In this article, we’ll look at the 10 Best Emerging Markets Stocks to Buy Right Now.
Emerging-market stocks, which have climbed to record highs, show no signs of slowing. The rally is being driven by growing optimism about artificial intelligence and by investors continuing to pour money into developing economies.
The iShares MSCI Emerging Markets ETF is already up by more than 10% year to date, outperforming the S&P 500, which is flat over the same period. The impressive year to date gains comes on the heels of emerging market stocks rallying by about 30% in dollar terms in 2025. Much of this strength was driven by strong gains in Asian markets like Taiwan and South Korea as the region benefited from high demand for AI-related hardware and solutions.
“EM equities are a weak dollar story along with rotation out of crowded US tech – especially mega-cap tech,” said Billy Leung, an investment strategist at Global X Management. “We are seeing global flows rotate into other regions and sectors with Asia tech and semi supply chains benefiting from AI capex expectations.”
According to Goldman Strategists, strong earnings across regions and favorable macroeconomic trends are among the tailwinds that should push emerging market stocks higher in 2026. Resilience of Chinese exports, a weakening US dollar, and economic benefits of falling commodity prices should also support the rally. The investment bank expects the MSCI Emerging Markets index to return nearly 30% in 2026.
“Looking ahead, the performance obviously sets a very high bar to replicate,” Trivedi says. “But some of the tailwinds present in 2025 are going to repeat in 2026, so we still expect good returns after a great 2025.” says Kamakshya Trivedi, chief foreign exchange and emerging markets strategist at Goldman Sachs.
Amid the expected bulk of returns in emerging markets, let’s take a look at some of the best stocks to buy now.
Our Methodology
To come up with the 10 best emerging markets stocks to buy now, we used the iShares MSCI Emerging Markets ETF and Yahoo Finance stock screeners to identify companies based in different emerging markets. We picked stocks with positive upside potential as of February 17. We then used Insider Monkey’s Q3 2025 Hedge Fund database to rank the stocks according to the largest number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Emerging Markets Stocks to Buy Right Now
10. ZTO Express (NYSE:ZTO)
Stock Upside Potential: 6.65%
Number of Hedge Fund Holders: 12
ZTO Express (NYSE:ZTO) is one of the best emerging markets stocks to buy right now. On February 9, Macquarie analyst Ellie Jiang upgraded ZTO Express (NYSE:ZTO) to an Outperform from a Neutral and raised the price target to $26.60 from $18.40.
The analyst upgraded the stock, impressed by the company’s signal of preliminary fourth-quarter volume growth of 9%, which topped the industry’s 5%. In addition, the company indicated revenue growth of 8% to 19% and a gross profit margin of 23% to 28%. The analyst expects the company to capture shifting customer pricing preferences owing to its high-quality yet affordable value proposition.
The research firm expects the company’s total parcel volume growth to be 8%, topping the industry’s 7%. It also expects the company to benefit from an improving average selling price, driven by industry pricing recovery.
Earlier, on February 4, ZTO Express announced the pricing of $1.5 billion in convertible senior notes due 2031. The company plans to use up to $1 billion in net proceeds from the offering to fund share repurchases of Class A ordinary shares. The remaining $500 million is to fund concurrent share repurchases and for general corporate purposes.
ZTO Express (NYSE:ZTO) is a leading Chinese express delivery company that functions as a major, high-volume, low-cost logistics provider for e-commerce, delivering billions of parcels annually through a nationwide network.
9. Credicorp Ltd. (NYSE:BAP)
Stock Upside Potential: 6.88%
Number of Hedge Fund Holders: 32
Credicorp Ltd (NYSE:BAP) is one of the best emerging markets stocks to buy right now. On February 12, Credicorp Ltd (NYSE:BAP) delivered fourth-quarter and full-year 2025 results. Fourth quarter net profit totaled $468.8 million, translating to earnings per share of $5.88.
The company generated $2.18 billion in revenue, which dropped to $1.8 billion on accounting for interest expenses. Total profit for the full year totaled $1.94 billion, or $24.35 per share, with revenue of $6.55 billion.
The strong financial results came on loan growth being propelled by strong retail momentum at BCP, as the company also targets double-digit growth in core segments. The company’s focus remains on scaling and monetizing its digital ecosystem. Credicorp management is projecting loan growth of 8.5%, with net interest margin expected to remain stable in the mid-to-high 6% range.
“We closed 2025 on a very solid footing, entering the new year in a stronger position than we did at the end of 2024,” said Gianfranco Ferrari, CEO. “Our focus remains on three priorities: scale and monetize our digital ecosystem, expanding inclusion, and accelerating new revenue streams,” Ferrari added.
Credicorp Ltd. (NYSE:BAP) is the largest financial holding company in Peru, offering a comprehensive suite of financial services across Latin America, with a primary focus on universal banking, insurance, and pensions.
8. Li Auto Inc. (NASDAQ:LI)
Stock Upside Potential: 8.40%
Number of Hedge Fund Holders: 14
Li Auto Inc. (NASDAQ:LI) is one of the best emerging market stocks to buy right now. On February 10, Li Auto Inc. (NASDAQ:LI) hit a significant milestone with the 4,000th supercharging station going live. The new 5C station in Linghai Service Area comes with 20 chargers, 12 offering 5C speeds and 8 capable of 4C charging.
The launch of the new station affirmed Li Auto Inc.’s status as the owner of the industry’s largest self-built fast-charging stations. The company boasts 22,173 across 289 cities as it continues to expand its infrastructure footprint. Earlier on February 2, Li Auto Inc. confirmed that it delivered 27,668 vehicles in January, bringing its total deliveries to 1,567,883.
On February 9, JPMorgan downgraded Li Auto Inc. to Underweight amid growing concerns about slowing demand and rising costs. The investment bank is also wary of policy uncertainty for Chinese carmakers in 2026. Consequently, it has cut domestic passenger vehicle growth to a 4% decline from the previous 2%.
Li Auto Inc. (NASDAQ:LI) is a leading Chinese electric vehicle (EV) manufacturer that designs, develops, manufactures, and sells premium smart SUVs, primarily focusing on Extended-Range Electric Vehicles (EREVs) and, more recently, battery electric vehicles (BEVs).
7. Yum China Holdings, Inc. (NYSE:YUMC)
Stock Upside Potential: 10.74%
Number of Hedge Fund Holders: 31
Yum China Holdings, Inc. (NYSE:YUMC) is one of the best emerging markets stocks to buy right now. On February 4, Yum China Holdings, Inc. (NYSE:YUMC) delivered better-than-expected fourth-quarter and full-year results despite having to contend with a fierce price war in China’s food delivery market.
The company’s operating profit was up 25% year over year to $187 million, beating consensus estimates of $179.8 million. On the other hand, revenue was up 8.8% year over year to $2.8 billion, beating analysts’ estimates of $2.7 billion. Consequently, earnings per share came in at 40 cents, against the 35 cents expected.
The better-than-expected results came as Yum China Holding shrugged off rising pricing pressure from food delivery platforms as tech giants poured billions in subsidies to win customers. Amid heightened competition, the company plans to grow its store count to more than 25,000 while also aiming to achieve an operating margin of 11.5% by 2028.
Yum China Holdings, Inc. (NYSE:YUMC) is the largest restaurant company in China, primarily engaged in the operation, development, and franchising of quick-service and casual dining restaurant chains.
6. Nu Holdings Ltd. (NYSE:NU)
Stock Upside Potential: 16.71%
Number of Hedge Fund Holders: 99
Nu Holdings Ltd (NYSE:NU) is one of the best emerging markets stocks to buy right now. On January 26, Nubank announced it will invest about R$ 2.5 billion (~USD 475 million) over the next five years to expand and improve its offices in Brazil.
The company plans to enhance its workspace capacity in São Paulo, as it also plans new offices in Campinas, Rio de Janeiro, Belo Horizonte. Expansions in Mexico City and Bogotá, plus future sites in Washington, D.C. and Buenos Aires are also in the pipeline. The investment on workspace aligns with the rapid growth in customer numbers from 59 million to 127 million over the past five years, alongside record revenues and profits. The company sees modern office spaces as key to fostering collaboration, innovation, and long-term expansion.
On January 21, Nu Holdings announced a multi-year partnership with the Mercedes-AMG PETRONAS F1 Team. The company plans to leverage Formula 1’s global reach of over 827 million fans to boost its brand in Latin America, the U.S., and other markets. It already serves 127 million customers in Brazil, Mexico, and Colombia and has grown revenue by over 20% to $6.36 billion in the past year.
Nu Holdings Ltd. (NYSE:NU) is the publicly traded parent company of Nubank, the digital-first bank founded in Brazil. It is one of the world’s biggest digital banking platforms with over 127 million customers in Brazil, Mexico, and Colombia. Founded in 2013, it offers easy app-based services like credit cards, accounts, loans, and investments, focusing on keeping costs low while keeping customers highly engaged.
5. Baidu, Inc. (NASDAQ:BIDU)
Stock Upside Potential: 24.36%
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) is one of the best emerging markets stocks to buy right now. On February 10, Baidu, Inc. (NASDAQ:BIDU) joined forces with Uber Technologies to launch the Apollo Go autonomous ride-hailing service in Dubai in the coming month.
The autonomous vehicles are to operate in select locations, with plans to expand across Jumeirah city, subject to regulatory approvals and operational performance. Passengers booking Uber Comfort or UberX rides are to be matched with an Apollo Go vehicle.
“Bringing Apollo Go to Dubai via the Uber platform marks a pivotal step in our mission to provide safe, efficient, and accessible autonomous mobility worldwide,” said Nan Yang, Vice President of Baidu and General Manager of Overseas Business Unit, Intelligent Driving Group.
Last December, Baidu also teamed with Uber to bring its autonomous ride-hailing service to London. It has also unveiled Apollo Go in 22 cities globally and completed more than 17 million cumulative rides since the fourth quarter of last year.
Baidu, Inc. (NASDAQ:BIDU) is a leading Chinese multinational technology company specializing in internet-related services, products, and artificial intelligence (AI). It has evolved from a search engine provider into a comprehensive AI ecosystem, including full-stack AI technologies (AI chips, deep learning frameworks, and models).
4. Alibaba Group Holding Limited (NYSE:BABA)
Stock Upside Potential: 30.41%
Number of Hedge Fund Holders: 130
Alibaba Group Holding Limited (NYSE:BABA) is one of the best emerging markets stocks to buy right now. On February 18, Erste Group downgraded Alibaba Group Holding Limited (NYSE:BABA) from Buy to Hold. Analyst Hans Engel said the company’s operating margins have dropped and long-term debt has increased, raising concerns about its financial health.
At the same time, Alibaba is focusing on AI monetization through cloud services and developing its own AI chips, which Erste sees as a positive. Still, the firm expects the stock to trade sideways in the medium term rather than show strong gains.
On February 16, Alibaba Group Holding Limited unveiled a new artificial intelligence model designed to execute complex tax independently.
Qwen 3.5 is the new AI model from the Chinese tech giant, offering significant performance and cost improvements as it seeks to take on US rivals. According to Alibaba, the model is 60% cheaper to use and eight times better in processing large workloads than its predecessor. It also enables independent action-taking across mobile and desktop apps.
In addition, Qwen3.5 supports new coding and agentic capabilities and is compatible with open-source AI agents. It also comes with 397 billion parameters that shape how an AI system learns and reasons. Alibaba has also provided test results showing that its model performs at par with leading models from OpenAI, Anthropic, and DeepMind.
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology conglomerate that specializes in e-commerce, retail, internet services, cloud computing, and artificial intelligence. Founded in 1999, it operates a vast, data-driven ecosystem that connects manufacturers, sellers, and consumers globally, acting primarily as a platform intermediary rather than a traditional retailer that holds inventory.
3. Infosys Limited (NYSE:INFY)
Stock Upside Potential: 33.97%
Number of Hedge Fund Holders: 29
Infosys Limited (NYSE:INFY) is one of the best emerging markets stocks to buy right now. On February 17, Infosys Limited (NYSE:INFY) entered into a strategic partnership with Anthropic PBC to develop advanced artificial intelligence solutions.
Anthropic is to combine its Claude Models with Infosys Topaz AI products to help companies automate complex workflows and speed software deliveries. The merger will help organizations modernize legacy systems, accelerate migration, and reduce the cost of updating aging infrastructure.
The two companies will also help clients build AI agents that can persistently work across long, complex processes rather than in one-off interactions. Infosys and Anthropic are to focus on AI solutions for companies across the telecommunications and financial services sectors. The partnership is to expand into other industries, including software development and manufacturing.
“From modernizing financial services with intelligent risk management and compliance, to enabling engineering businesses to lead with AI-driven design and manufacturing, the goal is to leverage the joint expertise of Infosys and Anthropic to accelerate AI value realization for global enterprises,” Infosys Chief Executive Officer Salil Parekh said.
On February 12, Infosys announced it is expanding its partnership with ExxonMobil to create advanced cooling systems for data centers. These systems use ExxonMobil’s special immersion fluids to save energy and improve performance. Infosys will combine this with its AI-first platform, Topaz, and its cloud services, Cobalt, to make data centers more efficient, reliable, and sustainable.
The collaboration aims to help large enterprises, governments, and industries like finance, telecom, and manufacturing manage growing AI and high-performance computing needs. Infosys said this will cut energy costs and carbon emissions, while ExxonMobil highlighted how the partnership brings smarter and more resilient digital infrastructure.
Infosys Limited (NYSE:INFY) is a global leader in next-generation digital services, consulting, and outsourcing, helping businesses in over 50 countries navigate their digital transformation. It is one of the largest IT companies in India and specializes in helping enterprises adopt AI, cloud services, and agile workflows.
2. NetEase, Inc. (NASDAQ:NTES)
Stock Upside Potential: 34.27%
Number of Hedge Fund Holders: 28
NetEase, Inc. (NASDAQ:NTES) is one of the best emerging markets stocks to buy right now. On February 11, NetEase, Inc. (NASDAQ:NTES) delivered mixed fourth-quarter and fiscal 2025 financial results. Revenue in the quarter totaled $3.9 billion, representing a 3% year over year increase, as full-year revenues increased to $16.1 billion.
Net income attributable to shareholders totaled $1 billion or $0.32 a share, as full-year net income totaled $5.3 billion, translating to $1.68 a share. The better-than-expected results came as the company achieved comprehensive integration of AI across the full game development and innovation cycle. In addition, the company enjoyed strong engagement across established franchises, affirming the durability of long-term capabilities.
Meanwhile, analysts at Benchmark reiterated a Buy rating and a $158 price target following the fourth quarter and fiscal 2025 results. The positive stance underscores the research firm’s confidence in the company’s prospects, as its deferred revenue rose sharply to multi-year highs. The firm is also confident about the company’s gaming outlook owing to the resiliency of legacy franchises, strong retention from newer titles, and a clearer pipeline ahead. Benchmark also expects NetEase, Inc. to navigate industry transitions swiftly, owing to the strategic acceleration of AI integration across development workflows and innovation.
NetEase, Inc. (NASDAQ:NTES) is a leading Chinese internet technology company and the 2nd largest gaming developer in China, specializing in developing and operating popular mobile, PC, and console games worldwide. It also provides comprehensive online services, including intelligent learning (Youdao), music streaming (NetEase Cloud Music), and e-commerce.
1. XPeng Inc. (NYSE:XPEV)
Stock Upside Potential: 52.12%
Number of Hedge Fund Holders: 22
XPeng Inc. (NYSE:XPEV) is one of the best emerging markets stocks to buy right now. On February 9, XPeng Inc. (NYSE:XPEV) entered into a strategic partnership with Antom to launch a unified in-app payment solution for electric vehicle charging.
The two have launched an in-app payment system in Hong Kong, marking XPENG’s first push into payment opportunities on the global stage. The payment system will allow XPENG drivers in Hong Kong to initiate and pay for charging directly from the XPENG app using AlipayHK. The payment service will cover charging stations operated by Cornerstone Technologies and about 1,600 public EV chargers.
The strategic partnership is also poised to pave the way for XPENG to expand its footprint into other Southeast Asian markets, targeting Singapore, Thailand, Malaysia, and Indonesia.
Lawrence Li, General Manager of XPENG Overseas Charging, commented: “Our collaboration extends beyond charging payments – our ecosystems complement each other. By leveraging Antom and Ant International’s global user reach to drive traffic to XPENG’s branded charging stations, we can initiate broader cross-industry partnerships, bringing a richer, more engaging experience to users worldwide.”
On February 1, XPeng Inc. reported delivering 20,011 vehicles in January. The company also launched its new P7+ model across 36 countries and showcased it at the Brussels Motor Show. XPeng said these deliveries could cut greenhouse gas emissions by over 300,000 tons, equal to the carbon absorption of nearly 5 million tree seedlings over 10 years. By the end of 2025, XPeng was operating in 60 countries with a fast-growing sales network of 380 stores and more than 1,000 outlets worldwide.
XPeng Inc. (NYSE:XPEV) is a leading Chinese technology company that designs, develops, manufactures, and markets smart electric vehicles (Smart EVs). The company is heavily focused on AI-driven mobility, targeting tech-savvy middle-class consumers with vehicles that feature advanced, in-house developed software.
While we acknowledge the potential of XPEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XPEV and that has 100x upside potential, check out our report about this cheapest AI stock.
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