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3 International Stocks That Crushed the U.S. Market in 2021

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It has been a great 2021 for Wall Street despite the deadly coronavirus wreaking havoc throughout the year. Not many had expected the markets’ bull run at the time of the COVID-19 outbreak last year, but stocks have managed to deliver more than expected in 2020 and 2021.

It is the same for a handful of international stocks, which have not only played a key role in the rally but also crushed the U.S. markets. Among these, three stocks like Wipro Limited (WIT - Free Report) , 360 DigiTech (QFIN - Free Report) and Tokyo Electron (TOELY - Free Report) , have posted more than more-than-double returns compared to the S&P 500 Index year to date.

Surviving the COVID-19 Bloodbath

The year 2021 started with optimism surrounding the COVID-19 vaccine, which was in the making last year. The vaccine raised hopes after the virus battered industries and the overall global economy in 2020.

However, the announcement of vaccines was followed by yet another wave of coronavirus. The Delta variant was deadlier, resulting in more hospitalizations and deaths in the earlier half of the year. This saw many economies once again going into lockdowns.

On the other hand, the massive vaccination drive helped people protect themselves from contracting the virus and gave them due confidence. Economies started reopening, travel restrictions started being lifted and industries began getting back to performing at the optimum level, thus paving the way for economic recovery.

Markets Performed Despite Challenges

Investors weren’t confident about markets going on rally in 2021. The U.S. government gave away $3 trillion in stimulus to help the economy but at the same time growing pent-up demand sent general prices skyrocketing, thus resulting is soaring inflation across the globe.

Worries of growing inflation also saw central banks like the Fed and the European Commission roll back the fiscal stimulus to combat the coronavirus-led economic loss. This indicates that interest rates are likely to be raised in 2022, with many economies taking the first step already.

Also, the coronavirus massively affected the supply chain globally and the crisis is far from over, resulting in rising input costs for manufacturers and producers.

Despite all these, the global market has had an impressive 2021 and the rally is likely to continue next year. However, the International Monetary Fund has revised down its 2022 global economic growth by 0.1% to 4.9%.

Our Choices

We have narrowed our search to three international stocks that have returned more than double the S&P 500 Index in 2021 and promise to continue performing well in 2022.

Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. WIT serves customers in various industry sectors and operates through three segments: IT Services, IT Products, and India State Run Enterprise Services. 

Wipro’s expected earnings growth rate is 11.5% for the current year and 6.9% for next year. Shares of WIT have gained 70.4% year to date. Wipro carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

360 DigiTech provides a data-driven, technology-empowered digital platform. QFIN, through its subsidiaries, operates a digital consumer finance platform under the 360 Jietiao brand in the People's Republic of China. 360 DigiTech’s platform provides online consumer finance products to borrowers funded by institutional funding partners.

360 DigiTech’s expected earnings growth rate is 48.1% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 6.5% over the past 60 days. Shares of QFIN have gained 86.7% year to date. 30 Digi Tech carries a Zacks Rank #2.

Tokyo Electron Limited is mainly engaged in the manufacture and sale of electronic products for industrial uses. TOELY is the largest manufacturer of IC and FPD production equipment in Japan and the third-largest in the world. Tokyo Electron also offers logistic, facility maintenance, and insurance services. 

Tokyo Electron’s expected earnings growth rate is 65.5% for the current year and 15.4% for next year. The Zacks Consensus Estimate for next-year earnings has improved 6.1% over the past 60 days. Shares of TOELY have gained 54.9% year to date. Tokyo Electron sports a Zacks Rank #1.


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