This article by Hamna Asim with my picture is in Yahoo
In this article, we discuss 10 best global stocks to buy now. If you want to see more stocks in this selection, check out 5 Best Global Stocks To Buy Now.
A strong U.S jobs market may actually make a recession more likely. Wall Street is concerned that the Fed could see additional hirings as an indication that the economy needs to be slowed down further to tame inflation. This could lead to more aggressive rate hikes by the Federal Reserve and elevates recessionary risk. Brian Jacobsen, senior investment strategist at Allspring Global Investments, told AP News on October 8:
“The employment situation is still good and that might be a little frustrating to the Fed. The Fed thinks we need more people unemployed in order to make sure inflation comes down and stays down.”
As per Minneapolis Fed President Neel Kashkari, there is “almost no evidence” that inflation has peaked, and the Fed is nowhere close to stopping rate hikes. He “fully” anticipates “some losses” and “some failures around the global economy” as markets react and adjust to the higher interest rates.
In these uncertain times, investors cannot put all their eggs in one basket and the need to diversify portfolios increases. It is a good idea to consider the best global stocks instead of going for American companies only. Some of the best global names include Accenture plc (NYSE:ACN), Shell plc (NYSE:SHEL), and Medtronic plc (NYSE:MDT).
We selected the companies headquartered outside of the United States for this analysis, shortlisting stocks on the basis of positive analyst coverage, strong business fundamentals, growth prospects, and solid hedge fund sentiment as of the second quarter of 2022.
Best Global Stocks To Buy Now
10. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Number of Hedge Fund Holders: 14
Anheuser-Busch InBev SA/NV (NYSE:BUD) is headquartered in Leuven, Belgium, and the company is engaged in the production and distribution of alcoholic beverages and soft drinks worldwide. Anheuser-Busch InBev SA/NV (NYSE:BUD) sells its beverages under the Budweiser, Corona, Stella Artois, Bud Light, Castle, Castle Lite, and Skol brands. In Q2 2022, total sales volumes increased by 3.4%. There was a 9.7% increase in combined revenues of global brands – Budweiser, Stella Artois, and Corona, outside of their respective home markets.
On October 5, RBC Capital analyst James Edwardes Jones raised the price target on Anheuser-Busch InBev SA/NV (NYSE:BUD) to EUR 70 from EUR 64 and maintained an Outperform rating on the shares. The analyst noted that at current exchange rates, the weakness of the Euro and Pound versus the US Dollar, will contribute about $5 billion towards debt reduction in 2022. This should lower Anheuser-Busch InBev SA/NV (NYSE:BUD)’s net debt to EBITDA ratio to approximately 3.3-times by the end of 2022 and “largely eliminate” one of investors’ greatest turn-offs about the stock, as per the analyst.
According to Insider Monkey’s data, 14 hedge funds were long Anheuser-Busch InBev SA/NV (NYSE:BUD) at the end of Q2 2022, compared to 20 funds in the last quarter. Ken Fisher’s Fisher Asset Management featured as the largest position holder in the company, with more than 9 million shares worth about $487 million.
In addition to Accenture plc (NYSE:ACN), Shell plc (NYSE:SHEL), and Medtronic plc (NYSE:MDT), Anheuser-Busch InBev SA/NV (NYSE:BUD) is one of the best global stocks to buy now.
Here is what ClearBridge Investments Large Cap Growth Strategy has to say about Anheuser-Busch InBev SA/NV (NYSE:BUD) in its Q4 2021 investor letter:
“To make room for these new names and optimize the growth profile of the Strategy, we exited two additional positions during the quarter. We sold out of Anheuser-Busch InBev as we see too much work ahead for the world’s largest beer maker to re-ignite sales growth post COVID-19. While the company should benefit from a recovery in the on-premise channel, individual country complexities, the hedging of raw materials, and senior management turnover leave us more confident in the Strategy’s other reopening-related holdings.”
9. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 17
Next on our list of the best global stocks is British American Tobacco p.l.c. (NYSE:BTI), a London-based provider of tobacco and nicotine products to consumers worldwide. The company offers vapor, tobacco heating, modern oral nicotine products, combustible products, and traditional oral products.
On September 28, British American Tobacco p.l.c. (NYSE:BTI) declared a $0.7404 per share quarterly dividend, in line with previous. The dividend is payable on November 15, to shareholders of record as of September 30. British American Tobacco p.l.c. (NYSE:BTI) delivered a dividend yield of 7.63% on October 7.
Barclays analyst Gaurav Jain on August 30 raised the price target on British American Tobacco p.l.c. (NYSE:BTI) to 4,500 GBp from 4,400 GBp and reiterated an Overweight rating on the shares.
Among the hedge funds tracked by Insider Monkey, Rajiv Jain’s GQG Partners is the leading stakeholder of British American Tobacco p.l.c. (NYSE:BTI), with more than 34 million shares worth $1.46 billion. Overall, 17 hedge funds were long British American Tobacco p.l.c. (NYSE:BTI) at the end of Q2 2022, compared to 19 funds in the last quarter.
Here is what Distillate Capital has to say about British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter:
“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”
8. CNH Industrial N.V. (NYSE:CNHI)
Number of Hedge Fund Holders: 25
CNH Industrial N.V. (NYSE:CNHI) was founded in 1842 and is headquartered in London, the United Kingdom. The company manufactures, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, and specialty vehicles in North America, Europe, South America, and internationally. It operates through five segments – Agriculture, Construction, Commercial and Specialty Vehicles, Powertrain, and Financial. CNH Industrial N.V. (NYSE:CNHI) is one of the best global stocks to buy now.
On October 6, CNH Industrial N.V. (NYSE:CNHI) announced that its CNH Industrial Capital division priced $400 million of 5.45% notes due 2025, with an issue price of 99.349%. The notes will offer interest semi-annually on April 14 and October 14 every year, beginning from April 14, 2023. The notes will mature on October 14, 2025 and the offering will conclude on October 14, 2022.
Baird analyst Mircea Dobre on September 27 initiated coverage of CNH Industrial N.V. (NYSE:CNHI) with an Outperform rating and a $17 price target. CNH Industrial N.V. (NYSE:CNHI) is the second largest global agriculture equipment manufacturer with balanced global sales and the company has recently shown significant improvement, while more margin upside is available, the analyst told investors in a research note.
According to Insider Monkey’s data, 25 hedge funds held stakes worth $606.2 million in CNH Industrial N.V. (NYSE:CNHI) at the end of June 2022, compared to 33 funds in the prior quarter worth $1.2 billion. Harris Associates is the largest stakeholder of the company, with 96.5 million shares valued at more than $1 billion.
Here is what Oakmark Fund specifically said about CNH Industrial N.V. (NYSE:CNHI) in its Q2 2022 investor letter:
“We sold our position in Iveco Group (Italy), in favor of names that, in our opinion, offer a more favorable risk/return profile. Iveco Group’s arrival in the Fund stemmed from CNH Industrial N.V. (NYSE:CNHI)’s demerger of its trucks and commercial vehicles business in early January. We continue to hold CNH Industrial as we believe it holds an attractive valuation at its current price.”
7. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 25
Stellantis N.V. (NYSE:STLA) is a Netherlands-based company engaged in the design, engineering, manufacturing, and sale of luxury and mainstream automobiles, engines, transmission systems, metallurgical products, and production systems worldwide. On September 20, Stellantis N.V. (NYSE:STLA) announced an investment in Italy as part of its transition to electric vehicles. In collaboration with Punch Powertrain, Stellantis N.V. (NYSE:STLA) plans to boost production in Italy of electrified dual-clutch transmissions for hybrid and plug-in hybrid EVs. It is one of the best global stocks to invest in.
After spending time with Stellantis N.V. (NYSE:STLA)’s management, Jefferies analyst Philippe Houchois said that he was “highly confident” on the company’s operating performance and “the soundness of its transition from Legacy OEM.” The stock’s valuation discount to competitors “remains somewhat of a mystery” given the quality of execution, including Stellantis N.V. (NYSE:STLA)’s high cash generation and conversion. The analyst maintained a Buy rating and an $18 price target on the shares on September 6.
According to Insider Monkey’s data, Stellantis N.V. (NYSE:STLA) was part of 25 hedge fund portfolios at the end of June 2022, compared to 29 in the earlier quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest position holder in the company, with roughly 37 million shares worth about $457 million.
6. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 32
Novo Nordisk A/S (NYSE:NVO) is a Denmark-based healthcare company that engages in the research, development, manufacture, and marketing of pharmaceutical products worldwide. Novo Nordisk A/S (NYSE:NVO) operates through two segments – Diabetes and Obesity care, and Biopharma. On October 3, Novo Nordisk A/S (NYSE:NVO) reported successful results from the phase 3a ONWARDS 5 trial of its insulin icodec, and the company expects to apply for approval with regulatory authorities in United States, the European Union, and China in the first half of 2023.
On September 28, Oddo BHF analyst Martial Descoutures upgraded Novo Nordisk A/S (NYSE:NVO) to Outperform from Neutral with a DKK 910 price target.
According to Insider Monkey’s data, 32 hedge funds were long Novo Nordisk A/S (NYSE:NVO) at the end of the second quarter of 2022, compared to 31 funds in the earlier quarter. Jim Simons’ Renaissance Technologies is the biggest position holder in the company, with 17.5 million shares worth about $2 billion.
Like Accenture plc (NYSE:ACN), Shell plc (NYSE:SHEL), and Medtronic plc (NYSE:MDT), elite hedge funds are piling into Novo Nordisk A/S (NYSE:NVO) for global exposure.
Here is what Baron Health Care Fund has to say about Novo Nordisk A/S (NYSE:NVO) in its Q2 2022 investor letter:
“We added to our position in Novo Nordisk A/S, a leading global biopharmaceutical company headquartered in Denmark that specializes in treatments for diabetes, obesity, and other chronic diseases. We wrote about Novo Nordisk in last quarter’s letter. We continue to believe Novo Nordisk’s diabetes and anti-obesity franchise will drive attractive revenue and earnings growth for many years to come. We think both Novo Nordisk and competitor Eli Lilly and Company(which we also own in the Fund) can be successful in these large markets.”