11 High Growth International Stocks to Buy
In this article, we discuss 11 high growth international stocks to buy. If you want to see more stocks in this selection, check out 5 High Growth International Stocks to Buy.
Fidelity Research suggests that although numerous factors such as high inflation, rising interest rates, and sluggish economic growth may pose challenges for non-US stock markets in 2023, international stocks may still have the potential to outperform US stocks over the next two decades. The slowdown of globalization, fueled by events such as the Ukraine war, increasing nationalism, and the impact of COVID-19, may contribute to the difficulties faced by non-US markets, which had benefited from globalization for the past three decades.
J.P. Morgan Global Research expects the economy to expand at a slow pace of approximately 1.6% in 2023 due to tightening financial conditions, rough COVID policies in China, and Europe’s natural gas issues. While the global economy is not at a near-term risk of falling into recession, given that the steep decline in inflation promotes growth, J.P. Morgan Research is factoring in a U.S. recession before the conclusion of 2023. In the first half of 2023, the S&P 500 is anticipated to revisit the lows of 2022, but a shift from the Fed could lead to an asset rebound in the later half of the year, pushing the S&P 500 to 4,200 by year-end.
According to a survey conducted by Reuters’ equity analysts, the instability in the worldwide stock markets is still ongoing, as more investors believe that interest rates will remain elevated for an extended period of time. A small majority of analysts predicted a market correction within three months. The global stock market experienced a decline of almost 20% in 2022, but the situation would have been even worse without a late-year surge. This surge was fueled by the expectation that decreasing inflation and slower growth would prompt central banks to end their historic trend of raising interest rates and begin cutting them quickly in the coming months.
Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin, told Reuters on February 23:
"Valuations are stretched across equity markets after the rally year-to-date. The recovery in earnings would have to be quite strong to justify these levels, given that support from falling real rates should remain limited on the back of sticky inflation levels."
A recent survey conducted by Reuters between February 10 and February 22, which involved more than 150 analysts, strategists, and fund managers covering 17 global stock indices, revealed that 56% of respondents anticipate a downturn in their local market within the next three months. However, investors prefer international exposure for a balanced portfolio, and emerging market equities are also hot among Wall Street money managers lately. Some of the top high growth international stocks to buy include SolarEdge Technologies, Inc. (NASDAQ:SEDG), PDD Holdings Inc. (NASDAQ:PDD), and Tenaris S.A. (NYSE:TS). Investors can also check out 10 Best International Dividend Stocks To Buy and 10 Best International Stocks To Buy Today.
Our Methodology
We used a stock screener and filtered for international (excluding USA) companies with year-over-year quarterly revenue growth of more than 30%. From the resultant dataset, we selected the international stocks with the highest revenue growth rates as of the end of the third and fourth quarter of 2022, according to the latest data available for each firm. The list is arranged in ascending order of the year-over-year quarterly revenue growth rate.
High Growth International Stocks to Buy
11. HSBC Holdings plc (NYSE:HSBC)
Number of Hedge Fund Holders: 11
Quarterly Revenue Growth YoY as of December 30, 2022: 38.00%
HSBC Holdings plc (NYSE:HSBC) provides banking and financial services worldwide, operating through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. HSBC Holdings plc (NYSE:HSBC) was founded in 1865 and is headquartered in London, the United Kingdom. On February 20, the company announced that profit earned prior to taxation for Q4 has increased by $2.5 billion, reaching a total of $5.2 billion. This is due to significant growth in reported revenue and a decrease in reported operating expenses. The adjusted revenue increased 38% on a year-over-year basis to $15.4 billion.
On February 21, HSBC Holdings plc (NYSE:HSBC) declared a $1.15 per ADS interim dividend, which is payable on April 27 to shareholders of record as of March 3. The board is also considering the payment of a special dividend of $0.21 per share, which is expected in late 2023, with payment following in early 2024.
RBC Capital analyst Benjamin Toms on February 24 raised the firm's price target on HSBC Holdings plc (NYSE:HSBC) to 775 GBp from 750 GBp and kept an Outperform rating on the shares.
According to Insider Monkey’s fourth quarter database, 11 hedge funds were bullish on HSBC Holdings plc (NYSE:HSBC), compared to 10 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest position holder in the company, with 1.2 million shares worth $40.2 million.
In addition to SolarEdge Technologies, Inc. (NASDAQ:SEDG), PDD Holdings Inc. (NASDAQ:PDD), and Tenaris S.A. (NYSE:TS), HSBC Holdings plc (NYSE:HSBC) is one of the top high growth international stocks to invest in.
10. MercadoLibre, Inc. (NASDAQ:MELI)
Number of Hedge Fund Holders: 75
Quarterly Revenue Growth YoY as of December 30, 2022: 40.80%
MercadoLibre, Inc. (NASDAQ:MELI) was incorporated in 1999 and is headquartered in Montevideo, Uruguay. It operates online commerce platforms in Latin America, including Mercado Libre Marketplace, Mercado Pago FinTech, Mercado Fondo, Mercado Credito, Mercado Envios, Mercado Libre Classifieds, Mercado Libre Ads, and MercadoShops. It is one of the top high growth international stocks to consider.
On February 23, MercadoLibre, Inc. (NASDAQ:MELI) reported Q4 GAAP earnings per share of $3.25, beating market estimates by $0.93. The revenue increased 40.8% year-over-year to $3 billion, exceeding Wall Street consensus by $40 million.
BTIG analyst Marvin Fong on February 24 raised the firm's price target on MercadoLibre, Inc. (NASDAQ:MELI) to $1,400 from $1,245 and maintained a Buy rating on the shares. According to the analyst's research note, the company's Q4 results were impressive, with margins and local currency growth exceeding expectations. BTIG also reported that MercadoLibre's efforts to enhance credit quality have been successful, as evidenced by a decrease in its under-90 day past due ratio from 13% in Q3 to 10% in Q4.
According to Insider Monkey’s Q4 data, 75 hedge funds were long MercadoLibre, Inc. (NASDAQ:MELI), compared to 81 funds in the last quarter. David Blood and Al Gore’s Generation Investment Management is the biggest stakeholder of the company, with 707,061 shares worth $598.3 million.
Here is what Lakehouse Capital specifically said about Mercadolibre, Inc. (NASDAQ:MELI) in its November letter:
“A noteworthy result in November was Buenos Aires based e-commerce leader Mercadolibre, Inc. (NASDAQ:MELI), which posted another impressive quarterly result despite ongoing macro concerns. The company delivered net revenue growth of 45% year-on-year in U.S. dollar terms along with a steady increase in operating profitability, with operating margins increasing 240 basis points to 11%. Its marketplace business experienced strong growth across all key markets – namely Brazil, Argentina and Mexico – and generated $8.6 billion in gross merchandise value, up 32% year-on-year. It was also pleasing to see unique buyers increase 10% to 42.5 million and items purchased per buyer remain broadly stable, indicating stickiness among recently acquired users and market share gains in some of its largest markets, particularly Brazil.”
9. Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 32
Quarterly Revenue Growth YoY as of December 30, 2022: 42.10%
Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil. The company explores for, produces, and markets oil and gas in Brazil and internationally, operating through Exploration and Production, Refining, Transportation and Marketing, Gas and Power, and Corporate and Other Businesses segments. On January 18, Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) announced that it had exceeded its annual production goal of 2.6 million boe per day, with a total production of 2.68 million boe per day for FY 2022.
On December 13, Bradesco BBI analyst Vicente Neto downgraded Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) to Neutral from Outperform with a R$26 price target.
Among the hedge funds tracked by Insider Monkey, Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) was part of 32 public stock portfolios at the end of December 2022, compared to 33 in the prior quarter. Rajiv Jain’s GQG Partners is the largest position holder in the company, with 209.8 million shares worth $2.2 billion.
8. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 41
Quarterly Revenue Growth YoY as of October 30, 2022: 45.00%
Agnico Eagle Mines Limited (NYSE:AEM) is headquartered in Toronto, Canada, and the company engages in the exploration, development, and production of mineral properties in Canada, Mexico, and Finland. On February 16, Agnico Eagle Mines Limited (NYSE:AEM) reported a Q4 non-GAAP EPS of $0.41, in-line with market estimates. The revenue increased 45% year-over-year to $1.38 billion, but fell short of Wall Street consensus by $40 million. It is one of the top high growth international stocks to consider.
On February 17, Barclays analyst Matthew Murphy maintained an Overweight rating on Agnico Eagle Mines Limited (NYSE:AEM) but lowered the firm's price target on the shares to $62 from $65. The company has updated its 2023 production forecast for LaRonde, Fosterville, Kittila, and Pinos Altos, but the range of 3.24-3.44Moz has remained unchanged after the consolidation of Canadian Malartic, according to the analyst.
Among the hedge funds tracked by Insider Monkey, 41 funds reported owning stakes in Agnico Eagle Mines Limited (NYSE:AEM) at the end of December 2022, up from 39 funds in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with approximately 6 million shares worth $311 million.
Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:
“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”
7. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 25
Quarterly Revenue Growth YoY as of December 30, 2022: 57.00%
monday.com Ltd. (NASDAQ:MNDY) was incorporated in 2012 and is headquartered in Tel Aviv-Yafo, Israel. The company develops software applications in the United States, Europe, the Middle East, Africa, and internationally. On February 13, monday.com Ltd. (NASDAQ:MNDY) reported a Q4 non-GAAP EPS of $0.44 and the revenue came in at $149.92 million, beating market estimates by $0.80 and $8.29 million, respectively. Revenue over the period increased 57% on a year-over-year basis, making monday.com Ltd. (NASDAQ:MNDY) one of the top high growth stocks to invest in.
On February 14, Loop Capital analyst Mark Schappel raised the firm's price target on monday.com Ltd. (NASDAQ:MNDY) to $180 from $140 and maintained a Buy rating on the shares. The company's better than anticipated Q4 revenue growth and profitability is increasing confidence in the stock, with operating margins also touching an all-time high and the management providing consensus beating 2023 guidance, the analyst told investors in a research note. Loop Capital also has an optimistic view on the company given its forecasts that monday.com Ltd. (NASDAQ:MNDY) will boost its market share.
According to Insider Monkey’s Q4 data, 25 hedge funds were bullish on monday.com Ltd. (NASDAQ:MNDY), compared to 31 funds in the prior quarter. Josh Resnick’s Jericho Capital Asset Management is the largest stakeholder of the company, with 503,138 shares worth $61.3 million.
6. Ryanair Holdings plc (NASDAQ:RYAAY)
Number of Hedge Fund Holders: 21
Quarterly Revenue Growth YoY as of September 29, 2022: 57.1%
Ryanair Holdings plc (NASDAQ:RYAAY) was founded in 1985 and is headquartered in Swords, Ireland. The company provides passenger airline services in Ireland, the United Kingdom, Italy, Spain, Germany, and other European countries. On January 30, Ryanair Holdings plc (NASDAQ:RYAAY) reported a Q3 GAAP EPS of €0.18 and a revenue of €2.31 billion, up 57.1% year-over-year. The airline flew 11.8 million passengers in January 2023, versus 10.8 million passengers in January 2020.
On February 21, Barclays initiated coverage of Ryanair Holdings plc (NASDAQ:RYAAY) with an Overweight rating and EUR 23 price target. The analyst has an optimistic view of European airlines. Pent up demand and the reopening of Asia and business travel should "overpower weak economics," the firm wrote to investors in a research note.
According to Insider Monkey’s Q4 data, 21 hedge funds were bullish on Ryanair Holdings plc (NASDAQ:RYAAY), compared to 16 funds in the prior quarter. Harris Associates is the largest stakeholder of the company, with 10.8 million shares worth $813.8 million.
Like SolarEdge Technologies, Inc. (NASDAQ:SEDG), PDD Holdings Inc. (NASDAQ:PDD), and Tenaris S.A. (NYSE:TS), smart investors are piling into Ryanair Holdings plc (NASDAQ:RYAAY) for international exposure.
Here is what Artisan International Fund has to say about Ryanair Holdings plc (NASDAQ:RYAAY) in its Q4 2020 investor letter:
“Our top Q4 contributor was Ryanair Holdings, a low-cost European airline. The positive vaccine-related news caused Ryanair and other travel and leisure stocks to rally sharply as markets looked ahead to travel demand’s recovery in 2021. We continue to like Ryanair’s leading market position, low cost base and history of returning capital to shareholders.”
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Disclosure: None. 11 High Growth International Stocks to Buy is originally published on Insider Monkey.
