In this article, we discuss the 5 best global stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Global Stocks To Buy Now.
5. Nokia Corporation (NYSE:NOK)
Number of Hedge Fund Holders: 22
Recently, 5G solutions provider Nokia Corporation (NYSE:NOK) signed a five-year agreement with Elisa Estonia, a Finnish telecom company, for a national 5G RAN rollout and the replacement of the existing 4G infrastructure. Nokia Corporation’s (NYSE:NOK) 5G project is scheduled to begin in early 2022, following the completion of Estonia’s spectrum auction.
Before the company became one of the world’s leading 5G providers, Nokia Corporation (NYSE:NOK) was widely known as a mobile phone manufacturer. The Finnish tech company still produces phones along with laptops, smart TVs, streaming devices, and smart lighting.
The company recently reported third-quarter earnings of EUR 5.39 billion, up 2% from EUR 5.29 billion a year ago. Furthermore, Nokia Corporation (NYSE:NOK) saw a 6% year-over-year increase in revenue in its network infrastructure segment and a 12% year-over-year increase in sales in its cloud and network services.
Morgan Stanley analyst Dominik Olszewski initiated an Overweight rating on Nokia Corporation (NYSE:NOK) shares and set a price target of $7.50 on December 20. Olszewski mentioned that Nokia Corporation (NYSE:NOK) is working to address its product cost-competitiveness issues.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Nokia Corporation (NYSE:NOK) with 22.6 million shares worth more than $123 million. Overall, 22 hedge funds in the database of Insider Monkey held stakes worth $388 million in Nokia Corporation (NYSE:NOK) at the end of Q3 2021, compared to 26 in the previous quarter worth $494 million.
4. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Number of Hedge Fund Holders: 23
Another foreign investment option that market analysts are watching is Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), the largest oil and gas company in Latin America. The upstream and downstream oil and gas company based in Rio de Janeiro has benefited from oil price hikes in the previous year.
Goldman Sachs analyst Bruno Amorim is optimistic about Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), besides the existing risks of a change in the Brazilian state-owned oil company’s fuel pricing policy. On December 15, Amorim upgraded Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) to Buy from Neutral rating and set a price target of $14.20.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is also a good investment option for income investors. The oil giant pays its shareholders an annual dividend of $2.09 per share or a dividend yield of 19.01%.
GQG Partners, the largest shareholder of Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), increased its position in Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) by 25% in Q3, holding almost 173 million shares worth $1.8 billion. Overall, 23 hedge funds were bullish on the stock as of the end of September 2021.
3. Yandex N.V. (NASDAQ:YNDX)
Number of Hedge Fund Holders: 27
Yandex N.V. (NASDAQ:YNDX) is a Russian internet search engine company that offers machine learning-backed products and services. The company offers geolocation services, cloud-based storage, video conferencing service, market analytics tools, and an e-commerce site. Yandex N.V. (NASDAQ:YNDX) also runs a ride-sharing service and a real estate classifieds platform.
The Russian e-commerce company announced in November that it would invest “tens of millions of dollars” in improving its fashion segment by 2022. Yandex N.V. (NASDAQ:YNDX) intends to increase the fashion segment’s share of total goods turnover across all Yandex e-commerce services to around 20%.
Yandex N.V. (NASDAQ:YNDX) was recently upgraded by HSBC analyst Raj Sinha to Buy from Hold. Despite the fact that the stock dropped 28% in November, Sinha believes that this gives investors a buying opportunity. The stock’s price target was likewise raised by the HSBC analyst to $77 from $76 on December 16.
At the end of the third quarter of 2021, 27 hedge funds in Insider Monkey’s database of 867 funds held stakes in Yandex N.V. (NASDAQ:YNDX) compared to 31 funds in the previous quarter. Orbis Investment Management is Yandex N.V.’s (NASDAQ:YNDX) most significant stakeholder, with 4.9 million shares worth $397 million.
2. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 44
Dubbed as “China’s Google”, Baidu, Inc. (NASDAQ:BIDU) provides internet search engine services. As of September 2021, the Chinese internet giant’s Baidu App grew its monthly active users by 12% year over year to 607 million. Baidu, Inc. (NASDAQ:BIDU) is also known for building smart-city infrastructure and transportation systems using its AI cloud services.
In addition, Baidu, Inc. (NASDAQ:BIDU) is also one of the best diversified global stocks as the company continues to innovate its autonomous driving products and services, Apollo. In its third-quarter earnings report, the company announced that Apollo now has 31 partnerships for self-driving and infotainment solutions.
On November 18, Benchmark analyst Fawne Jiang maintained a Buy rating on Baidu, Inc. (NASDAQ:BIDU) with a price target of $330. At the end of September, 44 funds out of the 867 tracked by Insider Monkey had stakes in Baidu, Inc. (NASDAQ:BIDU), compared to 59 in the previous quarter.
In its Q3 2021 investor letter, Ariel Investments mentioned Baidu, Inc. (NASDAQ:BIDU) and discussed its stance on the firm. Here is what the fund said:
“When we have such a high level of conviction for a company it is not uncommon for us to own it in size across our portfolios. Such is the case with technology giant Baidu, whose leading search engine has been dubbed the “Google of China.” This quarter shares sold off in sympathy with the Chinese internet sector as investors were rattled by the government’s sweeping regulatory crackdown intended to promote “common prosperity” by easing wealth inequality. While we recognize the greater political risk of investing in emerging markets such as China and incorporate an appropriately higher risk premium in the discount rate in our valuation models, we believe Baidu’s business strategy is aligned with national policies and priorities and is therefore not adversely impacted unlike some other players in the internet sector who are in the eye of the storm.
Indeed, the Chinese government recognizes Baidu’s large, upfront investments in many next-generation artificial intelligence (AI) technologies and hails it as a national champion. For example, the company’s Advanced Driving Support System (ADAS), Apollo, has twice as much data on miles driven than any other initiative in the world, giving Baidu (and China) a large lead in the global AI arms race. In addition, Baidu’s cloud offering touts highly differentiated Platform as a Service (PaaS) features and capabilities for a demanding enterprise customer base. While these initiatives are a temporary drag on margins and require long-term execution, their success will bolster China’s “dual circulation” strategy aimed at spurring domestic demand, innovation, and self-reliance.” (Click here to see the full text)
1. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 117
Sea Limited (NYSE:SE) is an internet giant that offers e-commerce, digital entertainment, and digital financial services globally. Shopee, Sea Limited’s (NYSE:SE) e-commerce division, covers nearly 57% of the Southeast Asian online shopping market and also operates in Brazil and Mexico. Shopee was the highest-ranked app on Google Play in the Shopping category by total time spent in-app, according to App Annie.
In the third quarter of 2021, Sea Limited (NYSE:SE) saw a year-over-year revenue increase of 121.8% to $2.7 billion. The Singapore-based internet company increased its full-year e-commerce revenue guidance for 2021 to $5 billion to $5.2 billion, up from $4.7 billion to $4.9 billion previously. Meanwhile, Sea Limited (NYSE:SE) retained its Garena fiscal 2021 guidance of $4.5 billion to $4.7 billion.
With internet penetration in Southeast Asia at 75% in 2021, analysts see that there is much room for Sea Limited (NYSE:SE) to grow in the market. CLSA analyst Neel Sinha raised his rating on Sea Limited (NYSE:SE) from Outperform to Buy in November after the internet company announced a solid Q3 earnings result. Sinha increased his price target for the stock to $455 from $352.
Moreover, 117 hedge funds in Insider Monkey’s database reported owning stakes in Sea Limited (NYSE:SE) as of Q3 2021, up from 104 in the previous quarter. The total value of these stakes is over $14 billion.
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