NEW YORK ( TheStreet) -- European stocks have inspired little enthusiasm lately.Investors worry about sluggish economic growth and debt problems in Greece. But some fund managers argue that the European markets now sell at bargain levels. The price-to-earnings ratio for European stock funds is 11.7, compared with 15.9 for U.S. domestic funds and 15.2 for Asian funds, according to Morningstar. "Europe is selling at a 30% discount to other regions," says Andrew Pringle, a manager at AIM International Growth ( AIIEX). Francis Claro, a manager at Evergreen Global Opportunities ( EKGAX), says concerns about the stability of European governments are exaggerated. The debt problems are manageable, he says. Germany is determined to support Greece, and the Greek government is willing to undergo painful belt-tightening, even if that provokes street demonstrations. "The Europeans will do whatever it takes to avoid defaults," Claro says. To be sure, Europe faces serious problems. The European Commission forecasts that the euro-zone economies will grow only 0.7% this year. Retail sales remain weak as pinched consumers watch their wallets. Still, fund managers say some companies should report solid results by focusing on expanding niches or exporting to fast-growing regions in Asia and Latin America. Alec Walsh, manager of Harding Loevner International Equity ( HLMIX), says he has a heavy weighting in Europe because many companies in the region are champion exporters. Walsh seeks stocks with high returns on equity and solid growth prospects. A favorite holding is Autonomy ( AU.L), a U.K. software producer that increased revenue by 47% in 2009. The company specializes in search engines that enable large corporations to sort through all their in-house information sources, including e-mails and videos. A strong exporter is Swatch Group ( UHRN), the Swiss maker of Omega watches and other high-end brands. Sales dipped last year as the recession took a toll, but Walsh expects the company to grow as the global economy expands. "Wealthy people around the world want expensive watches," he says. Pringle of AIM International Growth prefers high-quality growth companies selling at reasonable valuations. A favorite holding is Sonova ( SOON.SW), a Swiss company that's a dominant maker of hearing aids. The company has a long track record for increasing sales and earnings. With sales soaring in Asia, Sonova expects to increase its revenue by 17% for the current fiscal year.