FRANKFURT (The Street) -- Is Europe still a better bet than the U.S.?

Though both stock markets have been pummeled over the past month, analysts think theEurozone continues to offer the best prospects for investors.

"The selloff in Europe has been less than that seen in the U.S.," says Schwab's Chief Global Investment Strategist, Jeff Kleintop. "We expect non-U.S. developed markets like Europe to continue to outperform the U.S."

Europe actually has fared about the same as the U.S. during the recent market turbulence.

London's FTSE All Share Index slid 10% in August, putting it in correction territory, and is now down about 6% from last month's level. The S&P 500, meanwhile, fell 12% from its peak in August and is now down 8%. A broad European measure, the EuroStoxx 600, actually did worse, falling 15% from its August high and now down 12% from that level.

Still, futures on theEuro STOXX 50, Germany's (DAX) - Get Report, France'sCAC and Britain'sFTSE 100 are all sending bullish signals.

Europe has one big advantage over the U.S.--thestimulatory monetary policies launched earlier this year by the European Central Bank. The Federal Reserve, meanwhile, has not only ended its stimulus program but is moving towardraising interest rates.

"Europe continues to display better earnings growth, improving economic momentum as evidenced in leading indicators, more attractive valuations, and policy support from the European Central Bank, contributing to ongoing outperformance as the Fed moves towardraising interest rates in the U.S.," Kleintop says.

Of course, that doesn't mean investors should shun the U.S. Many analysts think both markets are poised for gains, though Europe still has the edge.

"In this environment, we remain constructive on U.S. and Europe equities, and prefer sectors exposed to domestic demand," wrote Deutsch Bank's David Folkerts-Landau last week. "In credit, Europe should outperform the U.S. given lower exposure to commodities andless sensitivity to U.S. rates."

Analysts expect big-cap stocks in both the U.S. and Eurozone to continue to perform strongly. That's because they benefit the most from low interest rates, which the Fed and ECB are maintaining.

"We remain overweight on international developed equities," said Sean Lynch, Co-Head of Global Equity Strategy at Wells Fargo Investment Institute. "Our preference for investors is to look first to U.S. large-cap equities, followed by international developed, and lastly, emerging-market stocks."

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No matter the continued enthusiasm for U.S. investment, however, there is clearly recognition that higher rates in the U.S. and ongoing tailwinds of instability in emerging markets, starting with China, could push more American investors to the relative stability and increasingly good performers in the EU.

Within Europe itself, Kleintrop believes that there will be "a shift to cyclical sectors." He also anticipates that "the Tech sector will outperform Telecom and Utilities."

The biggest reason analysts are bullish on consumer-related Euro tech right now has nothing to do with the ECB or Fed. Lower oil prices are helping to stimulate demand in the consumer retail sector overall, impacting the performance of European companies with both domestic and export demand, especially in the tech sector.

For example, Swiss watchmaker Swatch (SWGAF) rose 2.7 percent after Chief Executive Nick Hayek told press on Sunday that he was not worried by the news out of China, according to Reuters.

The top gainer on the FTSEurofirst 300 over the weekend was Arm Holdings, a British multinational semiconductor and software design company. The company licenses chip designs used in Apple (AAPL) - Get Report productsincluding iPhones.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.