Greece has risen to third place in Bank of America’s ranking of EEMEA equity markets, trailing only South Africa and Turkey, in a report indicating that the Greek stock market has now entered a more mature investment phase.
In the report *The EEMEA Equity Strategist*, the U.S. firm maintains a constructive stance on the region’s equities, but at the same time issues a word of caution, as markets have already largely priced in the positive scenarios, while negative risks have not disappeared.
For the Greek market, the key message is twofold. On the one hand, the country now ranks among the top three markets in the EEMEA region, replacing Egypt, thanks to a combination of valuations, dividends, earnings momentum, and the positioning of international portfolios.
On the other hand, this rise does not mean that Greece is a market based solely on the concept of cheapness. Bank of America shows that the attractiveness of the Greek market has shifted more toward quality, profitability, and shareholder distributions.
In Bank of America’s quantitative model, South Africa retains the top spot with an overall score of 79, Turkey follows with 68, and Greece comes in third with 60. Next are Poland with 57, Egypt with 56, and Hungary with 54. Greece receives a score of 70 on current valuations, 10 in historical valuations, 50 in earnings growth, 60 in price and earnings momentum, 100 in dividends, and 50 in room for improvement relative to international emerging market portfolios.
This picture is revealing. The Greek market does not rank highly because it appears undervalued across all metrics. On the contrary, the low valuation score relative to historical levels indicates that the re-rating of recent years has already been largely reflected in the market.
Strong dividend performance, where Greece receives the highest rating, is the factor that now sets the market apart. This shifts the focus from the old investment narrative of recovery and convergence to a new narrative, more closely tied to earnings generation, cash flows, and capital returns to shareholders.
The positioning of international portfolios is also significant. Bank of America notes that Greece, along with Hungary and Turkey, remains among the only markets in the region with an overweight allocation in international emerging market portfolios. In contrast, Saudi Arabia remains the most underweighted market in the region and more broadly in emerging markets.
For Greece, this has a dual interpretation. On the one hand, it confirms that the market has already gained institutional recognition. On the other hand, it indicates that the potential for new inflows must now be assessed more selectively and not simply on the assumption that the market remains overlooked by foreign investors.
Why PPC is among the top picks
The report’s interest does not stop at the country level. On the corporate side, PPC is the only Greek presence on the list of the top 20 stocks resulting from Bank of America’s quantitative filter for EEMEA.
Public Power Corporation ranks 20th on the list, in the utilities sector, with a total score of 64.2. Its presence on the list is particularly significant because the top twenty is dominated by South African companies, mainly from the raw materials sector, as well as companies from Saudi Arabia and Turkey.
For PPC, Bank of America assigns a score of 65 for current valuations, 9 for valuations relative to their historical levels, 91 for earnings growth, 59 for price and earnings momentum, 72 for dividends, and 61.8 for the margin for improvement from the perspective of international portfolios. The strongest factor is clearly earnings growth, where the company receives a score of 91. This is followed by the dividend picture with 72, a factor also linked to Greece’s overall strength in the distribution sector.
DEI’s low valuation score relative to its historical performance—just 9—indicates that the stock does not appear cheap based on its own past performance. However, this is offset by the estimated earnings growth, the dividend, and the potential for further investment by international capital. In other words, Bank of America’s quantitative model does not view PPC as a classic case of an undervalued stock, but as a company with strong earnings prospects and a solid overall profile to rank among the top twenty in the region.
The composition of the top 20 is also useful for understanding the significance of Greece’s presence. The top three companies are Sasol Limited from South Africa, Northam Platinum also from South Africa, and Tupras from Turkey. The list includes major raw materials and energy companies, such as Sibanye Stillwater, Valterra Platinum, Implats, Gold Fields, Aramco, and Saudi Basic Industries, as well as financial companies such as Momentum Group, Remgro, Sabanci Holding, and Vakif Bank. In this context, PPC stands out as the Greek corporate representative on a list that is primarily focused on commodities, energy, and select financial holdings.
Bank of America notes that the top twenty companies in its filter are now more concentrated among ten South African companies, four Saudi Arabian companies, and three Turkish companies. At the sector level, raw materials remain the most representative sector, while the list is concentrated in six sectors in total, compared to eight last month. This makes the presence of PPC all the more remarkable, as the Greek company does not fit the list’s basic pattern but enters through its own earnings and dividend momentum.
What the individual data points from emerging markets show
The report also makes a broader observation regarding the composition of the corporate filters. While the top twenty is dominated by South Africa and the commodities sector, the bottom twenty is more concentrated in financial companies, though without a clear concentration in any single market.
Bank of America notes that nearly all markets are represented in the lower tier, but financial firms are more numerous, with eight entries. This observation is significant, as it indicates that the positive signal for Greece does not stem from a generalized dominance of the banking sector in the region, but rather from the country ranking and the corporate case of PPC.
In the macroeconomic and investment environment, Bank of America remains constructive on EEMEA stocks, but with a clear warning that investors should not chase excesses. The firm notes that geopolitical stagnation and high energy prices are delaying expectations for a rapid de-escalation and are beginning to affect market hopes for future monetary policy easing by the Fed. As a result, nearly all EEMEA markets recorded mild but steady outflows in May.
Despite the outflows, Bank of America maintains a positive stance on the region, basing its view on a year-end euro-dollar exchange rate of 1.20, a factor it considers structurally positive for emerging markets. At the same time, however, it emphasizes that current valuations have already largely priced in the best-case scenarios, while downside risks remain active. In the same vein, Bank of America’s energy team estimates that Brent will remain above $90 per barrel through early 2027, even in the event of a rapid de-escalation.