FRANKFURT (The Street) -- European stocks have been so hot this year that American investors might be wondering if it's too late to join the party.
In fact, many analysts think Europe will continue to outperform U.S. stocks, even with all the uncertainty over Greece.
"Fallout from Greek debt negotiations continues to cast a cloud of uncertainty over the entire currency bloc, which has kept a lid on the euro and likewise equities in the region," said Stoyan Bojinov, an analyst from @etfdb.
The bulls continue to be right about the overall strength of the eurozone recovery. In early June, the euro experienced its largest one-day increase in two months. And despite a recent pullback, the blue-chip Euro Stoxx 50 is up 9% for the year, compared with a 1.5% gain for the S&P 500.
Zacks.com, which just published its hot three euro stocks for June, recommends Delhaize Group (DEG), a supermarket chain operating mostly Eastern Europe, Belgium, Luxemburg and the U.S., and expects a growth of 10.2% for the year.
It also likes Philips Electronics (PHG) because earnings are expected to nearly double this year and the stock trades at 28.3 times earnings, compared with the industry average of 33.6. Zacks also gives AVG Technologies (AVG), a cybersecurity company, a buy rating.
Because of foreign-exchange risk, analysts say U.S. investors should look for funds that are either hedged or able to weather regional fluctuations. ETdb.com rates Wisdom Tree's Inter Hedged Equity (HEDJ) fund made up of European exporters and hedged for the euro as the No. 1 pick on its list of euro equity exchange-traded funds.