T. Rowe Price: U.S. stocks are overvalued, making other regions potentially more attractive for investment.

The market's skepticism about the US earnings outlook has led to a more favorable environment for regions outside the US, particularly Europe. The acceleration in economic growth and more favorable interest rate environment have created favorable conditions for European banks, which have historically been overlooked by investors. It is noteworthy that the price-to-book ratio of the msci Europe Banks index surpassed 1 for the first time in more than seven years in February, but European bank stocks are still significantly undervalued compared to their pre-global financial crisis levels.