A few European stocks are offering gains, even as growth in the Continent's economies begins to level off, Katrina Dudley of Franklin Templeton said Tuesday.

"We are expecting the market to go through a consolidation phase," she said. "We've had a 20 percent rally since the beginning of the year, 40 percent from the lows in June and so we think it's time for Europe to kind of just be flattish as investors climb that wall of worry."

Dudley, who oversees the Mutual European Fund (TEMIX), said on CNBC's "Halftime Report" that a strengthening euro has made companies less competitive.

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She also noted that return on equity in Europe stood at 9 percent, while it was 14 percent in the United States.

AP Moller-Maersk, she said, was a shipping company that continued to offer good value.

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"It trades at a 40 percent discount to the sum of its parts, and we think that there's a lot of opportunity as they focus on improving the returns on capital," she said. "And the stock, even though it's had a big move year-to-date, we see a lot of upside."

Dudley's other top picks include and Vodafone.

—By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.