In this article, we will look at the 12 High Growth International Stocks to Invest in Now.
What To Expect From The Stock Market in 2025?
On January 15, Jurrien Timmer, Director of Global Macro at Fidelity Management & Research Company shared his outlook for 2025. He believes that the market has lost some of its momentum as the prospects of more rate cuts in 2025 have gone slimmer. One of the reasons for less likely rate cuts came a few weeks ago with a stronger-than-expected job market report, which sparked a market dip. Moreover, on the same day, long-term interest rates went higher. The 10-year treasury yield climbed closer to the 5% mark which has haunted stocks in the past.
However, Timmer believes the market is still in a bull phase, primarily driven by rising earnings, which he expects will continue to support market growth. This optimism is grounded in the historical performance of bull markets, where earnings often play a crucial role in sustaining upward momentum. He pointed out that as bull markets mature, they typically experience greater volatility. This means that even minor disruptions can lead to significant market fluctuations. High price-to-earnings (P/E) ratios contribute to this sensitivity, as elevated valuations can make the market more susceptible to corrections. Timmer also highlighted his concerns over interest rates, specifically, the Fed’s ability to cut rates, which are likely to persist. This “interest-rate angst” could continue influencing market behavior throughout the year, as investors will continue to grapple with how rate changes can affect stock valuations and overall economic conditions.
Moreover, Timmer also discussed the shifting dynamics in the stock market, particularly focusing on the transition from a narrow leadership group to a broader market participation. He noted that in the latter half of 2024, there was a notable shift in market leadership from the “Magnificent 7”, to a wider array of stocks. This broadening indicates that more sectors and companies are contributing to market gains, which is generally seen as a positive sign for overall market health. However, since mid-December, following the Fed’s reduced expectations for interest rate cuts, the market has lost momentum, as only 24% of stocks were trading above their 50-day moving average, and just 29% of S&P 500 stocks were outperforming the index. This indicates a narrowing participation in market gains, which is concerning for investors who prefer broad-based growth.
While talking about large-cap stock performance, Timmer raises the question of whether this trend of narrow leadership will persist. He suggested that trends continue to move in the same direction until a significant change occurs. Given that large-cap growth stocks have dominated for years, it is reasonable to assume that they may continue to lead. However, he also cautioned the investors that as per the concept of mean reversion, asset prices will eventually return to their historical averages and when this happens, it could lead to sharp corrections in stock prices. Timmer believes that while 2024 was a “Goldilocks year,” for earnings and valuations, this year can be a tussle between higher earnings and rising long-term interest rates, thereby resulting in a volatile market.
With that let’s take a look at the 12 high-growth international stocks to invest in now.
A fund manager studying the performance of a WisdomTree International Equity Index.
Our Methodology
To curate the list of 12 high-growth international stocks to invest in now, we used the Finviz stock screener and Seeking Alpha. We used the screener as a starting point of our research to get (Ex-USA) stocks that have grown their revenue by more than 15% during the last 5 years. Next, we checked these stocks for 10-year revenue growth rates from Seeking Alpha and selected only those stocks that had grown by more than 25% during the last decade. Lastly, we ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s third-quarter database.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 High Growth International Stocks to Invest in Now
12. Genmab A/S (NASDAQ:GMAB)
10-Year Revenue Growth Rate: 37.02%
Number of Hedge Fund Holders: 14
Genmab A/S (NASDAQ:GMAB) is a biotechnology company based in Denmark that focuses on developing antibody therapeutics for cancer treatment. The company has developed several important drugs including DARZALEX, Kesimpta, TEPEZZA, and FASPRO. The use of advanced technology sets the company apart from its competitors. For instance, Genmab A/S (NASDAQ:GMAB) employs DuoBody technology, which allows the creation of bispecific antibodies that can target two different antigens simultaneously. Moreover, its HexaBody technology enhances the effectiveness of antibodies.
Genmab A/S (NASDAQ:GMAB) currently has a portfolio of eight products in the market which have either been developed by the company or using its technology. EPKINLY (epcoritamab) is a major focus for the company. As of early 2024, the drug was highlighted as a key asset, and by late 2024, it had received significant attention due to its performance in treating various B-cell malignancies, including diffuse large B-cell lymphoma and follicular lymphoma.
During the fiscal third quarter of 2024, management pointed out that the drug has gained significant traction in Japan where it is the only approved bispecific antibody targeting CD3 and CD20. This unique position has allowed EPKINLY to outperform competitors since its launch. It is one of the high-growth international stocks to invest in now.
11. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
10-Year Revenue Growth Rate: 26.70%
Number of Hedge Fund Holders: 15
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a Canadian company that specializes in owning and managing essential infrastructural assets. The company operates in four main areas including utilities, transport, midstream, and data. The diverse portfolio of services and the international nature of its operations make its earnings recession-proof.
The company reported a strong fiscal third quarter of 2024, driven by strong performance in three of its four operating areas. Brookfield Infrastructure Partners L.P. (NYSE:BIP) generated $599 million in Funds from Operations (FFO) indicating a 7% increase year-over-year. Management noted that its transport segment was the strongest contributor with FFO increasing 50% year-over-year to reach $308 million.
The company is focusing on its $8 billion backlog of organic growth projects, which are expected to benefit from trends like artificial intelligence and increased energy demand. Additionally, Brookfield has identified over $4 billion in potential projects that are still in the planning stages. This indicates a robust pipeline of future investments that could further drive growth and expansion within their infrastructure portfolio. Considering the prospects of Brookfield Infrastructure Partners L.P. (NYSE:BIP), Jonathan Reeder analyst at Wells Fargo reiterated a Buy rating on the stock maintaining his price target of $38. It is one of the high-growth international stocks to invest in now.
Emeth Value Capital made the following comment about Brookfield Infrastructure Partners L.P. (NYSE:BIP) in its Q2 2023 investor letter:
“Brookfield Corporation has $7.6 billion invested through Brookfield Infrastructure Partners L.P. (NYSE:BIP), a publicly traded permanent capital vehicle that is one of the largest owners and operators of critical global infrastructure. The entity was demerged from Brookfield in 2008 and was seeded with interests in 1.2 million acres of timberlands in Canada and the United States and interests in 10,900 kilometers of electricity transmission assets in Chile, Brazil, and Canada. The oldest of these assets, Great Lakes Power Transmission Co., an electricity transmission system based in Ontario, was acquired by Brascan in 1982. Brookfield Infrastructure Partners has significantly enhanced the quality, scale, and diversity of its portfolio over the last fifteen years. The timber assets were fully divested, and rail networks, toll roads, diversified terminals, last-mile utilities, midstream energy, and digital infrastructure were added. The partnership now owns many of the world’s premier infrastructure assets, several of which were acquired for value during a dislocation. For example, in 2020 Brookfield Infrastructure Partners acquired a six percent ownership interest in Sabine Pass, the largest LNG export facility in the United States. The transaction occurred amid unprecedented lows in natural gas pricing and an oversupplied LNG market. The partnership paid $1 billion for its interest, which was funded with forty percent equity and sixty percent low cost debt. In 2022, Sabine Pass generated $2.5 billion in earnings, or approximately $120 million in earnings against Brookfield Infrastructure Partners’ $400 million equity investment, equating to a thirty percent cash on cash yield…” (Click here to read the full text)
