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.”
11. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 33
Swiss pharmaceutical giant Novartis AG (NYSE:NVS) has entered into a massive $1.7 billion partnership with British pharmaceutical firm Relation Therapeutics to develop treatments for allergic diseases, according to a report from Bloomberg which surfaced on December 9th. Through this deal, the firm will use Relation’s AI platform to develop new drugs by studying the genetics involved in diseases.
A day earlier, Novartis AG (NYSE:NVS)’s shares were upgraded to Overweight from Neutral by investment bank JPMorgan. As part of its coverage, the bank also raised the firm’s share price target to CHF125 from an earlier CHF95 as it based its optimism on the back of positive sentiment regarding the firm’s outlook for 2026.nNovartis AG (NYSE:NVS) has been busy with partnerships in 2025 as its deal with Relation isn’t the only one that it has inked. For instance, the firm bought Avidity Biosciences for a whopping $12 billion price tag in October. Through the deal, Novartis AG (NYSE:NVS) aims to boost its RNA drug development portfolio to cover rare ailments such as the Duchenne Muscular Atrophy. Apart from the Avidity deal, the Swiss pharma firm has also entered into agreements to buy Tourmaline Bio for $1.4 billion for its cardiovascular portfolio and Regulus Therapeutics for a $1.7 billion price tag to boost its renal portfolio.
10. UBS Group AG (NYSE:UBS)
Number of Hedge Fund Holders: 37
Swiss banking giant UBS Group AG (NYSE:UBS)’s shares rose earlier this week after a Reuters report claimed that the Swiss government was softening its regulations regarding capital buffers. These rules could have required UBS Group AG (NYSE:UBS) to keep as much as $24 billion in additional capital. The new rules came into play after the firm acquired Swiss bank Credit Suisse, and the report came after UBS Group AG (NYSE:UBS) had confirmed in November that it was interested in shifting its headquarters to the US. The bank and the Swiss government did not share any details about the potential change in rules.
As it faces off with the potential new rules, UBS Group AG (NYSE:UBS) is also busy integrating Credit Suisse into its operations. A report from the Swiss publication SonntagsBlick on December 7th claimed that the bank might reduce its headcount by as much as 10,000 by 2027. Responding to Reuters’ request for comment, UBS Group AG (NYSE:UBS) outlined that “The role reductions will take place over the course of several years and will be mostly achieved through natural attrition, early retirement, internal mobility and inhousing of external roles.” As the year ends, UBS Group AG (NYSE:UBS) hopes to conduct as much as $0.9 billion in share buybacks in the fourth quarter to bring the total value of the year’s buybacks to $3 billion.
9. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 37
Rio Tinto Group (NYSE:RIO) is one of the biggest mining companies in the world. Its CEO, Simon Trott, made major announcements on December 4th when he shared the firm’s plans to generate as much as $10 billion in through restructuring via divestments and other other strategies. Trott was speaking to Rio Tinto Group (NYSE:RIO)’s investors in London as he shared that the firm might consider letting go of assets such as land, infrastructure, and mining to generate $10 billion. With the global rush for data center construction due to the AI boom underway, the Rio Tinto Group (NYSE:RIO) CEO also outlined that his firm now expects to product between 860,000 metric tons and 875,000 tons of copper this year. The update guidance was higher than the previous forecast of 780,000 tons to 850,000 tons.
The CEO’s announcement came soon after Rio Tinto Group (NYSE:RIO) signed an upgraded agreement with the Nyiyaparli People in Australia’s Pilbara region. Through the agreement, the firm will work with the aboriginal people in the Nyiyaparli Country and it covers the firm’s Hope Downs mining facility. Deutsche Bank kept a Hold rating for Rio Tinto Group (NYSE:RIO)’s shares on December 5th and set a £53 share price target for the stock.
8. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 41
GSK plc (NYSE:GSK) is one of the largest pharmaceutical companies in the world. The firm scored a major win on December 10th after the Food and Drug Administration (FDA) granted its lung cancer drug risvutatug rezetecan the Orphan Drug Designation. Such a designation allows drugs with small target populations to receive financial incentives, such as tax breaks, to spur research and development. GSK plc (NYSE:GSK)’s risvutatug rezetecan, also called the GSK’227, received the FDA’s designation after its phase 1 clinical trials called ARTEMIS-001 showed positive responses in patients with serious small-cell lung cancer. GSK plc (NYSE:GSK) also shared additional details about the small-cell lung cancer (SCLC) market. According to the firm, this cancer accounts for 13% of all cancers in America, with 29,500 people expected to be diagnosed with the disease.
Investment bank JPMorgan kept a Sell rating and a £17 share price target for GSK plc (NYSE:GSK) on December 8th. The firm’s subsidiary, TESARO, is currently in a court battle with biotechnology firm AnaptysBio. The tussle surrounds license requirements, with the GSK plc (NYSE:GSK) subsidiary insisting that it is entitled to reduce royalty payments and obtain a perpetual license for the drug dostarlimab. On the other hand, Anaptys insists that TESARO failed to fulfill its license obligations dating to March 2024.
7. British American Tobacco p.l.c. (NYSE:BTI)
Number of Hedge Fund Holders: 47
British American Tobacco p.l.c. (NYSE:BTI) is one of the largest tobacco companies in the world. The firm made a crucial announcement on December 9th when it revealed that it expects 2026 revenue to sit at the low end of its mid-term growth guidance of 3% to 5%. British American Tobacco p.l.c. (NYSE:BTI) added that it expected to follow a similar trend for its 2026 adjusted profit from operations, i.e., to sit at the low end of the 4% to 6% range. As for the current year, British American Tobacco p.l.c. (NYSE:BTI) expects its revenue and adjusted profit to grow by 2% each.
British American Tobacco p.l.c. (NYSE:BTI), like other mega tobacco companies, has had to contend with the growth in the vaping and electronic cigarettes industry. The firm has been making moves in the market, as it announced on October 28th that it would stop a pilot program for an unlicensed vape in the US. In its latest release, British American Tobacco p.l.c. (NYSE:BTI) bemoaned that its “apour category continues to be impacted by illicit proliferation.” However, the firm added that it believes “Vuse is well positioned to benefit from stronger Federal and State level enforcement.” In terms of the financial impact, British American Tobacco p.l.c. (NYSE:BTI) outlined that it expects fiscal year revenue to drop by high single digits for its Vuse brand due to the proliferation and other factors.
6. Shell plc (NYSE:SHEL)
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL)’s shares were downgraded by UBS on November 25th on the back of recent strong performance, which left the bank wary of future gains. The price target change covered the firm’s shares that trade on the London Exchange. These shares have gained more than 8% year to date, and UBS cut the target to £30 from an earlier £32. Alongside the target cut, the bank also reduced the rating to Neutral from Buy. It pointed out that while Shell plc (NYSE:SHEL) will benefit from its mobility and gas businesses, medium-term headwinds such as resource constraints and tight growth prospects made it slightly wary.
UBS’ rating and price target action came soon after Shell plc (NYSE:SHEL) reported its earnings for the third quarter of 2025. The results saw the firm’s $68.15 billion in revenue mark a 4% annual drop. However, the firm’s adjusted earnings of $5.4 billion beat the LSEG consensus of $5.05 billion to demonstrate that the firm’s top-line revenue did slow down in its latest reported quarter.
On December 9th, Shell plc (NYSE:SHEL) announced that two of its offshore platforms in the Gulf of Mexico would temporarily shut down due to trouble at a third-party pipeline system and assured that production would resume within a day.
5. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
Healthcare giant Novo Nordisk A/S (NYSE:NVO)’s shares were downgraded by Argus Research to Hold from Buy on December 8th, The Fly reported. The firm’s GLP-1 drugs were at the heart of the downgrade, as the analyst report outlined that Novo Nordisk A/S (NYSE:NVO) was experiencing market share losses of the drugs and could end up facing competition from generic drugs. Additionally, Argus also pointed towards a weak drug pipeline as it remarked that Novo Nordisk A/S (NYSE:NVO)’s semaglutide trials for Alzheimer’s disease had failed to impress.
The research firm was referring to a November 24th data release by Novo Nordisk A/S (NYSE:NVO) that which saw the firm’s trial evaluating the potential of its semaglutide drug for Alzheimer’s disease fall short of market expectations. While the study had aimed to slow down mental decline in patients by 20%, Novo Nordisk A/S (NYSE:NVO) revealed that a drop in disease-related biomarkers did not lead to delayed disease progression.
The pharma company is also seeking to expand its weight loss drug markets, with a Reuters report suggesting Novo Nordisk A/S (NYSE:NVO) plans to expand to India. More recently, the firm received some relief in the country after a Delhi court blocked pharma firm Sun Pharma from selling a semaglutide formulation in India until Novo Nordisk A/S (NYSE:NVO)’s patent expires.
4. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 54
AstraZeneca PLC (NASDAQ:AZN), the British pharmaceutical company best known for its COVID-19 drug, was at the center of analyst action on December 9th after a report from TD Cowen. The report saw the firm raise the healthcare company’s share price target to $105 from $95 and keep a Buy rating on the stock. TD Cowen outlined that AstraZeneca PLC (NASDAQ:AZN)’s drug pipeline and presence in high-growth markets had influenced its optimism about the firm.
TD Cowen’s action on AstraZeneca PLC (NASDAQ:AZN) came soon after Morgan Stanley had raised the firm’s share price target to $103 from $93 on December 3rd, as per The Fly. As part of its coverage, the bank pointed out that AstraZeneca PLC (NASDAQ:AZN)’s pharmaceutical market was fundamentally stable, but investors aiming for growth should target other sectors.
The two firms’ optimism for the pharma company came after Bank of America had added AstraZeneca PLC (NASDAQ:AZN) to its top stocks for 2026 list and raised the share price target to $108.50 from $91.70. As is the case with TD Cowen, BofA had also outlined a robust pipeline for AstraZeneca PLC (NASDAQ:AZN)’s drugs. These drugs include SERENA-4, Eplontersen, and AVANZAR. Within these, Eplontersen is the firm’s planned treatment for a rare kind of neuropathy, while AVANZAR is investigating a treatment for non-small cell lung cancer.
3. ASML Holding (NASDAQ:ASML)
Number of Hedge Fund Holders: 82
ASML Holding (NASDAQ:ASML) is one of the most important firms in the world since it is the only one capable of manufacturing high-end chip manufacturing machines. As a result, its equipment is also often the subject of global geopolitical controversies. The controversies once again surfaced on December 9th following a report from the Dutch television current affairs program Nieuwsuur. This report outlined that ASML Holding (NASDAQ:ASML) had sold equipment to a subsidiary of the Chinese chip manufacturing giant SMIC, the Shenzhen International Quantum Academy, and an entity linked to the Chinese army. In response, the firm commented that while it could not confirm the report, all its business dealings conformed with export control laws. ASML Holding (NASDAQ:ASML)’s high-end machines face export control regulations that prevent their sale to Chinese entities.
The chip equipment maker’s dominance means that it is one of the top ADR stocks in our list. On December 3rd, Bank of America raised ASML Holding (NASDAQ:ASML)’s share price target to $1,331 from $1,092. Keeping a Buy rating on the shares, BofA outlined that the firm’s stock could experience a higher re-rating in 2027. It based the optimism on factors such as a growth in capital expenditure for lithography and improved margins.
2. Spotify Technology S.A. (NYSE:SPOT)
Number of Hedge Fund Holders: 111
Spotify Technology S.A. (NYSE:SPOT) is one of the largest audio streaming platforms in the world. On December 5th, Erste Group downgraded its shares to Hold from Buy and cited growth concerns as the reason. In its report, the firm pointed out that Spotify Technology S.A. (NYSE:SPOT) could suffer from weaker consumer confidence in the US and struggle to justify its current valuation as a result.
A couple of days later, Spotify Technology S.A. (NYSE:SPOT announced that it aims to allow its premium subscribers access to music videos. The videos will be available in beta to users in the US and Canada. The growth of online streaming, with YouTube’s rise, appears to have also influenced Spotify Technology S.A. (NYSE:SPOT)’s operating calculus.
Spotify Technology S.A. (NYSE:SPOT)’s heft was visible in its fiscal third-quarter earnings report in November. The results saw the firm reveal that its subscribers grew by 12% annually to 281 million. Spotify Technology S.A. (NYSE:SPOT)’s monthly active users also grew by 11% to 713 million. While Erste Group is concerned about the impact of tight consumer spending on revenue, Philip Securities increased Spotify Technology S.A. (NYSE:SPOT)’s share price target to $650 from $600 on November 10th and changed the rating to Accumulate from Reduce as it cited limited churn despite higher Premium prices.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 194
Unsurprisingly, the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks at the top of our list of the best ADR stocks. On December 10th, the firm reported its November 2025 revenue report. The figures saw Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s year-to-November revenue sit at NT$3,474 billion for a strong 32.8% annual growth. During November, the firm’s revenue was NT$343.6 billion, which marked a 24.5% annual jump and a 6.5% sequential drop. From January to November 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) had earned NT$2,616 billion in revenue, while its revenue in November 2024 was NT$276 billion.
Given the fact that the firm is one of the world’s largest and most advanced contract chip manufacturers, the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is also often at the center of geopolitics and reports about espionage. One such report surfaced on December 10th when The New York Times reported that the Taiwanese government had invoked a national security law to investigate the departure of a former employee to Intel Corporation. The report came after prosecutors in Taiwan had indicted a local Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) supplier on December 2nd for failing to stop an employee from allegedly stealing the contract chip manufacturer’s trade secrets.
While we acknowledge the potential of TSM 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 TSM and that has 100x upside potential, check out our report about this cheapest AI stock.
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