If you are an investor that primarily looks at domestic companies for your portfolio, you are missing out on a whole world of additional opportunities for growth and diversification. International stocks can offer U.S. investors exposure to rapidly expanding economies, lower their geopolitical risk, and provide more chances to buy companies with lower valuations. While these types of investments occasionally come with added risk, most successful investors understand that the benefits of adding a few international companies to their portfolios outweigh the potential downsides.
Navigating international stocks can be a tricky endeavor if you aren’t familiar with the countries that these businesses operate in. That’s why we’ve put together a list of 3 intriguing international stocks to buy now so that you can get a better sense of the stocks to consider for exposure to countries outside of the U.S. Let’s take a deeper look below.
First up is ArcelorMittal (NYSE:MT), a Luxembourg-based holding company that owns and operates steel, iron ore manufacturing, and coal mining facilities in Europe, North and South America, Asia, and Africa. While this company might not be a household name, it’s the largest steel manufacturer in the Americas, Africa, and Europe and a company that is focused on using innovation and technology to create smarter steels that are more efficient, use less energy, and emit less carbon.
Steel stocks have been performing very well in the market lately, and adding an industry-leading company like ArcelorMittal makes a lot of sense given their recent strength and the record high steel prices. It’s also nice that ArcelorMittal is a steel company that has a unique global portfolio that offers access to growth markets outside of the United States. ArcelorMittal stock has rallied over 21% year-to-date and should continue to be a strong performer as long as steel prices remain high in Europe and around the world. There’s also a share buyback program worth $570 million that could help to boost the stock price this year, which is another strong selling point to consider.
2. Ozon Holdings
The chances are good that you don’t own any companies that are based in Russia, which is why adding shares of the leading e-commerce platform operating in the country might pay off. Ozon Holdings (NASDAQ:OZON) is an intriguing stock for several reasons. Consider the fact that Russia is a country where e-commerce hasn’t taken off yet, as e-commerce penetration in the country is right around 6%. That tells us that Ozon Holdings has a huge opportunity to grow as Russians start to pick up on how convenient and cost-friendly e-commerce can be.
The company already operates one of the largest logistics networks in the country which it continues to expand, and at this time the company estimates over 85 million people in Russia have access to the company’s couriers and pick-up points. Ozon also recently launched a loan and credit service that could help to provide quick and seamless access for merchants and customers. Finally, the company’s number of orders increased to 73.9 million and gross merchandise volume hit RUB 197.4 billion in 2020, representing a year-over-year increase of 132% and 144%, respectively.
Another quality international company that might fit well in your portfolio is Nestle (OTC:NSRGY), which is the largest food and beverage manufacturer in the world by sales. With iconic brands including Nestle, Nescafe, Purina, Perrier, and more, you know you are getting a great company with a diverse product portfolio here. Nestle also owns about 23% of French cosmetics company L’Oreal and its earnings have been quite resilient throughout the pandemic. It’s also worth noting that Nestle has been focused on repositioning itself as a nutrition, health, and wellness company which could pay off in a big way as consumer preferences change over time.
Nestle stock offers investors a 2.73% dividend yield and has increased its dividend for 26 consecutive years, which is just the kind of consistency that long-term investors should be attracted to. In 2020, the company reported organic growth of 3.6%, and earnings per share increased by 3.5% in constant currency. Nestle expects a continued increase in organic sales growth toward a mid-single-digit rate in 2021 and the company’s global distribution network should allow it to continue successfully rolling out new brands on a global scale for years to come.