Banks to Renewables: The European Stocks Being Tipped for 2026

After the best year for European equities since 2021, analysts and strategists predict the region’s stocks have still more to give in 2026.

In particular, sectors that were last year’s winners are broadly tipped to do well again. Banks, by far the best performers of 2025, are favored for another strong showing, with Morgan Stanley and Barclays Plc naming them among their top picks. Bullish themes around increased defense spending, renewables and electrification have further to run.