European stocks have opportunities with Nestle and GSK identified as undervalued; Burberry faces challenges.

From Morningstar: 2024-08-09 05:25:00

European stocks have sold off in August, presenting opportunities according to Michael Field. Nestle is seen as a standout with 20% upside, despite challenges from inflation and white-label goods in the consumer sector. GSK is also highlighted as undervalued despite litigation worries, thanks to a diverse and strong drug pipeline with strong revenue growth.

Burberry, a fashion stock, has seen its shares drop by 50% this year due to Chinese luxury consumption slowdown and cyclicality of the fashion industry. Issues with branching into higher-end markets have led to a transition period for the company, but it remains a 100-year-old global fashion brand with potential for growth. Investors should be wary of expecting a takeover, as integration challenges may arise.



Read more at Morningstar: 3 Undervalued Stocks After the Selloff