European stocks are finally showing signs of life, with analysts at UBS highlighting a stronger and more reliable earnings backdrop than investors have seen in years.
With valuations still trading at a discount compared to US peers, the stage is set for select European names to deliver outsized returns.
To UBS experts, two stand out in particular with potential for over 50% return in 2026: Trustpilot and EasyJet.
Each represents a different corner of the EU’s corporate landscape – yet all have one thing in common: meaningful upside as earnings momentum builds this year.
Trustpilot: a misunderstood SaaS gem with AI tailwinds
Trustpilot, the online review platform, has been battered by skepticism – but a senior UBS analyst believes the market is missing the bigger picture.
In a recent note to clients, Hai Huynh pointed to “mid-to-high teens top-line growth, scalable SaaS model, potential to double margins over time” as reasons to load up on TRST stock this year.
Trustpilot’s cash generation remains strong, and its willingness to return excess funds to investors makes its stock all the more exciting as a long-term holding, he added.
In his research report, Huynh dubbed Trustpilot a rare European tech play with both “growth” and “profitability” in sight.
“Misunderstood narratives” have hurt shares, but catalysts such as AI-powered review verification, data monetization, and the absence of direct competition could flip sentiment in 2026, he concluded.
With fiscal year 2025 results due in March, investors may soon see whether Trustpilot shares can silence its critics and prove itself as one of Europe’s most overlooked growth stories.
EasyJet: flying higher despite economic turbulence
Budget airline EasyJet has endured its share of headwinds – from Brexit uncertainty to pandemic-era travel restrictions, but UBS sees brighter skies ahead.
Analyst Jarrod Castle describes it as a “well capitalised company with an investment grade balance sheet,” a rare strength in the airline sector.
Passenger volumes are expected to rise, while package holidays continue to gain traction, creating a dual engine for profit growth.
The challenge, Castle warns, lies in the “UK economic backdrop and intense capex programme,” which could weigh on investor sentiment.
Still, with leisure travel demand proving resilient and EZJ positioned to capture market share, the airline stock looks set to benefit from Europe’s recovery.
EasyJet’s full-year results, due at the end of January, will be closely watched for signs of momentum.
Note that the airline stock currently pays a healthy dividend yield of 2.80%, which makes it even more attractive to own for income-focused investors in 2026.
Other Wall Street analysts seem to agree with UBS on EasyJet stock as well, given the consensus rating on the Luton-headquartered low-cost air carrier sits at “overweight” at the time of writing.
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