3 Growing Global Stocks You May Not Have Considered

Hot take: There’s nothing inherently superior about being a U.S. listed company.

Sure, U.S. stocks are more accessible, and tend to attract more attention — but that doesn’t mean that there aren’t strong prospects elsewhere in the world. 

Plus, while American stocks have historically been strong performers, hedging to counteract downturns or the effects of geopolitical developments is never a bad idea. 

That said, let’s take a look at some foreign stocks you may not have considered.

I located and researched all of the tickers below using our quant ratings system, Zen Ratings. The system tracks 4600+ stocks — most of them are U.S.-based, but there are still some excellently-rated overseas stocks that could make meaningful additions to your portfolio. 

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1. Qifu Technology (NASDAQ: QFIN)

This company operates in a very specific and very interesting niche — artificial intelligence (AI) credit services. The company currently acts as an intermediary, matching clients with financial institutions. While that does limit revenue, this facilitation-driven model is also asset-light.

At present, Qifu Technology is partnered with more than 160 financial institutions — and serves more than 250 million clients in China. While the company initially focused on underserved individuals and small businesses, it has since expanded — and we’ve seen plenty of examples of how strong domestic operations lead to international success for Chinese ventures.

QFIN stock has a Zen Rating of A. At present, it ranks in the top 5% of the equities we track — and stocks with this distinction have historically provided an average annual return of 32.52%.

In the last 365 days, QFIN shares have outperformed that mark by a wide margin — with a 112.18% return. The average 12-month price target from Wall Street analysts implies a 23.94% upside. We’ll have to dive into the stock’s Component Grade ratings to decipher why this surge has occurred — and why it might continue.

Value is QFIN’s strongest suit — the stock is currently trading at a price-to-earnings (P/E) ratio of just 6.48x, and a price-to-earnings growth (PEG) ratio of 0.78x. In this regard, the stock ranks in the top 5% of the equities we keep track of.

On account of its current uptrend, the stock also ranks in the top 7% in terms of momentum — and despite strong expansion, it maintains a healthy checkbook, clocking in in the top 10% in terms of Financials.

QFIN exists at several interesting intersections — the business model isn’t particularly beholden to tariffs and trade disputes, it’s an early mover, and software-based. At its present valuation, it’s a bargain — and provides a simple way to gain exposure to a dynamic and emerging market while reducing the overall risk of your portfolio.

Lastly, the business is on a winning streak — it has posted earnings per share (EPS) beats for 4 consecutive quarters, having outperformed consensus expectations by quite a wide margin in each quarterly report.

2. Karooooo (NASDAQ: KARO)

Based in Singapore, Karooooo (NASDAQ: KARO) maintains a comprehensive cloud-based platform that seeks to optimize fleet management, asset tracking, compliance, and last-mile deliveries.

KARO shares also have a Zen Rating of A. The stock ranks in the top 4% of equities — but it has flown under Wall Street’s radar thus far, as only 1 analyst covers it.

KARO is also currently the 11th highest rated stock in the App industry, which has an Industry Rating of A.

That’s all well and good — but let’s get down to the nitty gritty details. A key reason behind such a high rating is the fact that the company has consistently managed to outperform expectations. Karooooo has provided 7 earnings beats in a row — and each time, EPS outperformed consensus estimates by double digits, percentage-wise.

Sentiment — which factors in short interest, insider selling, and analyst revisions, is KARO’s strongest rating — in this category, it ranks in the 95th percentile of stocks. However, it also earns high marks in terms of Momentum and Artificial Intelligence — as KARO ranks in the top 13% in both of those categories, indicating the presence of a strong uptrend supported by the findings of a neural network trained on more than 20 years of fundamental and technical data.

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3. Taiwan Semiconductor Manufacturing (NYSE: TSM)

Our two prior picks were relatively under-the-radar — Taiwan Semiconductor Manufacturing (NYSE: TSM) is anything but. An essential lynchpin in the global semiconductor industry, TSM maintains both a technological advantage as well as the benefits of scale.

While the company is a perennial subject of geopolitical risks, the markets evidently find future prospects more enticing — TSM shares have seen a 22.21% gain in the past year.

At present, Taiwan Semiconductor Manufacturing stock ranks in the top 14% of equities — netting it a Zen Rating of B. Stocks with that distinction have provided an average annual return of 19.88% since the turn of the century.

Wall Street analysts are currently projecting an upside of 19.8% for TSM — roughly in line with the expectations for its Zen Rating.

While it does operate in a highly capital-intensive industry, TSM has managed to meet or outperform analyst estimates in the last 9 consecutive quarters. A key driver of this continued outperformance is the semiconductor titan’s healthy balance sheet — in terms of Financials, TSM ranks in the top 3% of stocks.

At its core, this is a sympathy play — while TSM likely won’t see the huge surges to the upside characteristic of Nvidia, for example, it remains a key provider with a stable business model that continues to benefit from high demand from dynamic, growing industries.

—> If you’re interested in more stocks with strong potential, check out this screener

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