5 Stocks To Buy As Macron's Win Boosts Eurozone Prospects

The economic bloc’s labor market is also in good health with unemployment falling to significant low levels. At first glance, the U.S. unemployment rate of 4.4% recorded in April may seem significantly better, given that it is at its lowest since May 2007. But even at 9.5%, unemployment levels look favorable for the Eurozone. This is the lowest level experienced since Apr 2009 and, more importantly, the region is characterized by higher structural unemployment.

The icing on the cake is possibly recently released Eurozone growth data. In the first quarter, the region experienced quarterly growth of 0.5%. Such an expansion amounts to a yearly growth rate of 1.8% for the 19-country economic bloc. This is significantly better than the first quarter growth pace of 0.7% recorded in the U.S.

Our Choices

Macron’s electoral victory has dispelled all doubts about France’s future relationship with the Eurozone. Investors can now focus on robust economic fundamentals, evidence of which has been received even recently. Additionally, the ECB is likely to continue with its benign monetary policy, in sharp contrast to the Fed’s hints at monetary tightening.

Adding stocks from the Eurozone to your portfolios looks like a smart option at this point. However, picking winning stocks may be difficult.

This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score. 

We have narrowed down our search to the following stocks based on a good Zacks Rank and VGM score.

ArcelorMittal (MT - Free Report) is the world’s leading steel and mining company and is based in Luxembourg

ArcelorMittal has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. The company has expected earnings growth of 89.6% for the current year. Its earnings estimate for the current year has improved by 8.8% over the last 30 days. The stock has returned 13.9% over the last six months outperforming the Zacks Steel - Producers Market sector, which has gained 1.4% over the same period.

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