Top International Stocks You Should Know
Welcome to the world of top international stocks, where 2024 holds great promise for smart investors. Diving into global markets offers more opportunities than just sticking to domestic stocks.
This article reviews the top 10 foreign stocks to buy now. Despite predictions of a recession, the American economy continues to grow, showcasing a 4.9% GDP increase in Q3 of 2023, the fastest in two years.
However, inflation has reduced real disposable income by 1%, and the personal savings rate has dropped significantly. Meanwhile, other developed economies like Germany and the U.K. are not faring as well.
Germany may face a recession, with a predicted 0.4% GDP contraction in 2023, yet it’s expected to surpass Japan as the world’s third-largest economy. On the other hand, Japan’s GDP growth remains stagnant, and China, the world’s largest economy in per capita terms, is struggling post-COVID-19.
China faces challenges from its zero COVID policy and a troubled real estate sector, leading to a massive $137 billion bond issuance to stimulate the economy and manage deficits. These global economic conditions create a complex backdrop for investors considering foreign stocks in 2024.
Top international stocks that will rise
Investors are increasingly eyeing emerging markets for long-term gains. These rapidly developing regions come packed with companies that have large market capitalization and offer high dividend yields.
From the vibrant United States to the bustling markets of Asia, the world offers a wide range of investment options. Whether you’re into big, well-known companies or newer, innovative ones, understanding your international stock options is key.
Tools like Vanguard Total make it easier to navigate these diverse markets, helping you make choices that fit your investment goals.
Get ready to explore the top international stocks of 2024 and embark on a rewarding global investment journey.
Top International Stocks Watch List
Ferrari NV (RACE)
Sector: Consumer Cyclical
Business Country: Italy
Ferrari, the iconic Italian luxury sports car manufacturer, has consistently shown strong brand loyalty and pricing power. Known for its exclusive vehicles and a rich history in motorsports, Ferrari has expanded its portfolio to include lifestyle products, further solidifying its luxury status. The company’s strategic focus on limited production maintains the exclusivity of its brand and supports strong pricing.
Yum China Holdings Inc (YUMC)
Sector: Consumer Cyclical
Business Country: China
As the largest restaurant company in China, Yum China operates popular brands like KFC, Pizza Hut, and Taco Bell. With a deep understanding of the Chinese market, innovative menus, and a robust digital presence, Yum China is well-positioned to cater to China’s growing middle class and the increasing demand for quick-service restaurants.
Ambev SA (ABEV)
Sector: Consumer Defensive
Business Country: Brazil
Ambev, a subsidiary of Anheuser-Busch InBev, is a dominant player in the beverage sector in Latin America. The company boasts a diverse portfolio of beer and soft drink brands. Ambev’s strong distribution network and continuous innovation in products and packaging make it a solid player in the region’s consumer market.
Nestle SA (NSRGY)
Sector: Consumer Defensive
Business Country: Switzerland
Nestle is the world’s largest food and beverage company. Its diverse product portfolio includes leading brands in coffee, water, pet care, and infant nutrition. Nestle’s commitment to innovation, sustainability, and adapting to consumer trends supports its long-term growth.
Accenture plc (NYSE:ACN)
Sector: information technology
Business Country: Canada
Accenture plc (NYSE:ACN) is an information technology company that provides companies with consultancy services. The firm is currently busy expanding its international portfolio, as it acquired a Canadian infrastructure consulting provider in October 2023.
After digging through 910 hedge funds portfolios for Q2 2023, Insider Monkey discovered that 56 were Accenture plc (NYSE:ACN)’s investors. Guardian Capital’s GuardCap Asset Management owns the largest stake among these, which is worth $576 million.
Coloplast A/S (CLPBY)
Sector: Healthcare
Business Country: Denmark
Coloplast specializes in products and services for personal medical care related to ostomy, urology, continence, and wound care. The company has a reputation for quality and innovation, providing products that enhance the quality of life for its users.
Novartis AG (NVS)
Sector: Healthcare
Business Country: Switzerland
Novartis is one of the largest pharmaceutical companies by both market cap and sales. The company focuses on patented drugs in areas like cardiovascular, neuroscience, oncology, and immunology, with a strong pipeline of potential new products.
Canadian National Railway Co (CNI)
Sector: Industrials
Business Country: Canada
Canadian National Railway is a leading transportation and logistics company, with a rail network spanning Canada and mid-America. CNR’s comprehensive range of services makes it a crucial component of the supply chain in North America.
Taiwan Semiconductor Manufacturing Co Ltd (TSM)
Sector: Technology
Business Country: Taiwan
TSMC is the world’s largest dedicated independent semiconductor foundry. The company plays a pivotal role in the global semiconductor supply chain, providing cutting-edge manufacturing capabilities and a broad range of technologies to clients worldwide.
How can I trade foreign stocks?
You can invest in foreign stocks in the U.S. through several methods. For instance, you can invest in Internationally Focused Funds. The simplest and safest way is by investing in ETFs or mutual funds that include international companies.
For example, the Vanguard FTSE Europe ETF gives you stakes in over 1,300 European companies, while the iShares MSCI Emerging Markets ETF offers exposure to over 1,200 companies from countries like China, India, and Brazil.
Another option is the iShares PHLX Semiconductor ETF, which includes U.S. companies and foreign chipmakers like Taiwan Semiconductor Manufacturing.
You can purchase shares of foreign companies listed on U.S. exchanges such as Nasdaq or NYSE. These shares are often in the form of ADRs, representing a set number of shares from the company’s home market. For instance, an ADR share of iQiyi on the Nasdaq is equivalent to seven ordinary shares on the Chinese exchange. Some ADRs are available over-the-counter (OTC) but may not provide the same shareholder rights as shares from the company’s home market.
Gain Direct International Access through a Broker
Another method is using a brokerage to directly access the exchange where the company is listed. You can open a global account with a U.S. brokerage or set up an account in the target country. However, this approach may involve additional fees, taxes, and regulations, and your investment won’t be protected by U.S. securities laws. There might also be challenges in seeking legal remedies through foreign courts.
What risks come with investing in international markets?
Although the rewards of investing in international stocks can be high, there are some risks to consider. Political instability and other developments in the country can devalue an investment, and the values of currencies fluctuate.
Particularly in emerging markets, you may have relatively poor visibility into a company’s business operations and other factors that affect valuations.
In addition to political instability, international markets often see outsized impacts when economic conditions worsen. High levels of inflation, rising interest rates, Russia’s invasion of Ukraine, worsening relations between the U.S. and China, and other factors have all combined to weaken the global growth outlook, and some regions are facing intense headwinds.
