Cheap Stocks Are Hard to Find in Rotation Out of US, SocGen Says

Attractive equity valuations in Europe and Japan were a big draw for investors looking beyond US stocks. The bad news: Those cheap price tags are fast disappearing.

The percentage of stocks trading at less than 8 times estimated earnings has declined to about 3% in Europe and 2% in Japan, from 15% and 8%, respectively, at the end of 2024, according to Société Générale SA quantitative strategists.