Italian stocks have surged to an 18-year high, driven by banking and defense stocks. Pharmaceutical stocks have seen the best average annual returns since 2007. Banca Mediolanum stands out as the best financial stock in terms of performance over the past 18 years.

The main index of the Italian stock exchange hit the 42,000-point mark for the first time since 2007. The Milanese market has seen an average annual rise of 0.44% over 18 years. Italian stocks have outperformed European peers this year, with Spain leading the way with a 31.82% increase.

Recordati is the best stock over the past 18 years with an average annual gain of 17%. Diasorin follows closely with an average annual increase of 13.05%. Terna, a utility company, has posted an average annual return of 12.67%. Banca Mediolanum has gained an average of 12.52% annually over the same period.

Prysmian, specializing in energy and telecommunications cables, has returned an average of 10.94% annually. Snam, a utility in the regulated gas sector, has gained an average of 9.33% annually over the past 18 years. Both stocks have shown strong performance and are well-regarded by Morningstar analysts. Italian stocks have reached an 18-year high, with banking and defense stocks leading the way. Pharmaceutical stocks are seeing the best annual returns since 2007. Banca Mediolanum ranks as the top financial stock based on performance. Snam is on track to meet its annual targets, according to Morningstar analysts.

Campari has seen an average annual return of 8.10% over 18 years, gaining 9.79% since January 2025. The stock is considered fairly valued by the market. Campari reported a positive start to the peak season, with investments expected to pay off by year-end, leading to a decline in EBIT in the first half.

Enel, a utility company, has gained an average of 7.48% annually over 18 years and 22.95% since January 2025. Morningstar analysts confirmed the fair value of the stock at EUR 7.70. Enel announced a EUR 1 billion share buyback to be completed by year-end, supported by financial margin recovery.

Leonardo stock has gained 82.16% since the beginning of the year and has an average annual return of 7.05% over 18 years. Despite recent market rally, Morningstar analysts consider the stock undervalued with a fair value estimate of EUR 62.60. Increased defense spending in Europe is expected to benefit Leonardo.

Stellantis, a French-Italian automaker, has been one of the best stocks over the past 18 years with an average annual gain of 6.15%. However, it has lost 28.47% since January 2025 due in part to US tariffs. Morningstar analysts rate the stock as undervalued with a fair value of EUR 14.00.

Read more at Morningstar.

Italian stocks have surged to an 18-year high, driven by banking and defense sectors. Pharmaceutical stocks have seen the best annual returns since 2007. Banca Mediolanum tops the financial stock ranking for performance during the period analyzed.: The 10 Top Performers Since 2007