European Beat Factor: Out-of-consensus stocks under BofA Global Research coverage

Research evidence excerpt

European Beat Factor: Out-of-consensus stocks under BofA Global Research coverage

a Laval has the lowest Beat Exhibit 1: Top 10 Beat Factor screen of

Factor score again this month, with our analyst’s 2026 and 2027 EPS estimates 6% and out-of-consensus European stocks

11% below consensus, respectively. Kerry Group is rated Underperform by our analyst, covered by BofA

while 64% of consensus rates the stock a Buy, followed by Underperform-rated UPM at Top 10 Beat Factor stocks

53% and BP at 52%.

Beat

Our analysts remain most positive on tech and industrials Beat Factor Top 10 Factor (100=Most

Our sector analysts’ bottom-up projections imply 17% upside potential in aggregate for BBG Code Name Upbeat)

the European stocks under BofA Global Research coverage over the coming twelve DBK GY Deutsche Bank 100

months, versus 12% upside potential implied by bottom-up consensus estimates. Over STMPA FP STMicroelectronics 99

the coming year, our analysts see the most upside potential relative to consensus for NOKIA FH Nokia 98

ASM NA ASM International 97

tech (35% versus 15%) and industrials (24% versus 13%). BofA analysts expect 18% EPS VACN SW VAT 97

growth for European companies under coverage in 2026, versus consensus expectations MT NA ArcelorMittal 96

of 17%, with financials, industrials and consumer discretionary accounting for most of ANTO LN Antofagasta 95

the difference. ELE SQ Endesa 94

KSP ID Kingspan Group 94

Top 10 outperformed Bottom 10 by 2.5% in last 6 months BNP FP BNP Paribas 93

The Beat Factor Top 10 stocks underperformed the Bottom 10 by 3.7% over the past Source: BofA European Equity Quant Strategy, iQdatabase, BBG, IBES, LSEG Data & Analytics (as of Jul

month, reducing the six-month outperformance to 2.5%. The Top 10 is up 82% relative 13, 2026)