European equity markets might look “gloomy” right now, but Barclays noted that one investment strategy has delivered “solid outperformance” over recent months. “Buyback strategies remain a bright spot for Europe, with strong volumes and returns. Amid a gloomy equity market, our buyback announcement basket (BCEUBUYB) has outperformed by 4.6% since Oct,” the investment bank’s strategists wrote in a Nov. 21 research note. And the strategists expect further positive momentum into 2025, given the “large remaining amount of executions.” “As we approach the end of the earnings season, we anticipate more companies will re-engage in share repurchases in the coming weeks,” Barclays’ strategists added. “Notably, stocks with a high volume of buyback executions have shown greater resilience during the post-US election market turmoil and continue to outperform the market year-to-date.” The pan-European Stoxx 600 index is trading around 6.3% higher year-to-date, but fell following the result of the U.S. election as investors considered what a second term for President-elect Donald Trump could mean for the region’s economy. Companies buy shares back for a number of reasons, including to boost the price of their stock. Buybacks essentially reduce the amount of shares in circulation, bumping up the price, and are one of the ways companies can reward shareholders. Sectors with the greatest concentration of buybacks include consumer staples, financials and energy, Barclays’ strategists noted. Here are 10 stocks from the investment bank’s European buyback basket, which stand out for having substantial upside potential according to FactSet’s consensus price targets: Top stocks Among the names in the bank’s basket is Irish nutrition company Glanbia. Eight of the nine analysts covering the stock are bullish, giving it either a buy or overweight rating at a target price of 21.56 euros, according to FactSet. This gives the stock upside potential of around 45%. Other stocks in the basket that stand out include Danish pharmaceutical giant Novo Nordisk and oil and gas behemoth Shell , the latter of which also made Barclays’ list of top stocks to own in 2025 . Of the 32 analysts covering Novo Nordisk, 29 have an overweight or buy call on the stock. Analysts’ average target price on the stock is 989.89 Danish krone ($139.20), giving it 32% potential upside, according to FactSet data. Meanwhile, 22 of 29 analysts covering Shell have a buy or overweight rating on the stock. Their average target price is £31.34 ($39.43), implying around 20% upside potential. — CNBC’s Michael Bloom contributed to this report.
