In this article, we discuss the 12 high growth international stocks to buy. If you want to read about some more high growth international stocks, go directly to 5 High Growth International Stocks to Buy.
There is general optimism on Wall Street that the Federal Reserve in the United States will be able to achieve a soft landing for the economy in 2024, leading to interest rate cuts that will propel growth in sectors like technology and healthcare. After the recession fears of 2022 and 2023, this is welcome news for many investors. The benchmark indexes of the stock market are soaring as a result. The S&P 500 is up close to 25% year-to-date. Meanwhile, the NASDAQ Composite has climbed nearly 45% during this time.
To put these numbers into wider context, investors would do well to remember that the NASDAQ Composite had plunged more than 33% in 2022 at the height of recession fears. Even during the 2020 pandemic, when tech-heavy growth stocks exploded in value, the index had ended the year up nearly 44% in value. The latest growth figures mean that the index is on track to have another record year at the market. Experts predict that 2024 will be much of the same, with artificial intelligence a key driver of growth.
Having international stocks in the portfolio is one of the major signs of diversification in the present marketplace. Some of the top high growth international stocks to monitor in this context include Shopify Inc. (NYSE:SHOP), ASML Holding N.V. (NASDAQ:ASML), and Roivant Sciences Ltd. (NASDAQ:ROIV). Harley Finkelstein, the chief of Shopify Inc. (NYSE:SHOP), recently outlined the growth strategy of his firm during the third quarter earnings call, noting the firm was aiming to be faster, more agile, and ready for sustained profitable growth in 2024.
“No other platform has built for every facet of commerce like Shopify has, whether it’s online or in person, SMB or enterprise, direct-to-consumer or wholesale, domestic or global. We are multidimensional and moving quickly to expand our unified commerce platform to not only remove barriers for merchant success, but also to help them thrive. From AI to Checkout to Shop Pay, we are making the hard things easy and everything else possible. At Shopify, we believe AI is for everyone, and its capabilities should be captured and embedded across the entirety of a business.
We’ve integrated Shopify Magic, our suite of free AI-enabled features across our products and workflows, and merchants are already finding success with unblocking productivity and creativity. Shopify Magic can take the power of Shopify and a merchant’s own data to make it work better for them. Whether it’s enabling unique personalized page and content generation, like instantly crafting an ‘about us’ page in your brand voice and tone or building a custom page to showcase all the sizes available in your latest product collection. We are equipping businesses with more ways to enhance their workflow and streamline daily operations so they can focus on what matters most, growing their business.
Moving on to Shopify Checkout. We continue to invest into building the most seamless, secure, and efficient checkout experience for our merchants. Since launching Checkout Extensibility, our new way to customize Shopify Checkout last year, we’ve seen improvements across our merchant base. It is more adaptable, loads faster, and converts better.”
Our Methodology
The companies that have quarter-over-quarter sales growth of more than 20% and yearly sales growth of above 5% were selected for the list. Businesses in high growth sectors like tech and healthcare were preferred. Only the firms based outside the United States but having an international reach were considered and ranked according to hedge fund sentiment. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2023 was used to identify the number of hedge funds that hold stakes in each firm. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
A portfolio manager in front of their computer screen, evaluating a variety of mid-cap stocks.
High Growth International Stocks to Buy
12. BeiGene, Ltd. (NASDAQ:BGNE)
Number of Hedge Fund Holders: 13
BeiGene, Ltd. (NASDAQ:BGNE) is a biotechnology company that develops and commercializes oncology medicines worldwide. On November 10, investment advisory Bank of America maintained a Neutral rating on BeiGene, Ltd. (NASDAQ:BGNE) stock and raised the price target to $200 from $180.
At the end of the third quarter of 2023, 13 hedge funds in the database of Insider Monkey held stakes worth $3.07 billion in BeiGene, Ltd. (NASDAQ:BGNE), compared to 17 in the preceding quarter worth $3.06 billion.
Just like Shopify Inc. (NYSE:SHOP), ASML Holding N.V. (NASDAQ:ASML), and Roivant Sciences Ltd. (NASDAQ:ROIV), BeiGene, Ltd. (NASDAQ:BGNE) is one of the high growth international stocks to buy.
11. Genmab A/S (NASDAQ:GMAB)
Number of Hedge Fund Holders: 14
Genmab A/S (NASDAQ:GMAB) makes and sells antibody therapeutics for the treatment of cancer and other diseases. On December 6, investment advisory UBS upgraded Genmab A/S (NASDAQ:GMAB) stock to Buy from Neutral and lowered the price target to DKK 2,800 from DKK 3,000.
At the end of the third quarter of 2023, 14 hedge funds in the database of Insider Monkey held stakes worth $45 million in Genmab A/S (NASDAQ:GMAB), compared to 11 in the preceding quarter worth $27 million.
10. Open Text Corporation (NASDAQ:OTEX)
Number of Hedge Fund Holders: 16
Open Text Corporation (NASDAQ:OTEX) provides information management software and solutions. On December 1, investment advisory Barclays maintained an Equal Weight rating on Open Text Corporation (NASDAQ:OTEX) stock and raised the price target to $44 from $40.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Open Text Corporation (NASDAQ:OTEX) with 11.5 million shares worth more than $404 million.
In its Q2 2023 investor letter, First Pacific Advisors, an asset management firm, highlighted a few stocks and Open Text Corporation (NASDAQ:OTEX) was one of them. Here is what the fund said:
“Open Text Corporation (NASDAQ:OTEX)t was a relatively short-lived holding in comparison to our typical time frame. We were attracted to this Canadian-based provider of enterprise software due to its stable revenue stream. More than 80% of Open Text’s revenue was recurring, which helped deliver attractive mid-30s EBITDA margins. We considered the business to have a sticky customer base that included 97 of the 100 largest companies in the world. Purchased at a low double-digit multiple to after-tax free cash flow, we expected to own the company for years, with capital deployment going towards dividends, buybacks, and small bolt-on acquisitions, as it had in the past. Unfortunately, to our surprise, while we owned the stock, Open Text announced a relatively large acquisition in the form of UK-based Micro Focus. Familiar with the target, we were unenthused about both the asset and increased debt on the balance sheet from funding the purchase, so we chose to exit stage left rather than try to re-write our investment thesis.”
9. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 18
NIO Inc. (NYSE:NIO) designs, develops, manufactures, and sells smart electric vehicles in China. On December 6, investment advisory Bank of America maintained a Buy rating on NIO Inc. (NYSE:NIO) stock and lowered the price target to $11 from $13.
At the end of the third quarter of 2023, 18 hedge funds in the database of Insider Monkey held stakes worth $156 million in NIO Inc. (NYSE:NIO), compared to 19 in the preceding quarter worth $120 million.
8. CyberArk Software Ltd. (NASDAQ:CYBR)
Number of Hedge Fund Holders: 32
CyberArk Software Ltd. (NASDAQ:CYBR) develops, markets, and sales software-based security solutions and services. On December 15, investment advisory Mizuho maintained a Buy rating on CyberArk Software Ltd. (NASDAQ:CYBR) stock and raised the price target to $250 from $195.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm RGM Capital is a leading shareholder in CyberArk Software Ltd. (NASDAQ:CYBR) with 1.1 million shares worth more than $185 million.
7. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 34
Grab Holdings Limited (NASDAQ:GRAB) provides superapps that allows access to mobility, delivery, financial services, and enterprise offerings through its mobile application. On November 6, investment advisory Morgan Stanley maintained an Overweight rating on Grab Holdings Limited (NASDAQ:GRAB) stock with a price target of $5.40.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Tremblant Capital is a leading shareholder in Grab Holdings Limited (NASDAQ:GRAB) with 10.5 million shares worth more than $37 million.
6. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 37
monday.com Ltd (NASDAQ:MNDY) together with its subsidiaries, develops software applications. On December 14, investment advisory JPMorgan maintained an Overweight rating on monday.com Ltd (NASDAQ:MNDY) stock with a price target of $220.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Holocene Advisors is a leading shareholder in monday.com Ltd (NASDAQ:MNDY) with 717,278 shares worth more than $114 million.
In addition to Shopify Inc. (NYSE:SHOP), ASML Holding N.V. (NASDAQ:ASML), and Roivant Sciences Ltd. (NASDAQ:ROIV), monday.com Ltd (NASDAQ:MNDY) is one of the high growth international stocks to buy.
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Disclosure. None. 12 High Growth International Stocks to Buy is originally published on Insider Monkey.