Overlooked European stocks that offer income and growth potential

Professional investor Alex Wright highlights three European stocks with recovery potential and value

London Exteriors And Landmarks - 2024
(Image credit: AaronP/Bauer-Griffin / Contributor)

We invest in attractively valued companies with the potential for positive change. This typically means investing in overlooked stocks where there is little or no value ascribed to any recovery potential. The market is often slow to recognise change in out-of-favour stocks, which gives us time to undertake our due diligence and build conviction in the positive change thesis. It can be centred around either internal or external change; ideally, a combination of both. If things improve as we expect, there should be significant upside as the consensus view changes and new investors buy into the story.

Overlooked European stocks

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Alex Wright

Alex Wright has honed his distinctive contrarian value investment approach over a career spanning 23 years with Fidelity International.  He followed the traditional Fidelity approach to becoming a Portfolio Manager beginning his career as an analyst and rotating across a number of sectors. In 2008, he started managing the Fidelity UK Smaller Companies Fund, which he managed until 2014. In 2010, he broadened his remit to the full market cap spectrum, began working more closely with Sanjeev Shah, before taking over the management of Fidelity Special Values PLC from Sanjeev in September 2012 and Fidelity Special Situations Fund in January 2014.