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5 Non-U.S. Stocks to Buy as Wall Street Fires on All Cylinders
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U.S. stock markets have been witnessing a dream run this year after a highly disappointing 2022. The impressive bull run of the first seven months of this year halted for a brief period of August to October, only to rejuvenate with more vigor in the final two months of 2023.
Astonishing Statistics in the Last Two Months
In November, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 8.8%, 8.9% and 10.7%, respectively. The momentum continues in December. Month to date, the Dow, the S&P 500 and the Nasdaq Composite — have rallied 3.8%, 3.35 and 4.1%.
Last week, these three indexes posted seven consecutive weeks of winning streak. This happened for the first time since 2017. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have rallied 12.5%, 22.9% and 41.5%, respectively. With just nine days of trading left to complete this year, these statistics are expected to improve more to end an astonishing 2023.
Future Looks Bright
The Fed set the stage for this year’s Santa Claus rally in mid-December after its latest FOMC meeting. U.S. stock markets have soared amid a clear indication from the central bank that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, finally ended.
Moreover, the December FOMC meeting dot-plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024, followed by four more rate cuts of a full one percentage point in 2025.
The dot plot has also indicated three more rate cuts in 2026, which would take down the benchmark lending rate to the range of 2-2.25%. Following the Fed’s decision, the yield on the benchmark 10-Year U.S. Treasury Note fell less than 4% for the first time since March 2023. The yield topped more than 5% in October.
On Dec 14, the Atlanta Fed the U.S. GDP to grow by 2.6% in fourth-quarter 2023, a notable improvement from the 1.2% estimated on Dec 7. This eliminates the fear of a recession in 2024 thereby boosting investors’ confidence in a possible soft landing for the U.S. economy.
Our Top Picks
Stock prices of most of the U.S. companies have skyrocketed in 2023. Aside from U.S. companies, share prices of several non-U.S. companies have also popped this year. We have selected five such non-U.S. companies that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Finally, each of these stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Novo Nordisk A/S (NVO - Free Report) is a global healthcare company and a leader in the worldwide diabetes market with a full portfolio of GLP-1 receptor agonists, modern insulins and human insulins. NVO is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity. NVO operates through two segments: Diabetes and obesity care and Rare diseases.
Novo Nordisk has an expected revenue and earnings growth rate of 18.2% and 18.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1% over the last 30 days. The stock price of NVO has climbed 43.5% year to date.
NetEase Inc. (NTES - Free Report) is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. NTES provides online gaming services that include in-house developed massively multi-player online role-playing games and licensed titles. NTES also provides online advertising, community services, entertainment content, free e-mail services and micro-blogging services.
NetEase has an expected revenue and earnings growth rate of 11.6% and 8.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.3% over the last 30 days. The stock price of NTES has surged 41.7 % year to date.
PDD Holdings Inc. (PDD - Free Report) operates an e-commerce platform in the People's Republic of China. PDD operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverages, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories.
PDD Holdings has an expected revenue and earnings growth rate of 38.6% and 22.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 20.2% over the last 30 days. The stock price of PDD has soared 81.9 % year to date.
Toyota Motor Corp. (TM - Free Report) designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. TM operates in Automotive, Financial Services, and All Other segments.
TM offers subcompact and compact cars, mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks, minivans; trucks, and buses. TM offers vehicles under the Toyota and Lexus brand names. Further, TM provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards.
Toyota Motor has an expected revenue and earnings growth rate of 11% and 45.4%, respectively, for the current year (ending March 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. The stock price of TM has appreciated 32.2 % year to date.
Stellantis N.V. (STLA - Free Report) is engaged in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide.
STLA provides luxury and premium passenger vehicles, pickup trucks, sport utility vehicles, and commercial vehicles, and parts and services, as well as retail and dealer financing, leasing, and rental services. STLA offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, Teksid, and Comau brand names.
Stellantis has an expected revenue and earnings growth rate of 0.7% and 7.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the last 30 days. The stock price of PDD has jumped 65.2 % year to date.
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5 Non-U.S. Stocks to Buy as Wall Street Fires on All Cylinders
U.S. stock markets have been witnessing a dream run this year after a highly disappointing 2022. The impressive bull run of the first seven months of this year halted for a brief period of August to October, only to rejuvenate with more vigor in the final two months of 2023.
Astonishing Statistics in the Last Two Months
In November, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — advanced 8.8%, 8.9% and 10.7%, respectively. The momentum continues in December. Month to date, the Dow, the S&P 500 and the Nasdaq Composite — have rallied 3.8%, 3.35 and 4.1%.
Last week, these three indexes posted seven consecutive weeks of winning streak. This happened for the first time since 2017. Year to date, the Dow, the S&P 500 and the Nasdaq Composite – have rallied 12.5%, 22.9% and 41.5%, respectively. With just nine days of trading left to complete this year, these statistics are expected to improve more to end an astonishing 2023.
Future Looks Bright
The Fed set the stage for this year’s Santa Claus rally in mid-December after its latest FOMC meeting. U.S. stock markets have soared amid a clear indication from the central bank that the current interest rate hike cycle, which elevated the Fed fund rate to a 22-year high of 5.25-5.50% from 0-0.25% in March 2022, finally ended.
Moreover, the December FOMC meeting dot-plot has shown that on average, Fed officials are expecting at least three rate cuts of 25 basis points each in 2024, followed by four more rate cuts of a full one percentage point in 2025.
The dot plot has also indicated three more rate cuts in 2026, which would take down the benchmark lending rate to the range of 2-2.25%. Following the Fed’s decision, the yield on the benchmark 10-Year U.S. Treasury Note fell less than 4% for the first time since March 2023. The yield topped more than 5% in October.
On Dec 14, the Atlanta Fed the U.S. GDP to grow by 2.6% in fourth-quarter 2023, a notable improvement from the 1.2% estimated on Dec 7. This eliminates the fear of a recession in 2024 thereby boosting investors’ confidence in a possible soft landing for the U.S. economy.
Our Top Picks
Stock prices of most of the U.S. companies have skyrocketed in 2023. Aside from U.S. companies, share prices of several non-U.S. companies have also popped this year. We have selected five such non-U.S. companies that have strong potential for 2024. These stocks have seen positive earnings estimate revisions in the last 60 days. Finally, each of these stocks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Novo Nordisk A/S (NVO - Free Report) is a global healthcare company and a leader in the worldwide diabetes market with a full portfolio of GLP-1 receptor agonists, modern insulins and human insulins. NVO is also a key player in hemophilia care, growth hormone therapy, hormone replacement therapy and obesity. NVO operates through two segments: Diabetes and obesity care and Rare diseases.
Novo Nordisk has an expected revenue and earnings growth rate of 18.2% and 18.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 1% over the last 30 days. The stock price of NVO has climbed 43.5% year to date.
NetEase Inc. (NTES - Free Report) is an Internet technology company engaged in the development of applications, services and other technologies for the Internet in China. NTES provides online gaming services that include in-house developed massively multi-player online role-playing games and licensed titles. NTES also provides online advertising, community services, entertainment content, free e-mail services and micro-blogging services.
NetEase has an expected revenue and earnings growth rate of 11.6% and 8.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.3% over the last 30 days. The stock price of NTES has surged 41.7 % year to date.
PDD Holdings Inc. (PDD - Free Report) operates an e-commerce platform in the People's Republic of China. PDD operates Pinduoduo, a mobile platform that offers a range of products, including apparel, shoes, bags, mother and childcare products, food and beverages, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories.
PDD Holdings has an expected revenue and earnings growth rate of 38.6% and 22.2%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 20.2% over the last 30 days. The stock price of PDD has soared 81.9 % year to date.
Toyota Motor Corp. (TM - Free Report) designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. TM operates in Automotive, Financial Services, and All Other segments.
TM offers subcompact and compact cars, mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks, minivans; trucks, and buses. TM offers vehicles under the Toyota and Lexus brand names. Further, TM provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards.
Toyota Motor has an expected revenue and earnings growth rate of 11% and 45.4%, respectively, for the current year (ending March 2024). The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. The stock price of TM has appreciated 32.2 % year to date.
Stellantis N.V. (STLA - Free Report) is engaged in the design, engineering, manufacturing, distribution, and sale of automobiles and light commercial vehicles, engines, transmission systems, metallurgical products, mobility services, and production systems worldwide.
STLA provides luxury and premium passenger vehicles, pickup trucks, sport utility vehicles, and commercial vehicles, and parts and services, as well as retail and dealer financing, leasing, and rental services. STLA offers its products under the Abarth, Alfa Romeo, Chrysler, Citroën, DS, Dodge, Fiat, Jeep, Maserati, Ram, Opel, Lancia, Vauxhall, Peugeot, Teksid, and Comau brand names.
Stellantis has an expected revenue and earnings growth rate of 0.7% and 7.7%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 0.1% over the last 30 days. The stock price of PDD has jumped 65.2 % year to date.