In this piece, we will look at the 13 best ADR stocks to invest in.
ADRs, or American Depository Receipts, are the US-listed securities of foreign firms that allow investors in America to buy and trade the shares within America. While standard equities are issued by the firm itself, ADRs are issued by US banks that hold the corresponding shares in their overseas branches.
The key purpose of ADRs is that they allow investors in America to benefit from trading the shares of foreign companies. These companies are among the largest and most important in the world, with notable examples being the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), ASML Holding (NASDAQ:ASML), and Alibaba Group Holding Limited (NYSE:BABA).
All three firms are the focus of considerable attention on Wall Street. For instance, Steve Weiss, founder and managing partner at Short Hills Capital Partners, joined CNBC’s Halftime Report on November 24th and discussed Alibaba. Weiss explained that the reasons why he bought the stock included the fact that his “concerns with China have been, number one, that they would demand the delisting of a variable interest entities that really are in Cayman and you only own a profit stream or revenue stream, you don’t own any assets when you own those ADRs.” When asked whether he was a longer term player, Weiss commented that “the stock is very reasonably priced and I just think from here, it shold be going straight up, China problems aside.” Since his remarks, the shares are down by 2.5%.
Our Methodology
For our list of 13 Best ADR Stocks to Invest In, we used the Finviz screener to make a list of the 40 most valuable ADR firms that trade on US exchanges. The list was ranked by the number of hedge fund holders as of Q3 2025, and the stocks present in it were chosen. The hedge fund data was sourced from Insider Monkey’s database. On an additional note, while UBS officially calls its shares Global Registered Shares, they are widely considered to be ADRs and have been included for completeness sake.
Why are we interested in the stocks that hedge funds pile into? 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13. Unilever PLC (NYSE:UL)
Number of Hedge Fund Holders: 27
Unilever PLC (NYSE:UL) is one of the biggest consumer goods companies in the world. The start of the year has been quite busy for the firm as it completes its divestment of the ice cream brand Magnum and its CEO announces an allocation of €1.5 billion for mergers and acquisitions. On December 9th, Unilever PLC (NYSE:UL) CEO Fernando Fernandez explained that the firm will focus on the US through this mergers strategy, according to a Reuters report. On December 6th, the firm had completed its Magnum demerger, with Magnum’s shares now listed in Amsterdam.
Unilever PLC (NYSE:UL)’s fiscal third quarter earnings results saw the firm report an underlying sales growth of 3.9% and and a 1.5% volume growth. For the full year 2025, the firm expects to grow its underlying sales by 3% to 5%. The quarter was a good one for Unilever PLC (NYSE:UL) when it came to the firm’s business in emerging markets. It saw growth in Indonesia and China, and overall, only the ice cream business’ performance remained worrisome. On November 5th, Jefferies raised its share price target for Unilever PLC (NYSE:UL) to 4,000 GBp from an earlier 3,800 GPp, The Fly reported. Keeping an Underperform rating on the shares, it remained slightly skeptical about a 2.5% volume growth.
12. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 32
Sanofi (NASDAQ:SNY) is a French pharmaceutical firm that has been at the center of several analysts’ attention lately. One such coverage came from Guggenheim on December 9th after the firm cut its stock rating to Neutral from Buy and removed its share price target. As per the details, the research firm’s latest sentiment for Sanofi (NASDAQ:SNY) is based on a changed outlook about the pharma company’s drug pipeline as it believes that Sanofi does not have any significant catalysts in its pipeline for the time being.
However, while Guggenheim might be doubtful, Sanofi (NASDAQ:SNY) is making moves to expand its pipeline. On December 4th, the firm announced that it had completed the acquisition of British biotechnology company Vicebio Limited. Through the deal, Sanofi (NASDAQ:SNY) aims to grow its presence in the market for respiratory vaccines. The firm also scored a win in the European Union in November after it, along with Regeneron, secured approval from the European Commission for their Dupixent (dupilumab) drug to treat and manage hives. The approval came after phase three trials of the treatment, and Regeneron’s President and CSO, underscored its importance by commenting that the drug represented ” first innovation for patients with this disease in over a decade.”
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