Lately, we have been particularly interested in the markets of Southern Europe, often referred to historically in financial circles as the PIGS countries (Portugal, Italy, Greece, and Spain). This week, our focus lands on Italy and our Top 10 list for the FTSE MIB, which tracks the performance of the Milan stock exchange.
Investing in Italy in 2026 offers a completely different dynamic compared to the tech heavy indices currently dominating the headlines. The Italian economy has always been turbulent, but growth is being actively supported by strong corporate investments and a rapidly accelerating services sector. While exports and domestic consumption have seen a slight slowdown due to global geopolitical tensions, the underlying foundation remains resilient.
For investors, the MIB Top 10 presents some stable players. Looking at the companies that made it to our Top 10, it was interesting to see that four out of the ten are energy and utility companies. Italian firms are successfully adapting to new global realities, making massive investments in infrastructure, digital transformation, and defense. There are also options for value investors and those looking for robust dividend yields.
Name | 360° View | Sentiment | Combined | Value | Growth | Safety |
|---|---|---|---|---|---|---|
1. Large • Electric Utilities | 96 | 73 | 98 | 78 | 89 | 56 |
2. XX-Large • Oil & Gas Integrated | 92 | 25 | 100 | 77 | 95 | 86 |
3. X-Large • Semiconductors | 86 | 41 | 98 | 69 | 79 | 78 |
4. Large • Construction Materials | 86 | 23 | 96 | 58 | 83 | 98 |
5. X-Large • Multi-Utilities | 81 | 80 | 66 | 86 | 13 | 79 |
6. X-Large • Other Financial Services | 79 | 21 | 96 | 86 | 71 | 60 |
7. Large • Gas Utilities | 76 | 63 | 81 | 39 | 96 | 59 |
8. Large • Pharmaceuticals | 75 | 55 | 75 | 66 | 61 | 60 |
9. X-Large • Heavy Machinery | 74 | 27 | 92 | 87 | 91 | 39 |
10. X-Large • Automobile Manufacturers | 72 | 94 | 52 | 6 | 61 | 92 |
Our 360° View gives you a balanced look at these companies. But if we switch the Top 10 to rank by Sentiment, Ferrari actually takes the absolute lead. I was a little surprised to see it top the list, which is a clear sign of the enduring power of luxury brands. Its exceptionally high Sentiment rank pushed it into the Top 10, showing that I am not the only one happy to see Ferrari perform so well financially, even if Scuderia’s recent Formula 1 performance has left some fans wanting more.
The Value Winners
On the other hand, if you are a bargain hunter and switch the ranking to Value, the value stocks in the index are Nexi, A2A, and Leonardo. Speaking of Leonardo, this aerospace and defense company is having a fantastic year. Their Q1 2026 results showed a 31% surge in orders, and they just updated their 2026 to 2030 industrial plan, targeting a massive 142 billion euros in cumulative orders over the next five years.
Find the Top 10 stocks with the best growth, safest financing, or market sentiment for your own portfolio.
Here is some more info on our Top 10 stocks in the MIB:
- Enel: A major player in electric utilities. Enel recently presented an ambitious 53 billion euro strategic plan for 2026 to 2028, heavily focusing on grid expansion and renewables to meet the growing electricity demand from data centers and artificial intelligence.
- Eni: An integrated oil and gas giant. Following a strong first quarter in 2026, Eni just raised its share buyback program to 2.8 billion euros and continues to deliver impressive exploration results across multiple continents.
- STMicroelectronics: A leading semiconductor manufacturer. The company is seeing early upside from AI data centers and low-Earth-orbit satellites, expanding its addressable market significantly with its updated 2026 to 2028 targets.
- Buzzi Unicem: A global producer of construction materials. The company is currently focusing heavily on decarbonization projects and carbon capture technology to modernize its cement production.
- Hera: A multi-utility company providing energy, water, and environmental services. Hera continues to expand its green infrastructure and waste management capabilities across northern Italy.
- Poste Italiane: Much more than traditional mail. The company is pushing deeper into digital wealth management and expanding its logistics network to support the booming e-commerce sector.
- Italgas: Europe's leading gas distributor. Italgas is making headlines with massive investments in digitizing its network to make it fully ready for future hydrogen distribution.
- Recordati: A global pharmaceutical company. Recordati is actively expanding its rare disease portfolio through targeted acquisitions and successful new drug approvals.
- Iveco: A manufacturer of commercial vehicles and heavy machinery. The company is gaining strong traction with new contracts for its modern fleet of zero-emission electric and hydrogen buses.
- Ferrari: The iconic luxury sports car manufacturer. Ferrari reports incredibly strong order books stretching well into the future, driven by relentless consumer demand for its exclusive models.