The Greece debt crisis as well as budget woes in other so-called PIIGS nations in the euro zone — Portugal, Ireland, Italy, Greece and Spain – have dominated the news and dominated European stocks markets. The resulting affect of Greece debt problems on euro zone stocks traded in the U.S. as ADR shares has been dramatic, especially among companies like the Bank of Ireland (IRE), National Bank of Greece (NBG), Deutsche Bank (DB) ABB Inc. (ABB), Deutsche Telecom (DT), and Total SA (TOT).

It’s no surprise that financial ADR shares in Europe have taken a tumble. The Bank of Ireland (IRE) is down 51% in the last month. As for National Bank of Greece (NBG), though it is only down about twice as much as the broader market in May the Greek ADR has been in a steady downward spiral all year. NBG stock has lost 53% since January 1. Even Deutsche Bank (DB) hasn’t been spared despite being headquartered in the relatively fiscally sound nation of Germany, giving up over 20% in the last month.

Unfortunately, however, debt fears have bled far beyond financial stock into other sectors. This has pushed down a host of euro zone stocks and Europe ADRs. Swiss electric products manaufaturer ABB Inc. (ABB) is down 23% in the last month or so. Euro zone telecommunications stock Deutsche Telecom (DT) is down 19% in the last few weeks and over 26% year-to-date. European energy giant Total SA (TOT) has lost 23% in the last week and 31% since January 1.

So where to do European stocks and euro zone ADRs go from here? Well bargain hunters may find some incredible P/E ratios that make them salivate — including single-digit price to earnings comparisons for many of these European stocks. Deutsche bank is cruising at a P/E of close to 6 right now, and Total is less than 9. However, it is worth noting that “contagion” or the spreading of debt crises across borders in the euro zone will create a host of uncertainties in the market due to real and imagined economic problems. A low P/E ratio alone may not save a stock when questions of the euro’s solvency persist.

If things turn around some of these stocks may get a huge bounce off the bottom. But until then, most investors aren’t willing to touch them with a 10-foot pole and are simply watching the carnage as these European ADRs continue their dramatic declines.

As of this writing, Jeff Reeves did not own a position in any of the stocks named here.

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