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12 Cheap Global Stocks to Buy

In this article, we will look at 12 cheap global stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Cheap Global Stocks to Buy.

U.S. Stocks Vs Non-U.S. Stocks

On February 28 director of institutional asset management at Ritholtz Wealth Management, Ben Carlson, appeared in an interview on TD Ameritrade where he talked about investing in U.S. stocks versus non-U.S. stocks. Carlson discussed how investing in the United States has long been viewed as a beneficial strategy due to the consistent positive returns over time. However, he discussed that there is potential for success in international investing as well. Carlson pointed out that according to The Credit Suisse Global Yearbook, since 1900 developed stock markets outside of the US have generated an average annual return of 4-6% after inflation adjustments. Carlson said that while international stocks have lagged since the global financial crisis of 2008 and U.S. tech stocks have driven outperformance, it is important to note that historically other regions of the world have done well.

Ben Carlson said that non-US stocks have been looking “way more attractive if you value them at anything, cash flows, earnings, price-to-book, whatever it is”. Carlson thinks this is because the U.S. is dominated by growth stocks, and primarily tech stocks, and there is more value oversees in financials, industrials, and materials stocks. Carlson noted that value stocks tend to do better in a period of high inflation and rising interest rates, such as the one we are in right now, and so he is bullish on non-U.S. stocks since they are “mostly value stocks”.

Ben Carlson further elaborated on the underperformance of international stocks relative to U.S. stocks in the past. He noted that there are several factors that contributed to this trend, including low interest rates, low inflation, and a strong dollar. Ben Carlson pointed out that between 1970 and 2008, “international stocks and U.S. stocks were basically neck and neck”, however since then U.S. stocks have outperformed international stocks. Ben Carlson thinks that investing in international stocks is the value play right now, given higher inflation, higher interest rates, and a weak dollar.

While U.S. stocks have driven outperformance globally over the past decade, there is potential for success in other regions of the world, and a diversified portfolio can provide a balance of risk and return. We have compiled a list of the 12 best cheap global stocks to buy now according to hedge funds which include Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), General Motors Company (NYSE:GM), and Suncor Energy Inc. (NYSE:SU). Let’s now discuss these stocks, among others, in detail below.

Source:Pixabay

Our Methodology

To determine the best cheap global stocks to buy now, we screened for stocks that were trading at a PE multiple of less than 15, as of March 30. We sorted our screen by market cap and looked for large companies that have worldwide operations and draw at least 40% of their revenue from outside the U.S. We then sourced the hedge fund sentiment for each stock from Insider Monkey’s database of over 900 elite hedge funds. We narrowed down our selection to the stocks that were the most widely held by hedge funds and were the cheapest. We have ranked these stocks in ascending order of the number of hedge funds that have stakes in them. Where the number of hedge funds was the same, we used the PE ratio as the tie-breaker.

Cheap Global Stocks to Buy

12. TotalEnergies SE (NYSE:TTE)

PE Ratio (TTM) as of March 30: 7.98

Number of Hedge Fund Holders: 21

This January, JPMorgan analyst Christyan Malek raised his price target on TotalEnergies SE (NYSE:TTE) to EUR 73 from EUR 68 and maintained an Overweight rating on the shares. 21 hedge funds held stakes in the stock at the close of the fourth quarter of 2022. The total value of these stakes amounted to $1.93 billion, up from $1.56 billion in the preceding quarter when 22 hedge funds held positions in the company.

TotalEnergies SE (NYSE:TTE) is one of the best cheap global stocks to buy now. As of March 30, the stock has a TTM PE ratio of 7.98 and has surged by 27.34% over the past 6 months.

As of December 31, Alyeska Investment Group is the top stockholder in TotalEnergies SE (NYSE:TTE) and has a stake worth $60.5 million.

Some of the most popular stocks among elite hedge funds that are currently trading at bargain levels include Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), General Motors Company (NYSE:GM), and Suncor Energy Inc. (NYSE:SU).

ClearBridge Investments made the following comment about TotalEnergies SE (NYSE:TTE) in its Q4 2022 investor letter:

“Stock selection in the energy sector was also a strong driver of returns, benefiting from an improving global macro outlook. Prospects for a milder recession, increased demand from China reopening from its COVID-19 restrictions, and the recognition that the market hasn’t discounted oil company valuations based on commodity prices all served to benefit energy company stock prices. Holdings such as TotalEnergies SE (NYSE:TTE), a leading French oil, and natural gas company, was a recipient of these macro tailwinds. We are constructive on the long-term prospects of the energy sector, with it being the second largest relative overweight in the portfolio. We believe that as the market becomes more comfortable with the industry’s intermediate earnings and capital discipline from producers, our high-quality companies in the sector should continue to perform.”

11. BHP Group Limited (NYSE:BHP)

PE Ratio (TTM) as of March 30: 8.74

Number of Hedge Fund Holders: 28

BHP Group Limited (NYSE:BHP) is one of the best cheap global stocks to buy now. The stock is trading at a PE multiple of 8x, as of March 30, and has gained 21.97% over the past 6 months.

This March, Berenberg analyst Richard Hatch updated his price target on BHP Group Limited (NYSE:BHP) to 2,800 GBP from 2,900 GBP and maintained a Buy rating on the shares.

At the close of the fourth quarter of 2022, 28 hedge funds were long BHP Group Limited (NYSE:BHP) and disclosed collective stakes worth $1.42 billion in the company. Of those, Two Sigma Advisors was the leading investor in the company and held a stake worth $46.9 million.

10. Vale S.A. (NYSE:VALE)

PE Ratio (TTM) as of March 30: 4.41

Number of Hedge Fund Holders: 28

Vale S.A. (NYSE:VALE) was spotted on 28 hedge funds’ portfolios at the close of Q4 2022 that disclosed stakes worth $1.88 billion in the company. This is compared to 27 hedge funds in the previous quarter with stakes worth $1.43 billion. The hedge fund sentiment for the stock is positive.

On March 16, Itau BBA upgraded Vale S.A. (NYSE:VALE) to Outperform from Market Perform and reiterated its $18 price target on the shares. The stock is one of the best cheap global stocks to buy now and is trading at a PE multiple of 4x, as of March 30.

As of December 31, GQG Partners is the largest investor in Vale S.A. (NYSE:VALE) and has disclosed a stake worth $363 million in the company.

9. Rio Tinto Group (NYSE:RIO)

PE Ratio (TTM) as of March 30: 8.92

Number of Hedge Fund Holders: 29

On March 30, Morgan Stanley raised its price target on Rio Tinto Group (NYSE:RIO) to 5,840 GBP from 5,790 GBP and maintained an Equal Weight rating on the shares.

Rio Tinto Group (NYSE:RIO) is placed ninth on our list of the best cheap global stocks to buy now. As of March 30, the stock is is trading at a TTM PE ratio of 8.92 and has gained 20.04% over the past 6 months.

At the end of the fourth quarter of 2022, 29 hedge funds were eager on Rio Tinto Group (NYSE:RIO) and disclosed collective positions worth $2.5 billion. Of those, GQG Partners was the top stockholder in the company and held a stake worth $600 million.

8. GSK plc (NYSE:GSK)

PE Ratio (TTM) as of March 30: 13.13

Number of Hedge Fund Holders: 39

This March, Deutsche Bank analyst Emmanuel Papadakis upgraded GSK plc (NYSE:GSK) to Buy from Hold and raised his price target on the shares to 1,700 GBP from 1,500 GBP.

As of March 30, GSK plc (NYSE:GSK) has returned 7.55% to investors over the past 6 months and is trading at a PE multiple of 13x. The stock is one of the best cheap global stocks to buy now, according to hedge funds.

39 hedge funds disclosed having stakes in GSK plc (NYSE:GSK) at the close of Q4 2022. The total value of these stakes amounted to $2.31 billion, up from $1.81 billion in the previous quarter with 37 positions. The hedge fund sentiment for the stock is positive.

As of December 31, Point72 Asset Management is the largest shareholder in GSK plc (NYSE:GSK) and holds a position worth $227.4 million.

Ariel Investment made the following comment about GSK plc (NYSE:GSK) in its Q3 2022 investor letter:

“By comparison, health care leader GSK plc (NYSE:GSK) was the largest detractor from performance in the quarter. Investors are concerned about legal liabilities associated with its antacid drug Zantac. While it is impossible to know the outcome with certainty, our preliminary assessment suggests that the decline in market capitalization exceeds the likely financial impact on the company.”

7. Shell plc (NYSE:SHEL)

PE Ratio (TTM) as of March 30: 5.09

Number of Hedge Fund Holders: 40

At the end of the fourth quarter of 2022, 40 hedge funds were bullish on Shell plc (NYSE:SHEL) and held stakes worth $3.04 billion in the company. Of those, Orbis Investment Management was the leading shareholder in the company and disclosed a position worth $393 million.

On February 2, Shell plc (NYSE:SHEL) reported strong earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $2.60 and outperformed EPS estimates by $0.29. The stock has gained 16.14% over the past 6 months, as of March 30, and is trading at a TTM PE ratio of 5.09. Shell plc (NYSE:SHEL) is placed seventh among the best cheap global stocks to buy now.

On February 26, Goldman Sachs analyst Michele Della Vigna upgraded Shell plc (NYSE:SHEL) to Buy from Neutral and raised her price target on the stock to $85 from $74.

Artisan Partners made the following comment about Shell plc (NYSE:SHEL) in its Q4 2022 investor letter:

“We scaled back our weighting in clean energy this quarter, which is a part of the portfolio’s environment theme, to take profits after a successful run in 2022. We did so by trimming our position in Shell plc (NYSE:SHEL), a stock we added to the portfolio in Q1 2022. As an integrated energy company, approximately one third of Shell’s revenues come from transition fuels, such as LNG, and another third comes from new energy sources such as green hydrogen. LNG is one of the cleanest fossil fuels and represents a potential bridge to the future by replacing higher carbon energy sources with lower carbon ones while renewable technologies mature. As the largest LNG supplier in the world, we believe Shell is particularly well-positioned to help Europe meet its energy needs as it looks for ways to replace imported Russian oil and gas with new sources after the embargo.”

6. Canadian Natural Resources Limited (NYSE:CNQ)

PE Ratio (TTM) as of March 30: 7.87

Number of Hedge Fund Holders: 41

Shares of Canadian Natural Resources Limited (NYSE:CNQ) have surged by 15% over the past 6 months, as of March 30, and the stock has a PE ratio of 7.87.

This March, Morgan Stanley analyst Devin McDermott updated his price target on Canadian Natural Resources Limited (NYSE:CNQ) to C$87 from C$90 and maintained an Equal Weight rating on the shares.

Canadian Natural Resources Limited (NYSE:CNQ) was spotted on 41 investors’ portfolios at the end of Q4 2022. These funds disclosed collective positions worth $1.84 billion in the company. As of December 31, Yacktman Asset Management is the most prominent shareholder in the company and has a stake worth $842.5 billion.

Some of the best cheap stocks to buy now according to hedge funds include Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Canadian Natural Resources Limited (NYSE:CNQ), General Motors Company (NYSE:GM), and Suncor Energy Inc. (NYSE:SU).

Click to continue reading and see 5 Cheap Global Stocks to Buy

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Disclosure: None. 12 Cheap Global Stocks to Buy is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

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AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

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Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…