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)
10. Frontline plc (NYSE:FRO)
10-Year Revenue Growth Rate: 25.47%
Number of Hedge Fund Holders: 16
Frontline plc (NYSE:FRO) is a shipping company based in Cyprus that specializes in the transportation of crude oil and refined petroleum products. The company owns and operates a fleet of large tankers including Very Large Crude Carriers (VLCC), Suezmax Tankers, Aframax, and LR2 Tankers. The fleet of the company travels internationally thereby playing a crucial role in maintaining global energy supply.
Despite not achieving the desired earnings levels due to market conditions, Frontline plc (NYSE:FRO) maintains a decent profit margin. During the fiscal third quarter of 2024, the company reported $39,600 per day on our VLCC fleet, $39,900 per day on our Suezmaxes, and $36,000 per day on our LR2/Aframax suite. CEO, Lars Barstad noted that these numbers were below expectation due to the market fluctuations. However, the company was still able to generate decent profits of $60.5 million during the quarter.
Management noted that they are emphasizing maintaining operational efficiency and profitability despite external pressures. The company aims to optimize its capital structure while adapting to changing market dynamics. It is one of the high-growth international stocks to invest in now.
9. Burford Capital Limited (NYSE:BUR)
10-Year Revenue Growth Rate: 33.63%
Number of Hedge Fund Holders: 22
Burford Capital Limited (NYSE:BUR) is a United Kingdom-based financial services company that specializes in providing legal finance to businesses and law firms. The company operates through three main business models including Capital Provision, Asset Management, and other services, which include additional services like litigation insurance.
The company is experiencing a strong performance in fiscal 2024, marked by significant financial achievements and growth in its operations. Burford Capital Limited (NYSE:BUR) generated $556 million in cash receipts year-to-date for fiscal 2024, with $310 million coming in the third quarter alone, setting new records for the company. In addition, the core portfolio’s net realized gains reached $184 million year-to-date, reflecting a 49% increase from the same period in 2023.
Management of Burford Capital Limited (NYSE:BUR) noted that it has seen a substantial increase in new commitments during the third quarter of 2024 compared to the same period last year, showcasing strong demand for its financing services despite a focus on managing an active portfolio. The investment case of the company remains strong as the Global Disputes Forecast 2025 report by Baker McKenzie indicates that 85% of organizations plan to increase their legal spending on disputes in 2025. Moreover, a notable 90% indicated that litigation remains their preferred method for resolving tax disputes, highlighting a reliance on formal legal mechanisms despite potential costs. Here’s what Greenhaven Road Capital stated regarding Burford Capital Limited (NYSE:BUR) in its Q3 2024 investor letter:
“Burford Capital Limited (NYSE:BUR) – We have owned litigation financer Burford for less than two years, but the progress was not long in waiting. Substantial developments in their legal case against Argentina have occurred, with the potential proceeds being multiples of BUR’s current share price. The Argentina case is far from their only valuable asset and Burford also holds another $5B of cases in their portfolio that could be worth substantially more.”
8. RenaissanceRe Holdings Ltd. (NYSE:RNR)
10-Year Revenue Growth Rate: 25.19%
Number of Hedge Fund Holders: 29
RenaissanceRe Holdings Ltd. (NYSE:RNR) is an insurance company that primarily provides reinsurance and insurance services. The company is based in Bermuda and has offices internationally including the United Kingdom, United States, Australia, and Singapore. RenaissanceRe Holdings Ltd. (NYSE:RNR) specializes in providing property and casualty reinsurance services, focusing on matching desirable risks with efficient capital solutions.
The company has seen significant growth in its Property and Specialty business segments, with revenue increases ranging from 35% to 75%. Moreover, the company has also benefited from the high interest rates as it generated increased investment incomes. The combination of elevated interest rates and enhanced asset leverage has allowed investment income to contribute significantly to overall earnings.
During the fiscal third quarter of 2024, RenaissanceRe Holdings Ltd. (NYSE:RNR) generated over $540 million in operating income, which corresponds to a 22% return on equity. Management attributed strong performance to effective performance across underwriting, investments, and capital management. The company reported writing $2.4 billion in gross premiums, a substantial rise from $1.62 billion during the same period in 2023. On January 14, Wells Fargo cut its price target from $301 to $288, however, the firm maintained its Overweight rating on the stock indicating potential upside in the future.
TimesSquare Capital U.S. Focus Growth Strategy stated the following regarding RenaissanceRe Holdings Ltd. (NYSE:RNR) in its Q3 2024 investor letter:
“RenaissanceRe Holdings Ltd. (NYSE:RNR), a provider of reinsurance and insurance services, surged ahead by 22%. Solid second quarter results were generated by favorable reserve releases in the Catastrophe, Casualty, and Specialty segments. There were also lower than anticipated losses in their Total Property business. Net investment income and share buybacks also exceeded projections.”
7. Globant S.A. (NYSE:GLOB)
10-Year Revenue Growth Rate: 28.57%
Number of Hedge Fund Holders: 29
Globant S.A. (NYSE:GLOB) is a technology services company that specializes in creating digital solutions for businesses. It focuses on the ‘Digital Journeys’ of other companies by providing them with mobile apps, and web applications, and integrating advanced technologies like artificial intelligence and big data. Based in Luxembourg, the company operates in multiple countries, with a significant portion of its business coming from North America.
On January 21, Jefferies analyst Surinder Thind increased his price target for Globant S.A. (NYSE:GLOB) from $240 to $250, while maintaining a Buy rating on the stock. Thind noted that the firm’s projects for the Technology and Information Services group remain largely unchanged, although they note that a stronger U.S. dollar may negatively impact revenues.
The company has been doing good mainly due to its AI solutions. During the fiscal third quarter of 2024, it generated $614.67 million in revenue, up 12.72% year-over-year. The growth was driven by its AI solutions as the company has grown its AI-related revenue by more than 1120% during the first nine months of fiscal 2024.
Moreover, Globant S.A. (NYSE:GLOB) is also expanding its reach internationally with significant growth coming from the Middle East and APAC regions. During the quarter management added 331 new customers, which are expected to contribute $1 million annually. It is one of the high-growth international stocks to invest in now.
Polen Global Growth Strategy stated the following regarding GLOBANT S.A. (NYSE:GLOB) in its Q3 2024 investor letter:
“We added to several existing positions during the quarter, including Shopify, GLOBANT S.A. (NYSE:GLOB), and Paycom Software. While we’re cognizant of Globant’s challenging IT Consulting industry backdrop, we think the valuation is attractive relative to its long-term growth potential as the company continues to deliver best-in-class revenue and profit growth, bucking broader industry trends. Finally, we modestly added to our small position in Paycom Software following our recent meeting with the founder/CEO and CFO.”
6. Argenx SE (NASDAQ:ARGX)
10-Year Revenue Growth Rate: 79.79%
Number of Hedge Fund Holders: 43
Founded in 2008, Argenx SE (NASDAQ:ARGX) is a Netherlands-based biopharmaceutical company focused on developing antibody-based therapies for autoimmune diseases and cancer. The company is known for its Vyvgart flagship drug, recognized as the first approved neonatal Fc receptor (FcRn) blocker in the United States, European Union, Japan, and other regions for treating generalized myasthenia gravis (gMG).
Vyvgart got approved in 2021 and has since then significantly exceeded expectations. Analysts expect that it could generate over $5 billion in peak sales, driven by a substantial unmet need in this therapeutic area. During the fiscal third quarter of 2024, Argenx SE (NASDAQ:ARGX) grew its revenue by 74% year-over-year to reach $589 million. Out of this total revenue, Vyvart contributed $573 million from net global sales.
Argenx SE (NASDAQ:ARGX) is advancing several other candidates through its antibody discovery platform, including empasiprubart, which targets rare neurological diseases like multifocal motor neuropathy (MMN). Moreover, management has signed a partnership with Zai Lab to market Vyvgart in China, which adds potential for long-term sales growth. It is one of the high-growth international stocks to invest in now.
5. Ascendis Pharma A/S (NASDAQ:ASND)
10-Year Revenue Growth Rate: 34.65%
Number of Hedge Fund Holders: 43
Ascendis Pharma A/S (NASDAQ:ASND) is a biopharmaceutical company based in Denmark that focuses on developing and manufacturing medications for various health conditions including growth hormone deficiency, Endocrinology, central nervous system disorders, and infectious diseases. The company operates internationally through several subsidiaries located in countries such as Germany and the United States.
The company differentiates based on its proprietary technology platform called TransCon, which improves the efficiency of the drug by controlling how medications are released in the body over time. On January 13 Gavin Clark-Gartner from Evercore ISI maintained a Buy rating on the stock, maintaining a price target of $220. Ascendis Pharma A/S (NASDAQ:ASND), during the third quarter results for fiscal 2024 reported strong demand for its products, particularly SKYTROFA (TransCon hGH), which saw over a 60% increase in volume year-over-year due to its effectiveness and convenience compared to daily growth hormone therapies.
In addition to SKYTROFA, YORVIPATH was also a strong contender as it generated a revenue of €8.5 million during the quarter. Management on December 19 announced the launch of YORVIPATH in the United States as well, where approximately 70,000 to 90,000 adults would benefit from the treatment. It is one of the 12 high-growth international stocks to invest in now.
PGIM Jennison Health Sciences Fund stated the following regarding Argenx SE (NASDAQ:ARGX) in its Q3 2024 investor letter:
“Argenx SE (NASDAQ:ARGX) develops antibody-based medicines for autoimmune diseases and cancer. Its flagship drug is Vyvgart (efgartigimod), a first-in-class anti-FcRn approved in the U.S., E.U., and other key geographies globally for the treatment of myasthenia gravis (MG). The launch has far exceeded expectations, speaking to the unmet need in this category, and the company (and we) now expect MG to be a far bigger opportunity than initially modeled, generating in excess of $5b in peak sales. The recent approval of a subcutaneous formulation of Vyvgart should sustain and accelerate these strong growth trends. Vyvgart is a true “pipeline in a product,” posting very strong Phase III results in chronic inflammatory demyelinating polyradiculoneuropathy (CIDP), which should add another $4b to peak sales. The company’s antibody discovery platform is also advancing several earlier-stage assets, with the first Phase 2 for their next potential “pipeline in a product,” empasiprubart, reading out in 2024. With both an attractive pipeline and commercial opportunity, Argenx’s near term focus has been on the global Vyvgart launch and the potential to expand on both the drug formulation (subQ) and indication sides (CIDP approval and launch in 2024, and several other autoimmune-mediated indications in trials). The company also has a partnership with Zai Lab to market Vyvgart in China, providing upside to long-term peak sales potential. Argenx also has multiple readouts for additional Vyvgart indications in 2024/2025 and relatively lower pipeline readout binary risk at this stage of the development story, given the first major indication of MG is already on the market and the second major indication of CIDP has begun to ramp in utilization. We believe Vyvgart is on track to grow sales from $2B in 2024 to approximately $8B into the early 2030’s on MG and CIDP alone. This attractive sales growth and a lean organization structure should allow the company to achieve above average growth rates for the next several years. Argenx has also recently unveiled additional molecules that we think have significant long-term potential, especially their second program, empasiprubart, which could be another blockbuster pipeline in a product and is already in mid-stage trials for its lead indication, rare neurological disease multifocal motor neuropathy, or MMN.”
4. Wix.com Ltd. (NASDAQ:WIX)
10-Year Revenue Growth Rate: 29.83%
Number of Hedge Fund Holders: 46
Wix.com Ltd. (NASDAQ:WIX) is an Israel-based cloud web development platform, which allows individual and business users to build professional websites and online stores. The company operates on a subscription model with around 222 million users, 85% of which are on annual and multi-year subscriptions. The company has a 102% net revenue retention rate.
On January 13, Elizabeth Porter upgraded Wix.com Ltd. (NASDAQ:WIX) to Overweight from Equal-weight, increasing her price target from $248 to $276. The analyst mentioned that the use of AI-related innovations and a steady growth in the company’s partner segment is generating strong free cash flow for the company. However, the current valuation does not reflect these positive developments.
Moreover, Lakehouse Global Growth Fund in their November 2024 investor letter mentioned that Wix.com Ltd. (NASDAQ:WIX) is focused on innovation with almost 40% of its workforce deployed in R&D. The fund also mentioned that while the significant driver for the company’s growth has been the Do-it-Yourself (DIY) category. Its new product Studio aimed at professional web developers will drive future growth. This new product will compete with WordPress, which holds around 60% market share. Management is already witnessing excellent results from Studio as 75% of bookings from new partners were driven by Studio accounts during the fiscal third quarter of 2024.
Here’s what Lakehouse Global Growth Fund stated regarding Wix.com Ltd. (NASDAQ:WIX) in its November 2024 investor letter:
“At the portfolio level, the biggest contributor to performance during the month was Wix.com Ltd. (NASDAQ:WIX) (+34.6%). This is a new position and, so far, things are playing outwell with the company delivering a series of earnings results ahead of expectations – more on Wix below.
Lastly, we’ll wrap things up with a brief introduction to one of the Fund’s newest positions, Wix.com (“Wix”). Wix is a global leader in website development, providing critical infrastructure that enables over 270 million individuals and businesses to create, manage, and grow their online presence. Since its founding in 2006, Wix has always maintained a relentless focus on innovation, with 40% of its workforce in R&D. It has developed a comprehensive suite of tools beyond basic website building, including e-commerce, payments, and marketing solutions. The company exhibits a sticky subscription-based model, with 85% of users on annual or multi-year plans and an impressive 104% net revenue retention rate.
Historically, Wix’s primary focus has been on self-creators (think individuals and SMBs) who are looking to build and manage a website themselves. Whilst this DIY category has been a significant driver of the company’s growth to date, what got us particularly excited about Wix was the success of their new product aimed at professional web developers called Studio. This “do-it-for-me” (DIFM) market has long been dominated by WordPress which holds roughly 60% market share, however, Wix has recently started making inroads. Wix Studio simplifies the process for partners (agencies and freelancers) to build their clients websites on the Wix platform and the use of revenue sharing arrangements effectively transforms these partners into distributors for Wix…” (Click here to read the full text)
3. CyberArk Software Ltd. (NASDAQ:CYBR)
10-Year Revenue Growth Rate: 26.49%
Number of Hedge Fund Holders: 51
CyberArk Software Ltd. (NASDAQ:CYBR) is an Israel-based company that focuses on IT security solutions. Its software helps organizations defend against both external and internal cyber threats. It enables the detection and neutralization of attacks aimed at these privileged accounts through a range of products including Enterprise Password Vault, Privileged Session Manager, and Privileged Threat Analytics.
On January 21, analysts at Scotiabank raised their price target on the stock from $340 to $400, while maintaining their Outperform rating on the stock. The company reported strong financial results for the fiscal third quarter of 2024, driven by its effective identity security solutions that cater to both human and machine identities. Its Annual Recurring Revenue reached $735 million indicating a 46% increase year-over-year. Management of CyberArk Software Ltd. (NASDAQ:CYBR) has been focused on integrating machine learning and artificial intelligence technologies to improve their software detection and response time. To achieve this integration, the company also acquired Venafi in October 2024. The acquisition has enhanced CyberArk’s capabilities in machine identity management and expanded its addressable market significantly. It is one of the high-growth international stocks to invest in now.
Next Century Growth Small Cap Strategy stated the following regarding CyberArk Software Ltd. (NASDAQ:CYBR) in its first quarter 2024 investor letter:
“CyberArk Software Ltd. (NASDAQ:CYBR) is a leading identity security platform which helps companies protect against cybersecurity attacks. CYBR specializes in privileged access management (PAM) and has a full suite of products for identity security. As cyber attack sophistication increases, companies of all sizes need to upgrade from legacy solutions such as SSO (single sign on) and MFA (multi-factor authentication), which is leading to a strong demand environment for CYBR’s solutions. Given this end market backdrop, the company is growing revenue >20% and is delivering solid margin expansion.”
2. JD.com, Inc. (NASDAQ:JD)
10-Year Revenue Growth Rate: 27.25%
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce platform, which offers a wide range of products including home appliances, electronics, and other general products. Due to its robust supply chain networks, the company has established itself as a key player in the international retail and logistics industry.
On January 22, Joyce Ju, an analyst at Bank of America Securities, reiterated a Buy rating on the stock, keeping the price target at $48. Ju’s analysis of JD.com, Inc. (NASDAQ:JD) is based on expectations for a strong performance in the fourth quarter of 2024, driven by government subsidies and successful promotional activities. Analysts expect the company to achieve a 10.1% year-over-year revenue growth with an 18% increase in profit margins.
The company reported strong financial performance during the third quarter of fiscal 2024. Growth in general merchandise and a turnaround in the electronics and home appliances categories drove revenue to RMB 260 billion, indicating a 5% increase year-over-year. Moreover, gross profits also improved 16% year-on-year with ongoing cost efficiency efforts in logistics contributing heavily. It is one of the high-growth international stocks to invest in now.
Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
1. Alibaba Group Holding Limited (NYSE:BABA)
10-Year Revenue Growth Rate: 31.26%
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is a major Chinese multinational company that focuses on various technology and e-commerce services. Its key business segments range from e-commerce platforms to logistics services, cloud computing, local consumer services, and more.
Lately, the company has been focused on user-focused strategy and advancements in artificial intelligence. Its focus on user engagement resulted in Taobao and Tmall witnessing a significant increase in monthly active users during the fiscal second quarter of 2025. This led to an increase in Gross Merchandise Value (GMV) on these platforms. Moreover, The number of 88VIP members, a loyalty program for high-spending customers, grew to 46 million, indicating strong customer retention and engagement. Alibaba Group Holding Limited (NYSE:BABA) generated RMB236,503 million (US$33,701 million) in revenue during the quarter, indicating an increase of 5% year-over-year.
Analysts expect the company to continue posting gains. Joyce Ju, analyst at Bank of America Securities raised the price target for BABA from $112 to $117, while keeping a Buy rating on the stock. The firm believes that the company will report 9% year-over-year during the fiscal third quarter of 2025, surpassing Street’s expectation by 2%. Alibaba Group Holding Limited (NYSE:BABA) ranks as the top high-growth international stock to invest in now.
Conventum – Alluvium Global Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its Q3 2024 investor letter:
“On 24 September the People’s Bank of China unveiled a massive three part stimulus package involving: (1) slashing the amount of cash banks need to hold in reserve and lowering the main policy interest rate; (2) cutting mortgage rates on existing home loans by 0.5% and reducing down payment requirements for second homes from 25% to 15%; and (3) supporting equity markets by a USD 114b lending pool to encourage companies to buy back shares and non-bank financial institutions to buy local equities (which may be expanded by the same amount two more times)5 . We are flabbergasted. But we shouldn’t be. After all, these types of arrangements have been all too common over the last 15 years. The local equity markets responded with gusto, and for the last week of the quarter the CSI 300 Index (Shanghai and Shenzen listed companies) was up 25.1%. Alibaba Group Holding Limited (NYSE:BABA) was not lost in all this, and returned 26.8% over that one week period. But Alibaba had already performed well so during the whole September quarter it was up a staggering 56.0%. As a result, Alibaba is no longer the cheap stock it once was. It now trades at a premium to our valuation – a valuation which admittedly had been progressively reduced over our holding period as a result of deteriorating business fundamentals. As a result of Alibaba’s significant outperformance, by the end of the quarter it had reached 3.7% of the Fund. We are weighing up our options here, considering the relative risk.”
While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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