Which European stocks are particularly well-positioned to outperform over the remainder of 2008? Allan C. Nichols, CFA, an equities strategist and editor of Morningstar International Investor newsletter, highlights five European stocks that have received a five-star rating from Morningstar. In addition, he gives a broad overview of the case for investing in Europe:

"Despite the strong euro and other currencies, most of the economies continue to do well. Although there has certainly been a slowdown in Ireland, Spain, and, to a lesser extent, the United Kingdom, most of the countries are doing well as exports remain surprisingly strong. Many of the companies I'll discuss are benefiting from continued growth in emerging markets, providing products or services without the direct risk of establishing headquarters in these areas."

With that in mind, Allan C. Nichols explains the investment rationale for BT Group (ticker: BT), Veolia Environment (ticker: VE), Siemens (ticker: SI), Novartis (ticker: NVS), and Thomson (ticker: TMS). According to Nichols, each of these five European stocks has a built-in margin of safety, just in case the investment scenarios don't turn out quite as planned.

NOTE: Please keep in mind that TradeKing does not specifically endorse any of the securities or trading strategies mentioned. Depending on your risk-reward profile, this trade may or may not be suitable for your portfolio. The stocks mentioned are for educational purposes only.

[image: Map of Europe via Wikimedia Commons]

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