Following in the footsteps of esteemed investing juggernauts, the ideal of chasing even the best global stocks should generally come second to targeting enterprises in the U.S. It’s going to ruffle some feathers but the harsh reality is that the U.S. represents the greatest economic power in the world. And it’s hard to believe that another nation can usurp America given its tremendous desirability.
As you know, immigration – especially of the undocumented variety – sparks intense political debate. But why do people want to come to the U.S. as opposed to China, Japan or Germany? From advantages such as speaking the international language to leveraging the world’s reserve currency, America enjoys advantages that other countries can’t even begin to hold a candle to.
Still, that doesn’t mean you should ignore top global stocks altogether. With the benchmark S&P 500 index running super-hot, there just might be better, underappreciated opportunities elsewhere. Since the equities sector overall trends in an ebb and flow, it may be time to rotate abroad.
If you’re feeling adventurous, below are (arguably of course) the best global stocks to consider.
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If you’re interested in the hydrocarbon space, your best options may be homegrown enterprises rather than Shell (NYSE:SHEL). We’re talking about stalwarts like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX). If you’ve followed my work in the past few months, you’ll know that I’ve discussed the latter two at great lengths. Fundamentally, hydrocarbons remain vitally important, especially in these economically challenging times.
As you likely know, the electric vehicle market suffered substantially this year due to myriad pressures, including a price war. And that has translated to red ink throughout the sector value chain. So, gasoline-consuming vehicles will still be around for a while, more than likely. But why SHEL, you might be wondering? Why go with global stocks when we have awesome oil and gas players right here?
It all comes down to valuation. Right now, SHEL trades at a trailing-year earnings multiple of 7.68x. In contrast, XOM runs a bit higher at 10.38x. Also, CVX isn’t that far off from its rival at 10.72x. Theoretically, your investment dollars should go further with SHEL, making it one of the top global stocks to consider.
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Anheuser-Busch (NYSE:BUD) is what I like to call a “Jim Jefferies” stock. An Australian comedian who holds dual Australian and U.S. citizenship, Jefferies frequently broadcasts uproariously hilarious takes on controversial American issues. In particular, he made a joke about gun rights advocates having a reactionary mindset that goes on repeat.
Anyways, when I think of that joke, I think of Anheuser-Busch. After a marketing slipup, conservative pundits blasted the company as being “woke.” Fair enough, point taken. However, the criticism went on and on, which made the idea of BUD being one of the best global stocks an intriguing angle to consider.
No, the company shouldn’t go out of its way to offend its core consumers. However, the fundamentals of BUD are so compelling and simple: it’s beer. It’s cheap. What else can you ask for? If you said a change in the chief marketing officer role, you’re in luck. That’s exactly what’s happening.
Now, BUD’s price-earnings ratio without non-recurring items (NRI) of 16.28x – which sits below the median metric of 19.49x – looks mighty appealing. Thus, it may be one of the top global stocks.
An oldie but a goodie, for the most part, Panasonic (OTCMKTS:PCRFY) managed to avoid the devastation of the underlying EV sector. While a consumer electronics firm at heart, the company features an energy business unit. That’s what has largely kept the lights on as Panasonic provides EV battery packs to Tesla (NASDAQ:TSLA). Notably, since the start of the year, PCRFY gained almost 27%.
However, this robust print mostly centers on recent price action. In the trailing five sessions, the security moved up almost 15%. Fundamentally, the shares surged based on Panasonic’s plans to sell a stake in its automotive systems business. To be clear, this unit focuses on cockpit and electronics systems and is different from the energy unit. In turn, PCRFY shot up on broader restructuring hopes, per Reuters.
While an unexpected decision, investors and analysts embrace it. Specifically, Macquarie analyst Damian Thong believes Panasonic must adjust nimbly to current market conditions. “They started by being big and slow, which is fine if the market was slow, but because the markets are changing, they need to move faster,” the expert stated.
Given the trend, PCRFY could rank among the best global stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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