12 best emerging market stocks to buy now


In this article, we discuss the 12 best emerging market stocks to buy now. If you want to learn more about emerging market stocks, go directly to 5 best emerging market stocks to buy now.

Emerging markets around the world have been battered by a stronger US dollar, higher inflation and tighter financial conditions in recent months, with major stocks like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Baidu, Inc. (NASDAQ:BIDU), and Vale SA (NYSE:VALLEY) all facing the heat of a macro slowdown in the global economy. However, the slowdown has created an attractive buying opportunity for investors who can buy shares of strong companies at discounted prices and reap the rewards later.

Emerging markets, a term used to broadly categorize markets in the emerging economies of Brazil, Russia, India, China and South Africa, suffered a fifth consecutive quarter of negative returns, and the mixed asset class is now well into its worst pullback in decades. According to a report per Lazard Asset Management, however, the sector’s bottom-up fundamentals remain generally strong, valuations look attractive and investor positioning is also light.

Between June and September of this year, the MSCI Emerging Markets Index fell almost 11%. This brought the index’s year-to-date decline to an alarming 27%. To put that number into context, the MSCI World Developed Markets Index was down just 6% in the third quarter, which is a year-to-date decline of around 25%. The Russian invasion of Ukraine and fears of a housing market crash in China, in addition to supply chain issues affecting manufacturing in India, are weighing on emerging markets.

By Data Gathered by the Institute of International Finance, weak inflows into emerging market debt for the year to the end of May were almost all offset by outflows into equities. The IIF predicted that foreign portfolio flows to emerging markets year-over-year could decline 42% to less than $1 trillion in 2022. Ashish Chugh, portfolio manager for Loomis Sayles, said told the news agency Reuters recently that there was bullish sentiment in emerging markets like China, due to political support and significant pressure from government officials to stimulate growth.

Our Methodology

Companies that operate in the emerging markets sector have been selected for the list. Analyst ratings for these companies and the latest updates on them are also discussed to provide additional context. Data from approximately 900 elite hedge funds tracked by Insider Monkey in Q2 2022 was used to identify the number of hedge funds that hold stakes in each company.

12 best emerging market stocks to buy now

Image by MayoFi from Pixabay

The best emerging market stocks to buy now

12. Sigma Lithium Corporation (NASDAQ:SGML)

Number of hedge fund holders: 3

Sigma Lithium Corporation (NASDAQ:SGML) engages in the exploration and development of lithium deposits in Brazil. It is one of the best emerging market stocks to invest in. On September 22, LG Energy Solutions announced that it had entered into a partnership with Sigma Lithium to supply battery-grade lithium. On July 12, Sigma Lithium said it had completed construction of 25% of its Greentech lithium plant. The company expects 600 professionals to work at the site.

Among hedge funds tracked by San Francisco-based investment firm Insider Monkey Potrero Capital Research is a major shareholder of Sigma Lithium Corporation (NASDAQ: SGML), with 847,394 shares worth more than $13.1 million.

Along with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Baidu, Inc. (NASDAQ:BIDU) and Vale SA (NYSE:VALE), Sigma Lithium Corporation (NASDAQ:SGML) is one of the best emerging market stocks to watch. buy now.

11. YPF Sociedad Anónima (NYSE:YPF)

Number of hedge fund holders: 10

YPF Sociedad Anónima (NYSE:YPF) is an energy company engaged in upstream and downstream oil and gas activities in Argentina. It is one of the best emerging market stocks to invest in. On September 1, YPF SA and Petronas of Malaysia were discussing plans to build a liquefied natural gas plant and a new gas pipeline in Argentina. If the agreement materializes, it would generate an investment of 40 billion dollars. The two companies have worked together before.

On Oct. 13, investment adviser Grupo Santander upgraded YPF (NYSE:YPF) stock from Outperforming to Underperforming with a price target of $12.70. Analyst Walter Chiarvesio has released the ratings update.

Among hedge funds tracked by London-based investment firm Insider Monkey Marshall Wace LLP is a major shareholder of YPF Sociedad Anónima (NYSE:YPF), with 3 million shares worth over $10 million.

10. MakeMyTrip Limited (NASDAQ:MMYT)

Number of hedge fund holders: 10

MakeMyTrip Limited (NASDAQ:MMYT) is an online travel agency that sells travel products and solutions in multiple countries. It is one of the top emerging market stocks to invest in. On October 14, MakeMyTrip announced a partnership with Lohono Stays, a provider of India’s luxury vacation rental market, to develop more luxury home stay segments across the country to attract international travelers. MakeMyTrip is also offering a third night free on all bookings at all listed Lohono Stays properties.

On September 14, JPMorgan analyst Ankar Rudra launched coverage of MakeMyTrip Limited (NASDAQ:MMYT) stock with an overweight rating and a price target of $44, noting that the company is a key beneficiary. long-term structural growth in online travel.

Among hedge funds tracked by London-based investment firm Insider Monkey Marshall Wace LLP is a major shareholder of MakeMyTrip Limited (NASDAQ:MMYT), with 1.7 million shares worth over $44 million.

At the end of the second quarter of 2022, 10 hedge funds in the Insider Monkey database held stakes worth $90 million in MakeMyTrip Limited (NASDAQ:MMYT), compared to 8 in the previous quarter worth of $87 million.

9. Pampa Energia SA (NYSE:WFP)

Number of hedge fund holders: 11

Pampa Energia SA (NYSE: PAM) is an integrated power company engaged in the generation and transmission of electricity in Argentina. It is one of the top emerging market stocks to invest in. On September 30, Argentina was in talks with the country’s natural gas producers such as Pampa Energia, YPF SA and other producers, for the financing of the second phase of a pipeline to transport the fuel to the centers of consumption. About $2 billion is needed for this project.

At the end of the second quarter of 2022, 11 hedge funds in Insider Monkey’s database held stakes worth $78.5 million in Pampa Energia SA (NYSE:PAM), up from 10 in the prior quarter. worth $78.3 million.

8. Itau Unibanco Holding SA (NYSE:ITUB)

Number of hedge fund holders: 11

Itaú Unibanco Holding SA (NYSE:ITUB) offers a range of financial products and services to individuals and businesses in Brazil and internationally. It is one of the elite emerging market stocks to invest in. On August 26, Itaú Unibanco unveiled a share buyback plan to buy back up to 75 million preferred shares, without capital reduction, canceled or replaced on the market, to be held in cash. This program will run from August 25, 2022 to February 24, 2024.

On September 29, Goldman Sachs analyst Tito Labarta upgraded Itau Unibanco (NYSE:ITUB) stock to Buy from Neutral with a price target of $7, down from $5.40, noting that there was a good risk/reward ratio in the banks due to the still healthy macro. environment and more visibility on industry trends.

Among hedge funds tracked by Bermuda-based investment firm Insider Monkey Orbis Investment Management is a major shareholder of Itaú Unibanco Holding SA (NYSE:ITUB), with 29.8 million shares worth over $127.8 million.

At the end of the second quarter of 2022, 11 hedge funds in the Insider Monkey database held stakes worth $397 million in Itau Unibanco (NYSE:ITUB), up from 19 in the prior quarter worth of $945 million.

7.Daqo New Energy Corp. (NYSE:DQ)

Number of hedge fund holders: 16

Daqo New Energy Corp. (NYSE: DQ) manufactures and sells polysilicon for photovoltaic products in the People’s Republic of China. It is one of the first emerging market stocks to invest in. On October 18, XinjiangDaqo and Inner Mongolia Daqo, subsidiaries of Daqo New Energy, announced that they had signed a five-year high-purity polysilicon supply pact with a major solar panel manufacturer in China. The actual prices will be negotiated later by the companies.

At the end of the second quarter of 2022, 16 hedge funds in Insider Monkey’s database held stakes worth $331 million in Daqo New Energy Corp. (NYSE:DQ), up from 18 in the prior quarter worth $128 million.

6. AXIS Capital Holdings Limited (NYSE:AXS)

Number of hedge fund holders: 16

AXIS Capital Holdings Limited (NYSE: AXS) offers a variety of specialty insurance and reinsurance products worldwide. It is one of the important emerging market stocks to invest in. On October 14, AXIS Capital became the first insurer in North America to adopt a policy specifying that it will not underwrite new projects without free, prior and informed consent. This established global best practice for insurers’ policies on Indigenous rights.

At the end of the second quarter of 2022, 16 hedge funds in Insider Monkey’s database held stakes worth $570.7 million in AXIS Capital Holdings Limited (NYSE: AXS), up from 23 in the prior quarter. worth $689 million.

Alongside Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Baidu, Inc. (NASDAQ:BIDU) and Vale SA (NYSE:VALE), AXIS Capital Holdings Limited (NYSE:AXS) is one of the best stocks in the markets emerging to buy now.

Click to read on and see the top 5 emerging market stocks to buy now.

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Disclosure. None. 12 best emerging market stocks to buy now is originally published on Insider Monkey.

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