These are Credit Suisse's top European stock picks right now

Published Wed, May 4 202212:30 AM EDT

Credit Suisse has named its favorite European stocks for the second quarter, including a "top of the crop" list of under-the-radar names. It comes after a volatile first quarter. The European Stoxx 600 index fell 6.55% in the first three months of the year, as markets faced a barrage of headwinds including soaring inflation, rising interest rates and the Russia-Ukraine war. Euro zone inflation hit a record high for the sixth consecutive month in April , coming in at 7.5%. Meanwhile, growth looks sluggish, with a GDP rate of 0.2% for the first quarter — and there are growing concerns of a possible recession in the region. Looking ahead, Credit Suisse updated its top investment ideas for the second quarter on April 29, revealing its "most preferred" outperform-rated stocks. The list includes a number of new additions, such as German automaker BMW , food delivery company HelloFresh and U.K. insurer Prudential . On BMW, analysts led by Richard Carlson outlined a number of reasons for liking the stock, including its "strong geographic mix," opportunities for growth and the fact that it was an early mover in electric vehicles. Read more ‘Conviction sell’: UBS says avoid these global stocks amid rising headwinds Credit Suisse favors Hello Fresh for its "unique combination" of growth, profitability and liquidity. It also said the stock looks undervalued, given it is trading below its historical average and its peers in Europe. Prudential has "long-term structural opportunities" right now, and has posted strong growth, according to Credit Suisse. It said the stock has a "very attractive valuation" compared to its peers. 'Top of the crop' Credit Suisse also identified a number of its favorites as "top of the crop" stocks. It describes these as the "highest-conviction out-of-consensus top picks," which also look attractive in terms of valuations. Stocks that make this list include Italian energy company Enel , U.K. investment firm Man Group and German steel giant ThyssenKrupp . Another of Credit Suisse's lists is dubbed "out on a limb" — and features stocks the bank says are "highest-conviction and most differentiated top picks." Outperform-rated stocks on this list include French gas company Air Liquide , U.K. consumer goods giant Unilever and Danish wind energy company Vestas .

A Swiss flag flies over a sign of Credit Suisse in Bern, Switzerland

FABRICE COFFRINI | AFP | Getty Images

Credit Suisse has named its favorite European stocks for the second quarter, including a "top of the crop" list of under-the-radar names.