In this article, we will take a detailed look at 7 Cheap Global Stocks to Buy Right Now.

The geopolitical landscape has drastically changed since the beginning of the decade, with the COVID-19 pandemic followed by worldwide spikes in inflation leading to completely different economic tendencies if compared to the previous decade. The conflict in Ukraine brought even more geopolitical turmoil, with many analysts believing that this war represents the end of several political and economic alliances, notably between Europe and Russia on the one hand, and between the USA and China on the other hand. The first so-called alliance of the past led to strong economic growth in both the EU and Russia, as the former used cheap energy and commodities from Russia to fuel its industrial sector (particularly that of Germany), while Russia itself had the freedom to export its capital and source the technology and talent it needed for development. The second so-called alliance, between the USA and China, fueled unprecedented growth in China, in a journey to secure the American market and industry with cheap electronics, components, consumer products, and everything the country needed to grow its technological leadership.

Also read: 10 Cheap New Stocks To Buy Right Now

As the Ukraine conflict unfolded in Eastern Europe, some tendencies from the times of the Cold War proliferated again, with the East and the West isolating each other, as the USA and Europe aligned to support Ukraine, while China had the back of Russia. The aforementioned “old” alliances were shattered, and each region started to face new problems – the EU’s energy security faced unprecedented risks, with energy prices skyrocketing across central and eastern Europe, leading to a slowdown in economic growth and tremendous pressure on the regular consumer. The US and China escalated the trade wars that had their roots in the previous decade – in an attempt to protect its technological leadership, particularly in the AI field, the US imposed restrictions to export semiconductor equipment used in the production of state-of-the-art chips, such as powerful GPUs to train AI models. China imposed some retaliatory restrictions regarding several strategic commodities sourced by the US. Even though the trade wars are still not fully enforced by both parties, the tensions persist and have deep implications for the financial markets and the global economy.

As geographic markets became more disconnected, the stock markets in the USA, Europe, and APAC had quite different performances, with the former leading by a wide margin in 2023-2024. For reference, the 5-year performance of the German stock market lagged that of the US by 57%, China lagged the US by 94%, and Japan lagged the US by 58%. In light of the proliferating geopolitical challenges, which still persist as the new Trump 2.0 administration threatens tariffs on its supposed allies as well as China again, we believe that global companies that are diversified across geographies will be the most favored in the years to come, due to stronger potential to diversify idiosyncratic risk. Furthermore, as the US stock market is currently near all-time highs after a stellar 2023-2024 period, cheap companies trading under 15.0x forward P/E might be the only viable option to buy in the current expensive market. Successful investors like Warren Buffet acknowledged that an overstretched valuation could hinder the subsequent performance of a stock. Here’s precisely what he said during his 1998 letter to shareholders:

“For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”

Our Methodology

We used a Finviz screener to filter the largest stocks trading at under 15x forward P/E and analyzed the companies’ filings in order to identify 7 promising global companies that generated at least 40% of revenue in the last financial year from outside the US. For each company, we also include the number of hedge funds that own the company as of Q4 2024 and rank them in ascending order.

Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

7. Toyota Motor Corporation (NYSE:TM)

Forward P/E ratio as of February 24^th: 8.25x

Number of Hedge Fund Holders: 13

Toyota Motor Corporation (NYSE:TM) is the world’s largest automaker by volume, known for its strong manufacturing efficiency, reliable vehicles, and early leadership in hybrid technology. The company’s Toyota and Lexus brands dominate key global markets, with a product lineup spanning economy cars, luxury vehicles, trucks, and electrified models. While Toyota has been cautious in its approach to fully electric vehicles, it continues to invest in hybrid, hydrogen, and next-gen battery technologies to stay competitive in the evolving auto industry.

TM’s consolidated vehicle sales were 4.556 million units, representing 96% of the previous fiscal year, with electrified vehicles increasing to 44.4% of total sales. Despite production challenges, Toyota Motor Corporation (NYSE:TM) achieved solid consolidated financial results with sales revenue of JPY23.2824 trillion, operating income of JPY2.4642 trillion, and net income of JPY1.9071 trillion. Looking ahead, Toyota aims to recover production volume in the second half of FY2025, targeting a return to an annual global production pace of 10 million units. The company is strengthening its foundation through increased investment in human resources, growth areas, and maintaining earnings power through measures such as controlling incentives and increasing value chain earnings.

During a recent special call with management, Toyota Motor Corporation (NYSE:TM)’s CFO discussed how the company is navigating the complex macroeconomic and geopolitical background. TM is establishing a wholly-owned company in Shanghai for developing and producing Lexus BEVs and batteries, with a planned production capacity of 100,000 units and 1,000 new jobs after 2027. In the United States, the company will commence battery shipments in April, representing a $14 billion investment and creating 5,000 jobs. The company is actively investing in growth areas while focusing on creating an environment where automotive industry workers can be motivated. It appears that management is making the right investments for the future, at a time when the company’s share trades at a cheap 8.25x forward P/E ratio.

6. Cummins Inc. (NYSE:CMI)

Forward P/E ratio as of February 24^th: 13.46x

Number of Hedge Fund Holders: 53

Cummins Inc. (NYSE:CMI) is a global leader in power solutions, specializing in diesel and natural gas engines, power generation systems, and electrified powertrains. The company serves a diverse range of industries, including transportation, construction, agriculture, and energy, with a strong reputation for durability and performance. As the push for cleaner energy accelerates, CMI is investing heavily in hydrogen fuel cells, battery-electric technology, and carbon reduction initiatives to stay ahead of regulatory and market shifts. It is among the cheap global stocks to buy now.

Cummins Inc. (NYSE:CMI) remains committed to navigating the energy transition while focusing on both traditional and new power solutions. The company is experiencing strong profitability improvements with cost efficiencies and is approaching its 2030 targets ahead of schedule. In the core business, CMI is launching three new engine platforms for 2027 regulations, representing the highest R&D and capital expenditure in company history. The Power Systems segment shows particular strength, especially in data centers, with the company expanding capacity across multiple engine sizes globally. While the pace of zero-emission adoption has been slower than initially projected, CMI maintains its strategic commitment to Accelera while implementing cost-reduction measures and consolidating operations. Cummins Inc. (NYSE:CMI)’s content strategy continues to progress with the addition of components and systems across vehicles, enhancing optimization capabilities and driving growth. Regarding capital allocation, CMI is well-positioned with its current portfolio and debt position, focusing on returning cash to shareholders while remaining open to strategic bolt-on acquisitions. At the same time, CMI is trading at 13.46x forward P/E, near the lower end of the last twelve months range.