought those valuations down to about their six month average of about 16.3 so now is a good time to get in.’ The S&P Europe 350 Index is up almost 6% year-to-date compared to a 2.4% rise in the domestic S&P 500. One of Gibbs top picks is French pharmaceutical giant Sanofi, which is up 16% so far in 2015.
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