Four cheap global stocks for diversification

These names from the Morningstar Global Markets ex-US Index have sound fundamentals and are trading at meaningful discounts to fair value

Vikram Barhat 17 April, 2019 | 5:00PM

As a sound investment approach, geographic diversification of portfolio allows investors access to a broader opportunity set beyond their national boundaries. The need to hunt for investments further afield has never been more pressing than in today’s environment of geopolitical and economic uncertainty.

Timing becomes even more compelling when one considers that the U.S. market has climbed steadily this year, pushing valuations higher. Moreover, the fact that many industry watchers predict superior performance for non-U.S. equities compared to their American peers over the next 10 years creates added incentive for investors to look overseas.

The following high-quality investing ideas from across geographies and sectors are part of the Morningstar Global Markets ex-US Index. For investors with some risk appetite, these names represent long-term growth opportunities and portfolio diversification. Not only do these businesses boast sound fundamentals and long growth runway, their stocks are trading at a meaningful discount to their fair value, according to Morningstar research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
BAE Systems PLC ADR34.56 USD2.22
LINE Corp ADR48.17 USD0.35
Roche Holding AG ADR44.03 USD0.39
Telefonica SA ADR6.58 USD-2.52

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.