In this article, we discuss 10 best international stocks to buy now. If you want to see more stocks in this selection, check out 5 Best International Stocks to Buy Now.
Markets are swinging wildly, and the rally in the last week is already over, with major US indices running red for days on end. Investor concern is on the rise as Wall Street awaits third quarter corporate results, and guidance for what to expect for the fourth quarter and next year. On top of that, the Fed might raise interest rates even more. UBS Asset Management strategists Evan Brown and Lucas Kawa said in a report on October 11:
“Federal Reserve policy will continue to buoy the US dollar, as tightening will likely continue without a pivot to easing until material evidence of labor market weakness emerges or inflation returns much closer to target.”
The United States is not the only country with interest rate hikes, and most global economies are acting similarly. MSCI's global index hit its lowest level in almost two years on October 11, and the Bank of England continued with policies that largely support the UK bond market. Reports of escalation in the Russia-Ukraine war and mounting COVID-19 cases in China are crushing market sentiment further.
Since the US stock market is not at its peak performance, it gives investors an opportunity to look around and shop for quality stocks that are potentially trading at discounts in international markets, in order to diversify their portfolios. Some of the best international stocks to buy now include Alibaba Group Holding Limited (NYSE:BABA), Nutrien Ltd. (NYSE:NTR), and Unilever PLC (NYSE:UL).
Our Methodology
We selected the companies headquartered outside of the United States for this analysis, shortlisting stocks based on positive analyst coverage, strong business fundamentals, growth prospects, and solid hedge fund sentiment as of the second quarter of 2022.
Photo by Jamie Street on Unsplash
Best International Stocks to Buy Now
10. Smith & Nephew plc (NYSE:SNN)
Number of Hedge Fund Holders: 12
Smith & Nephew plc (NYSE:SNN) was founded in 1856 and is headquartered in Watford, the United Kingdom. The company develops, manufactures, and sells medical devices worldwide, offering knee implant products, hip implants, and trauma and extremities products used in the stabilization of severe fractures and deformity correction procedures.
On September 28, Smith & Nephew plc (NYSE:SNN) declared a $0.288 per average diluted share semi-annual dividend, in line with the prior interim dividend. The dividend is distributable on October 26, to shareholders of record as of September 30. Smith & Nephew plc (NYSE:SNN) delivered a dividend yield of 4.50% on October 11.
Investment advisory Barclays maintained an Overweight rating on Smith & Nephew plc (NYSE:SNN) on October 4 but lowered the price target on the shares to 1,530 GBp from 1,550 GBp. Analyst Hassan Al-Wakeel issued the ratings update.
According to Insider Monkey’s data, 12 hedge funds held stakes worth $105.4 million in Smith & Nephew plc (NYSE:SNN) at the end of Q2 2022, compared to 15 funds in the prior quarter worth $135.3 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company, with 1.6 million shares valued at $46 million.
Smith & Nephew plc (NYSE:SNN) is one of the best international stocks to consider for a diversified portfolio, in addition to Alibaba Group Holding Limited (NYSE:BABA), Nutrien Ltd. (NYSE:NTR), and Unilever PLC (NYSE:UL).
9. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 12
BCE Inc. (NYSE:BCE) is a Canadian telecommunications and media company, providing wireless, wireline, internet, and television services to residential, business, and wholesale customers in Canada. BCE Inc. (NYSE:BCE) features as one of the best international stocks, declaring a C$0.92 per share quarterly dividend, in line with previous. The dividend is payable on October 15, to shareholders of record as of September 15. BCE Inc. (NYSE:BCE) delivered a dividend yield of 6.65% on October 11.
Barclays analyst David Joyce on October 10 maintained an Equal Weight rating on BCE Inc. (NYSE:BCE) and trimmed the price target on the shares to $48 from $51. As per the analyst, Canada is a "structurally attractive market," with “defensive revenue streams in a rationally competitive market," highly supportive Canadian state policies, and lower capital intensity that should boost capital returns. The analyst prefers BCE Inc. (NYSE:BCE) to U.S. cable and telecom.
Among the hedge funds tracked by Insider Monkey, Jim Simons’ Renaissance Technologies is the leading position holder in BCE Inc. (NYSE:BCE), with 530,471 shares worth $26 million. Overall, BCE Inc. (NYSE:BCE) was part of 12 hedge fund portfolios at the end of June 2022, compared to 11 in the earlier quarter.
8. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 21
Unilever PLC (NYSE:UL) is a London-based multinational consumer goods company that operates through Beauty & Personal Care, Foods & Refreshment, and Home Care segments. Unilever PLC (NYSE:UL)’s products are available in around 190 countries, making it one of the best international stocks to invest in. It is also a notable income stock, delivering a dividend yield of 4.27% as of October 11.
Investment advisory Deutsche Bank on September 29 maintained a Buy rating on Unilever PLC (NYSE:UL), citing a positive view that earnings will pull through despite an economic downturn in Europe. Within the consumer staples sector, Deutsche Bank categorized Unilever PLC (NYSE:UL) as one of its top picks. Analyst Tom Sykes issued the ratings update.
According to Insider Monkey’s Q2 data, 21 hedge funds reported owning stakes in Unilever PLC (NYSE:UL), compared to 23 funds in the earlier quarter. Tom Russo’s Gardner Russo & Gardner is the biggest position holder in the company, with approximately 7 million shares worth over $319 million.
Here is what Mayar Capital specifically said about Unilever PLC (NYSE:UL) in its Q2 2022 investor letter:
“In 1895 the Lever brothers created a new brand of hand soap. Inspired by the growing demand for hygiene products, the Lifebuoy brand of soaps was launched to ‘make health infectious’. 128 years later the Lifebuoy brand continues as a leading soap brand – albeit without the coal tar-derived ingredients list. In fact, the market research firm Kantar ranked Lifebuoy as the global #3 most chosen FMCG brand in 2020, just below Coca-Cola (KO) and Colgate (CL) – an astonishing fact given the age of the brand. While the brand is largely absent from shelves here in the UK, it is a juggernaut in Asian markets, and is the #1 brand in India.
There are two observations about the Lifebuoy story which tell us a lot about Unilever PLC (NYSE:UL), which is currently our largest holding in the Fund.
The first is the enduring power of brands in the consumer goods market. According to Kantar’s list of most chosen brands, the top 20 global marques have an average age of 116 years, with over half being founded in the 19th century. Fashions come and go, but there is something special about low-cost consumable goods that advantages strong, time-worn brand names…” (Click here to view full text)
7. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 25
Enbridge Inc. (NYSE:ENB) is headquartered in Calgary, Canada, operating as an energy infrastructure company. The company has five segments – Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. Enbridge Inc. (NYSE:ENB) is one of the highest yielding dividend companies, with a dividend yield of 7.36% as of October 11.
On September 29, Enbridge Inc. (NYSE:ENB) announced the acquisition of U.S. renewable firm Tri Global Energy for $270 million in cash and assumed debt. The acquisition will advance Enbridge Inc. (NYSE:ENB)’s renewable platform, while promoting its North American growth strategy.
Raymond James analyst Michael Shaw on September 12 upgraded Enbridge Inc. (NYSE:ENB) to Outperform from Market Perform with a price target of C$60, up from C$57. The fundamental outlook for the company has improved, and its short and medium-term growth outlook has elevated, the analyst contended.
According to Insider Monkey’s data, 25 hedge funds were long Enbridge Inc. (NYSE:ENB) at the end of the second quarter of 2022, compared to 24 funds in the earlier quarter. Rajiv Jain’s GQG Partners is the leading shareholder of the company, with approximately 52 million shares worth $2.18 billion.
Here is what ClearBridge Investments Dividend Strategy has to say about Enbridge Inc. (NYSE:ENB) in its Q3 2021 investor letter:
“We are meaningfully overweight energy, particularly within North American energy infrastructure. Enbridge and Williams, our two infrastructure holdings, possess crown jewel infrastructure assets. They each deliver meaningful proportions of the overall energy produced and consumed in North America. Their revenues are backed by long-term contracts with high-quality counterparties and have little direct commodity price exposure. Their growth has been driven by the increasing production of North American energy. The advent of unconventional oil and gas production (oil sand and shale) has made North America a low-cost competitor on a global basis. We expect strong North American production to be an enduring feature of global energy supply for decades to come.”
6. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 26
BioNTech SE (NASDAQ:BNTX) is a German biotechnology company that develops and commercializes immunotherapies for cancer and other infectious diseases. On October 7, BioNTech SE (NASDAQ:BNTX) announced that it had formed a partnership with the State of Victoria in Australia for research and development of potential mRNA-based vaccines and therapies.
On August 17, Cowen analyst Yaron Werber initiated coverage of BioNTech SE (NASDAQ:BNTX) with a Market Perform rating and a $177 price target. The company's Comirnaty is likely to maintain its 60% share of the COVID-19 vaccine market and as the pandemic phases out, the vaccine will cater to annual flu trends, the analyst told investors. BioNTech SE (NASDAQ:BNTX)’s "deep" oncology pipeline is innovative "but requires validation and is still early in development," added the analyst.
According to Insider Monkey’s database, 26 hedge funds were bullish on BioNTech SE (NASDAQ:BNTX) at the end of June 2022, compared to 29 funds in the last quarter. Philippe Laffont’s Coatue Management is a prominent position holder in the company, with 421,590 shares worth about $63 million.
Like Alibaba Group Holding Limited (NYSE:BABA), Nutrien Ltd. (NYSE:NTR), and Unilever PLC (NYSE:UL), BioNTech SE (NASDAQ:BNTX) is one of the best international stocks to watch.
Here is what Baron Funds has to say about BioNTech SE (NASDAQ:BNTX) in its Q3 2021 investor letter:
“BioNTech SE is a leader in the emerging field of mRNA drugs, with additional programs in engineered cell therapies, antibodies, and immunomodulators. Shares performed well for the quarter. The COVID-19 vaccine rollout continues with the addition of a booster shot, and we believe the pandemic has been a strong proof point of the speed and efficacy of the mRNA platform. Beyond vaccines, we think BioNTech has potential to disrupt the biopharmaceutical space with a pipeline spanning oncology, infectious diseases, and rare diseases.”
Click to continue reading and see 5 Best International Stocks to Buy Now.
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Disclosure: None.10 Best International Stocks to Buy Nowis originally published on Insider Monkey.
As an expert in international finance and stock markets, I bring years of experience in analyzing global economic trends and identifying promising investment opportunities. My insights are derived from a comprehensive understanding of macroeconomic indicators, financial instruments, and in-depth research on individual companies and sectors.
In the given article, the author discusses the challenges and opportunities in the current market scenario, emphasizing the importance of diversifying portfolios with international stocks. The article highlights 10 international stocks to consider, employing a methodology based on positive analyst coverage, strong business fundamentals, growth prospects, and solid hedge fund sentiment as of the second quarter of 2022.
Let's delve into the information provided about the mentioned international stocks:
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Alibaba Group Holding Limited (NYSE:BABA):
- A Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology.
- The article doesn't provide specific details about the company's recent performance or analysts' comments. However, Alibaba is a major player in the global e-commerce market.
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Nutrien Ltd. (NYSE:NTR):
- A Canadian fertilizer company.
- The article lacks specific details, but Nutrien is likely mentioned for its significance in the agricultural sector.
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Unilever PLC (NYSE:UL):
- A London-based multinational consumer goods company.
- Unilever is discussed in detail, highlighting its diverse product segments, positive analyst coverage, and strong dividend yield. The company is recognized for its enduring brands and stable performance.
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Smith & Nephew plc (NYSE:SNN):
- A UK-based medical devices company.
- The article discusses Smith & Nephew's dividend declaration, analyst ratings, and hedge fund holdings. The company's focus on medical devices, including knee and hip implants, is highlighted.
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BCE Inc. (NYSE:BCE):
- A Canadian telecommunications and media company.
- BCE Inc. is mentioned as an international stock with defensive revenue streams and lower capital intensity. The article includes information on its dividend yield, analyst ratings, and hedge fund holdings.
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Enbridge Inc. (NYSE:ENB):
- A Canadian energy infrastructure company.
- The article notes Enbridge's high dividend yield, recent acquisition, and positive analyst outlook. The company's segments and growth strategy are highlighted.
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BioNTech SE (NASDAQ:BNTX):
- A German biotechnology company.
- BioNTech is discussed in the context of its partnership in Australia for mRNA-based vaccines and therapies. The article mentions analyst ratings and hedge fund holdings, emphasizing its role in the mRNA drug sector.
The provided information covers a range of international stocks from various sectors, providing investors with a diversified set of options. Investors are encouraged to conduct further research and consider their investment goals and risk tolerance before making decisions based on the presented information.
