In this article, we discuss 5 best emerging market stocks to buy now. If you want to read about some more emerging market stocks, go directly to 12 Best Emerging Market Stocks to Buy Now.
5. TAL Education Group (NYSE:TAL)
Number of Hedge Fund Holders: 17
TAL Education Group (NYSE:TAL) provides K-12 after-school tutoring services in the People’s Republic of China. It is one of the best emerging market stocks to invest in. On July 29, the company posted earnings for the first fiscal quarter, reporting a revenue of $224 million. At the end of the second quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $116 million in TAL Education Group (NYSE:TAL), compared to 14 in the previous quarter worth $76.8 million.
In its Q4 2021 investor letter, TAO Value, an asset management firm, highlighted a few stocks and TAL Education Group (NYSE:TAL) was one of them. Here is what the fund said:
“Looking at the value destruction, TAL Education (TAL) is one of the most painful losses. Although the company is part of the “Mindful Compounder” bucket, it impaired by 95%. If anything, it is heavy price paid for learning that stock returns are driven by more than business and market factors, but also societal factors. I personally think having 4 out of the 5 top value destructions being recently started position in Chinese stocks is a bit biased, as the market may have overacted the most to anything China-related recently.”
4. Vale S.A. (NYSE:VALE)
Number of Hedge Fund Holders: 27
Vale S.A. (NYSE:VALE) produces and sells iron ore and iron ore pellets for use as raw materials in steelmaking. It is one of the elite emerging market stocks to invest in. On October 13, Vale revealed its official first phase of its C$945 million Copper Cliff Complex South Mine Project. This will double the ore production at the Ontario mine. According to the company, phase 1 will supply low carbon nickel and other critical minerals.
On October 5, Deutsche Bank analyst Liam Fitzpatrick maintained a Hold rating on Vale (NYSE:VALE) stock and lowered the price target to $19 from $20, noting that the reduced target prices and earnings estimates in metals and mining reflect weakening demand and macro risks.
At the end of the second quarter of 2022, 27 hedge funds in the database of Insider Monkey held stakes worth $1.8 billion in Vale S.A. (NYSE:VALE), compared to 27 in the previous quarter worth $2.4 billion.
3. Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM)
Number of Hedge Fund Holders: 29
Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) produces and distributes specialty plant nutrients, iodine, and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals, and other products and services. It is one of the top emerging market stocks to invest in. On October 13, the pharmaceutical diagnostic business of GE Healthcare unveiled a long term agreement with Sociedad Química y Minera de Chile to secure its supply of iodine and Computed Tomography procedures globally.
On October 4, Citi analyst PJ Juvekar maintained a Buy rating on Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) stock and lowered the price target to $123 from $126, noting that the earnings estimates for the firm in 2023 remain below the Street and consensus estimates, and need to come down further.
At the end of the second quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $658.6 million in Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM), compared to 28 the preceding quarter worth $493 million.
2. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 45
Baidu, Inc. (NASDAQ:BIDU) offers internet search services in China. It is one of the premier emerging market stocks to invest in. On October 17, Baidu announced that it has received permission from regional authorities of Southern Chinese cities of Guangzhou and Shenzhen to provide high mapping technologies to their automakers to enable advanced driver assistance systems on production vehicles.
On October 17, Barclays analyst Jiong Shao maintained an Overweight rating on Baidu, Inc. (NASDAQ:BIDU) stock and lowered the price target to $146 from $235, noting that cost control remains a key focus ahead of the Q3 results.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investment is a leading shareholder in Baidu, Inc. (NASDAQ:BIDU), with 2.6 million shares worth more than $393 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Baidu, Inc. (NASDAQ:BIDU) was one of them. Here is what the fund said:
“Baidu, Inc. (NASDAQ:BIDU), a leading Chinese artificial intelligence company, contributed to performance in the second quarter due to an improving outlook for its mobile ecosystem, continued market share gains in cloud computing, solid progress in autonomous vehicle development, and improving operational efficiency. We see significant upside for Baidu, given its strong competitive position across several of China’s key growth industries.”
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, tests, and sells integrated circuits and other semiconductor devices. It is one of the major emerging market stocks to invest in. On October 19, the chairman of Taiwan Semiconductor said that rising Taiwan-China and US-China tensions have brought more serious challenges for the semiconductor industry. On October 13, Taiwan Semiconductor said it had cut its capital expenditure 10% this year.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 81 in the preceding quarter worth $10 billion.
In its Q2 2022 investor letter, Mercator International Opportunity fund, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) was one of them. Here is what the fund said:
“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”
You can also take a peek at 10 Best Guru Stocks To Buy Now and Top 10 Health Insurance Stocks to Buy.
