On Monday, European stock markets went up as investors waited for several new trade deal announcements from the White House.
The Stoxx Europe 600 index closed 0.4% higher. France’s CAC 40 rose 0.4% while Germany’s DAX increased by 1.1%. However, the UK’s FTSE 100 was the only major index to fall as it dropped 0.2%.
US Treasury Secretary Scott Bessent said on CNBC’s “Squawk Box” that several trade announcements would come in the next 48 hours, but he did not say which countries would be involved.
The lack of details about which countries are involved and which companies will be impacted as a result of the new trade deal announcements reflects ongoing uncertainty. It seems that European stock markets are cautiously optimistic as they wait for new trade deal announcements from the White House.
With this background in mind, let’s take a look at the 11 best foreign stocks to buy according to hedge funds.
A financial adviser looking over a portfolio of securities and stocks.
Our Methodology
To compile our list of the 11 best foreign stocks to buy according to hedge funds, we used the Finviz stock screener. We sorted our results based on market capitalization and picked the top 40 foreign stocks. Next, we focused on the top 11 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds. Finally, the 11 best foreign stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q1 2025.
Why do we care about what hedge funds do? 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).
11 Best Foreign Stocks to Buy According to Hedge Funds
11. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 60
Novo Nordisk A/S (NYSE:NVO) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On June 18, TD Cowen maintained its “Buy” rating on Novo Nordisk A/S (NYSE:NVO) with a price target of $105. This decision came after meetings with the company’s senior leaders in Copenhagen, Denmark.
The research firm pointed out that management feels “encouraged” by volumes of Wegovy, Novo Nordisk’s (NYSE:NVO) weight loss drug, through the NovoCare program that helps patients get access to medications.
TD Cowen analysts also suggested that the REDEFINE 1 trial might have had some issues because it included a high proportion of male participants and had a short duration. Novo Nordisk A/S (NYSE:NVO) is addressing these concerns in its new Phase III trials for CagriSema.
The firm noted that Novo Nordisk A/S (NYSE:NVO) is fully committed to developing Cagrilintide monotherapy. Additionally, the EVOKE trials for Alzheimer’s disease now include time-to-progression endpoints.
Novo Nordisk A/S (NYSE:NVO) is a Danish multinational pharmaceutical company that has leading positions in diabetes care, obesity care, haemophilia care, and therapies for rare endocrine disorders.
10. Medtronic plc (NYSE:MDT)
Number of Hedge Fund Holders: 63
Medtronic plc (NYSE:MDT) is one of the 11 Best Foreign Stocks to Buy According to Hedge Funds. On June 6, Needham analysts reiterated a “Hold” rating on Medtronic plc (NYSE:MDT). This decision came after the company announced its plans to spin off its Diabetes business into a separate public company.
The analysts believe this split could be good for both Medtronic plc (NYSE:MDT) and the new Diabetes business.
Needham analysts conducted a sum-of-parts analysis, looking at Medtronic plc (NYSE:MDT) without the Diabetes business and the Diabetes business as a separate entity. The firm’s base case scenario suggests that the combined value of the two companies would be about $93 per current Medtronic plc (NYSE:MDT) share.
The analysts believe that while the spin-off might not unlock significant value right away, it has the potential to improve shareholder value in the long term.
This strategic move by Medtronic plc (NYSE:MDT) is seen as a way to improve its business structure. The company is looking to focus on its core operations and boost overall performance.
Medtronic plc (NYSE:MDT) is one of the largest medical device companies in the world. The company is headquartered in Galway, Ireland, and its technologies and therapies include cardiac devices, surgical robotics, insulin pumps, surgical tools, and patient monitoring systems.
Hedge Fund Resource Center