European stocks are expected to gain as countries shift focus back to domestic production, according to MoneyWeek. The continent has set up major funding programmes to strengthen defence, infrastructure and industrial capacity, creating a potential tailwind for European stocks.
Ørsted, the Danish energy company, is a global leader in offshore wind. Despite a long-term share price decline, its profit and cash flow have increased since 2021, and analysts see it as a buying opportunity. Its Hornsea 3 wind farm off the UK coast could power 3.3 million homes.
ACS Group, a Spanish construction firm, is increasing its exposure to digital infrastructure. It has taken a primary role in a €2 billion joint venture with BlackRock to build a data-centre pipeline with 1.7 gigawatts of capacity. ACS predicts its digital-infrastructure income will rise from €10 billion in 2025 to €25 billion in 2030.
Thales, a French defence and aerospace company, derives 50% of its sales from defence. It has increased radar antenna production for the Netherlands' Ministry of Defence by 60% and has a deal with Renault to produce 1,000 Thales Toutatis loitering-munitions drones per month, up from 150 per year.