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.”
An investor in a suit representing the company, seated in front of a long table of global leaders discussing the company’s investments.
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 24th: 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 24th: 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.
5. Caterpillar Inc. (NYSE:CAT)
Forward P/E ratio as of February 24th: 14.81x
Number of Hedge Fund Holders: 62
Caterpillar Inc. (NYSE:CAT) is a global leader in construction and mining equipment, engines, and industrial power systems. Its heavy machinery is widely used across infrastructure, energy, and resource industries, benefiting from sustained global investment in large-scale projects. Beyond equipment sales, CAT generates strong recurring revenue through parts, services, and digital solutions that enhance fleet efficiency. As the industry shifts toward automation and sustainability, the company is investing in electrified machinery, autonomous technology, and alternative fuels to strengthen its position and adapt to the evolving demands of the heavy equipment market.
Caterpillar Inc. (NYSE:CAT) has demonstrated remarkable growth since 2017, with earnings power tripling and sales increasing by 50%. The company’s success has been driven by its strategy for profitable growth, focusing on operational excellence, expanded services, and sustainability. A key component of their success has been the Operating and Execution model, which enables a more granular understanding of financial performance across products. The company has significantly improved its services business, targeting $28 billion in revenue by 2026, with current progress at $23 billion as of 2023.
Caterpillar Inc. (NYSE:CAT) has demonstrated strong cash generation capabilities, consistently producing $5-10 billion in free cash flow since 2017, except during the 2020 pandemic. The company is experiencing significant growth in the Energy & Transportation segment, particularly driven by data center demand and distributed power generation opportunities. In the mining sector, CAT has made progress in autonomous solutions, making it economically viable for smaller fleets of 10-12 trucks compared to the previous requirement of 70+ trucks. The company maintains a strong balance sheet and has demonstrated resilience during market downturns while continuing to invest in growth opportunities across its business segments. Looking forward, management sees significant organic growth opportunities, particularly in services, distributed generation, data centers, and mining sector growth driven by electrification trends.
4. Dell Technologies Inc. (NYSE:DELL)
Forward P/E ratio as of February 24th: 12.38x
Number of Hedge Fund Holders: 63
Dell Technologies Inc. (NYSE:DELL) is a major player in the global technology industry, offering a broad range of hardware, software, and IT services. Best known for its PCs, laptops, and enterprise servers, the company also has a strong presence in cloud infrastructure, data storage, and cybersecurity solutions. With businesses increasingly prioritizing digital transformation, DELL continues to expand its capabilities in AI-driven computing, hybrid cloud environments, and edge computing. While the PC market remains cyclical, the company’s focus on enterprise IT and subscription-based services provides a more stable revenue stream, positioning it for long-term growth in an evolving tech landscape. DELL is one of the cheap global stocks to invest in.
Dell Technologies Inc. (NYSE:DELL) demonstrated strong performance in AI-optimized servers with orders up 11% sequentially in the latest Q3. The company has accumulated orders of $11.5 billion and shipped $8.5 billion over the last four quarters, maintaining a robust backlog of $4.5 billion. The pipeline for AI servers grew 50% sequentially and represents several multiples of the current backlog, with particularly strong growth in enterprise opportunities at 55% sequential growth and 2,000 unique buyers. DELL’s competitive advantage stems from its comprehensive portfolio across server, networking, and storage solutions, along with innovative products. The ISG business demonstrated remarkable growth of 34% with an operating income of 13.3%, delivering $1.5 billion in operating income dollars, growing faster than revenue at 41%.
Dell Technologies Inc. (NYSE:DELL) is well-positioned in traditional servers with six consecutive quarters of sequential growth and four consecutive quarters of YoY growth. In storage, the company expects to grow at a premium to market and gain share, supported by strong performance in PowerStore with double-digit growth and leadership in the PowerProtect Data Domain with a 60-plus percent market share. All in all, the company is showing strong momentum at execution while trading at a cheap 12.38x forward P/E.
3. Micron Technology Inc. (NASDAQ:MU)
Forward P/E ratio as of February 24th: 8.72x
Number of Hedge Fund Holders: 94
Micron Technology Inc. (NASDAQ:MU) is a key player in the semiconductor industry, specializing in memory and storage solutions that power everything from data centers to consumer electronics. As one of the world’s largest suppliers of DRAM and NAND flash memory, MU benefits from growing demand for high-performance computing, AI, and cloud infrastructure. The company operates in a highly cyclical market, where pricing dynamics and supply chain shifts can impact margins. The US-based company ranked 7th on our recent list of 10 Hot AI Stocks to Buy Now.
Micron Technology Inc. (NASDAQ:MU) issued optimistic guidance for the following months as it expects revenue growth in the fiscal 3Q, though gross margins are projected to be lower by a few hundred basis points sequentially due to higher consumer-oriented mix and weaker NAND conditions. The company anticipates improvements in client and smartphone inventory levels, expecting them to reach healthy levels by spring, along with continued content growth in PC and smartphone segments through calendar 2025. In the High Bandwidth Memory segment, MU is progressing well with its 12-high stack product, which offers 20% less power than competitors’ 8-high stack while providing 50% more capacity. The company maintains a strong position in data center demand for DRAM, though its data center eSSD segment is experiencing a temporary digestion period.
Looking ahead, management expects industry conditions to support improved margins beyond fiscal Q3, with positive indicators including stronger bit shipments and improving inventory levels. Micron Technology Inc. (NASDAQ:MU) is seeing a significant content uplift in AI-related devices, with smartphone content increasing by over 50% for AI-related devices and PC refresh cycles showing 16 gigabyte minimums. In the NAND market, while current conditions remain challenging, MU anticipates better market conditions in the second half of the calendar year, supported by improving inventory levels and industry supply responses. At the same time, MU trades at a cheap 8.72x forward P/E, which is near the bottom of the last twelve months’ range. It is among the best cheap global stocks to invest in.
2. Johnson & Johnson (NYSE:JNJ)
Forward P/E ratio as of February 24th: 14.81x
Number of Hedge Fund Holders: 98
Johnson & Johnson (NYSE:JNJ) is a global healthcare giant with a diversified portfolio spanning pharmaceuticals, medical devices, and consumer health products. Known for its strong brand presence and research-driven approach, JNJ has built a reputation for innovation in areas like immunology, oncology, and surgical technology. The company recently restructured by spinning off its consumer health division, Kenvue, to sharpen its focus on higher-margin pharmaceutical and medtech businesses. With a robust pipeline of new therapies and a defensive business model, JNJ remains a key player in the healthcare sector, benefiting from stable demand and long-term demographic trends. It is one of the best cheap global stocks to monitor.
Johnson & Johnson (NYSE:JNJ) maintains confidence in achieving 3% growth in 2025 and 5-7% compound average growth from 2025 to 2030, which is above the historical average. The company’s success is built on two foundational elements: a clear purpose through its credo and a broadly diversified healthcare model. The acquisition of Intra-Cellular Therapies, announced in January, is expected to lift sales growth through the rest of the decade, with CAPLYTA projected to become a $5 billion asset. In the pharmaceutical segment, management expects to have 10 assets with peak year sales exceeding $5 billion by decade’s end, with 70% of pipeline assets already in Phase III. The MedTech business is positioned for growth, with 50% of sales now in markets growing more than 5%, and by 2027, one-third of sales are expected to come from new products.
Johnson & Johnson (NYSE:JNJ)’s multiple myeloma franchise is anticipated to become a $25 billion franchise by the end of the decade, with approximately 50% share of Johnson & Johnson regimens. The company maintains financial strength to pursue deals while addressing other capital allocation priorities like dividends, though larger deals are considered outliers with the majority of value creation coming through smaller, tuck-in acquisitions. Despite the optimistic long-term outlook and guidance, JNJ still trades at a cheap 14.81x forward P/E.
1. Alibaba Group Holding Limited (NYSE:BABA)
Forward P/E ratio as of February 24th: 13.13x
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is China’s leading e-commerce and cloud computing powerhouse, operating a vast digital ecosystem that spans online retail, logistics, fintech, and enterprise services. Its core e-commerce platforms, Taobao and Tmall, dominate China’s online shopping landscape, while Alibaba Cloud is a key player in Asia’s cloud infrastructure market. The company has faced regulatory pressures and shifting macroeconomic conditions in recent years, prompting strategic restructuring to enhance agility and unlock shareholder value.
In the latest 3Q 2025, Alibaba Group Holding Limited (NYSE:BABA) demonstrated accelerating growth momentum in its core businesses after a year of transformation, with largely completed divestments of offline assets. The company’s cloud business pursued an integrated AI plus cloud strategy, with AI-related product revenue maintaining triple-digit YoY growth for the sixth consecutive quarter. In e-commerce, Taobao and Tmall showed strong growth in new consumers and orders, with CMR growing 9% year-over-year and 88 VIP members reaching 49 million. The international e-commerce business maintained strong growth with improved operating efficiency, with AIDC expected to achieve its first quarter of profitability in the next fiscal year.
Looking ahead, management plans significant investments in three key areas over the next three years: infrastructure for AI and cloud computing, AI foundation models and AI native applications, and transforming existing businesses with AI. Alibaba Group Holding Limited (NYSE:BABA)’s planned investment in cloud and AI infrastructure over the next 3 years is set to exceed what they have spent over the past decade. Financially, the company reported total consolidated revenue of RMB 280.2 billion, an increase of 8%, with consolidated adjusted EBITDA increasing 4% to RMB 54.9 billion. The company maintains a strong net cash position of RMB 378.5 billion ($51.9 billion), providing sufficient resources for its planned AI investments. At the same time, despite the accelerating business outlook, BABA trades at a cheap 13.13x forward P/E, which makes it one of the best cheap global stocks to invest in.
Overall Alibaba Group Holding Limited (NYSE:BABA) ranks first on our list of the 7 cheap global stocks to buy right now. While we acknowledge the potential of BABA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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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