Spanish stocks have emerged as a standout performer in 2025, with the IBEX 35 index climbing nearly 30% year-to-date – outpacing major European and US benchmarks.
The rally has been backed by robust economic growth, resilience corporate earnings, and favorable macroeconomic backdrop.
More importantly, a strong case can be made for continued momentum in Spanish stocks moving forward, according to Anthony Esposito, the chief executive of AscalonVI.
Despite recommending caution on global markets, Esposito believes Spain offers a rare blend of growth, value, and sectoral strength that makes it a compelling bet for investors seeking developed market exposure.
Why does Esposito remain constructive on Spanish stocks?
In a recent interview with CNBC, Esposito said he’s “not a fan of any equity market right now … but a confluence of “compelling” factors keeps Spain an attractive market to invest in 2025.
“If you’re allocating capital to a developed market, Spain makes sense,” he said, citing the nation’s superior growth trajectory and sectoral resilience.
Spain’s economy is forecast to expand by 2.6% this year, supported by solid domestic consumption and rising foreign investment.
Esposito also highlighted Spain’s relatively low trailing price-to-earnings P/E ratio of around 12 compared to Germany and France, which hover near 20.
“Valuations are more grounded here,” he said. The IBEX 35’s composition, dominated by services exporters and domestic-facing firms, adds a layer of insulation from global trade tensions as well.
What Spanish stocks are attractive to own in 2025
Esposito didn’t issue formal buy ratings, but pointed to financials, utilities, and renewables as top sectors with strong momentum in Spain.
Lenders like BBVA and Santander, for example, have benefited from rising interest margins and expanding international footprints.
Meanwhile, infrastructure heavyweight Ferrovial and energy giant Iberdrola are also riding high on increased capital flows and policy tailwinds.
UBS’s recent R.E.V.S. ranking placed Spain second among six major European indexes, with firms like Naturgy, Acciona, Aena, and Bankinter making the top 20 list.
Of these, only Aena received a “Buy” rating, but broader inclusion signals institutional confidence. “Spain’s market has room to consolidate and climb,” Esposito noted.
Spanish stocks: a pocket of opportunity in cautious markets
Despite global headwinds – from inflationary pressures to geopolitical uncertainty – Spain’s stock market continues to defy gravity.
Esposito remains skeptical of broader equity valuations but concedes that Spain offers a rare blend of macro strength and sectoral clarity.
With political stability, a strengthening euro, and a corporate base shielded from tariff shocks, Spain may be one of the few developed markets where fundamentals still justify optimism.
“If I had to pick,” Esposito said, “I’d lean toward Spain.” For investors navigating an increasingly complex global landscape, Spanish stocks may offer not just relative safety – but real upside.
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