9 Large-Cap European Stocks Undervalued By EPS Trends

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 |  Includes: ARMH, ASML, BBVA, ORAN, PSO, SNY, TEF, TI, UN
by: Kapitall

According to the theoretical assumption that P/E = constant K, increases in earnings should be matched by proportionate increases in price - otherwise, a misplacing may have occurred. We ran a screen with this idea.

We screened large-cap US-traded stocks of companies based in Europe for those that appear undervalued relative to this theoretical assumption.

Of course, there's no reason to expect that P/E stays at a constant - this is only a theoretical assumption for the sake of the screen.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks could be undervalued by the market? Use this list as a starting point for your own analysis.

1. ARM Holdings plc (NASDAQ:ARMH): Designs microprocessors, physical IP, and related technology and software, as well as sells development tools to enhance the performance of high-volume embedded applications. United Kingdom. Market cap at $12.55B. The EPS estimate for the company's current year increased from 0.59 to 0.69 over the last 30 days, an increase of 16.95%. This increase came during a time when the stock price changed by 3.51% (from 26.53 to 27.46 over the last 30 days).

2. ASML Holding NV (NASDAQ:ASML): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Netherlands. Market cap at $20.12B. The EPS estimate for the company's current year increased from 2.99 to 3.42 over the last 30 days, an increase of 14.38%. This increase came during a time when the stock price changed by 6.32% (from 42.59 to 45.28 over the last 30 days).

3. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA): Engages in the retail banking, asset management, private banking, and wholesale banking businesses in Spain and internationally. Spain. Market cap at $44.33B. The EPS estimate for the company's current year increased from 1.01 to 1.15 over the last 30 days, an increase of 13.86%. This increase came during a time when the stock price changed by 13.58% (from 8.25 to 9.37 over the last 30 days).

4. France Telecom (FTE): Provides fixed telephony and mobile telecommunications, data transmission, Internet and multimedia, and other value-added services to consumers, businesses, and telecommunications operators. France. Market cap at $39.50B. The EPS estimate for the company's current year increased from 1.89 to 1.92 over the last 30 days, an increase of 1.59%. This increase came during a time when the stock price changed by -1.77% (from 15.23 to 14.96 over the last 30 days).

5. Pearson plc (NYSE:PSO): Engages in education, business information, and consumer publishing businesses worldwide. United Kingdom. Market cap at $15.84B. The EPS estimate for the company's current year increased from 1.22 to 1.24 over the last 30 days, an increase of 1.64%. This increase came during a time when the stock price changed by -1.15% (from 19.19 to 18.97 over the last 30 days).

6. Sanofi-Aventis (NYSE:SNY): Engages in the discovery, development, and distribution of therapeutic solutions to improve the lives of everyone. France. Market cap at $99.57B. The EPS estimate for the company's current year increased from 4.01 to 4.88 over the last 30 days, an increase of 21.7%. This increase came during a time when the stock price changed by 4.% (from 35.77 to 37.2 over the last 30 days).

7. Telefonica, S.A. (NYSE:TEF): Provides fixed and mobile telephony services primarily in Spain, rest of Europe, and Latin America. Spain. Market cap at $25.89B. The EPS estimate for the company's current year increased from 1.72 to 1.75 over the last 30 days, an increase of 1.74%. This increase came during a time when the stock price changed by -0.12% (from 17.21 to 17.19 over the last 30 days).

8. Telecom Italia SpA (NYSE:TI): Provides fixed-line and mobile telecommunications, Internet, and media services. Italy. Market cap at $20.94B. The EPS estimate for the company's current year increased from 0.92 to 0.94 over the last 30 days, an increase of 2.17%. This increase came during a time when the stock price changed by -1.31% (from 10.66 to 10.52 over the last 30 days).

9. Unilever NV (NYSE:UN): Produces and supplies fast moving consumer goods in food, personal care, and home care categories in Asia, Africa, central and eastern Europe, the Americas, and western Europe. Netherlands. Market cap at $159.86B. The EPS estimate for the company's current year increased from 2.28 to 2.45 over the last 30 days, an increase of 7.46%. This increase came during a time when the stock price changed by 4.05% (from 32.37 to 33.68 over the last 30 days).

*EPS data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.