European Utilities Offer Attractive Turnaround Plays

As value opportunities become harder and harder to find in North America, I have set my sights on Europe. Europe has come a long way since the debt crisis of 2011 and the continent's major stock indexes are now trading at levels not seen since before the financial crisis. Indeed, Europe's leading benchmark index, the STOXX® 600 index collapsed 23% during 2011, as worries about the state of the continent's economic situation spread. Now, the index has rebounded to levels not seen since 2006.

Still, despite these gains, there are plenty of companies within Europe's markets that look attractive on a valuation basis. European utilities for example, have suffered more than most during the past few years as rising energy...