While the global economy isn’t circling the drain, growth forecasts for 2025 are rather anemic — and that’s if the fallout of a potential trade war doesn’t wind up worse than expected. What’s more, after two consecutive 20%-plus years for the S&P 500, a lot of value has already been priced in to stocks.
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Amid such an outlook, many investors are looking to reduce their risk profile through diversification. One way to diversify your portfolio is to add international stocks to lessen the impact of potential economic trouble in a single market.
The following picks are among the best international stocks to buy right now given their scale, stable operations and potential to supplement U.S. stocks:
Stock | Market Cap |
ASML Holding NV (ticker: ASML) | $298 billion |
HSBC Holdings PLC (HSBC) | $180 billion |
Novo Nordisk A/S (NVO) | $351 billion |
Nestle SA (OTC: NSRGY) | $208 billion |
SAP SE (SAP) | $307 billion |
Tencent Holdings Ltd. (OTC: TCEHY) | $454 billion |
Toyota Motor Corp. (TM) | $237 billion |
ASML Holding NV (ASML)
A provider of advanced equipment for chipmakers, ASML is a Netherlands-based company that is essential to global supply chains thanks to its critical role in measuring and inspecting semiconductors. It should go without saying that any significant waste or delays for chipmakers costs real time and money, making ASML a valued partner for major semiconductor firms. That gives it a strong and reliable revenue stream.
Semiconductor markets can sometimes be volatile based on global pricing and demand trends. As an added bonus, the nature of this company as a service provider to the industry gives it a degree of insulation from broader chipmaking economics.
HSBC Holdings PLC (HSBC)
London-based megabank HSBC may be recognizable to some U.S. consumers, but elsewhere, it is a well-known name that provides banking and financial services worldwide. Like other major enterprises in the sector, it operates a diversified business, including personal and commercial banking, wealth management and capital markets segments.
Over the last year, HSBC has outperformed the S&P 500, with a generous 4% yield on top of share appreciation. That rate is significantly higher than many U.S. peers in the financial sector and considerably above the 1.4% paid by S&P 500 components, on average. If you want to look beyond the U.S. for a leading financial stock, HSBC is worth a look.
Novo Nordisk A/S (NVO)
Denmark-based Novo Nordisk is a pharmaceutical stock with the perfect specialty for 2025: diabetes and obesity care. It also provides treatments for rare blood and endocrine system disorders, but this focus is clearly the bread-and-butter of NVO, with blockbusters like its recent Wegovy treatment that just topped $2.5 billion in sales for Q3, up 48% from the previous quarter.
Shares have softened up a bit lately as many investors were front-running the success of this treatment and now most of the growth is priced into Novo Nordisk stock. But the durable revenue from diabetes products provides a firm foundation, and the proven drug pipeline of this century-old pharma leader makes it one of the best international stocks to buy for 2025.
[READ: 7 Best International Dividend Stocks for Diversification]
Nestle SA (OTC: NSRGY)
Founded in 1866 and one of the biggest consumer staples stocks on the planet, Switzerland-based Nestle is a reliable and profitable company, and thus worth attention from all global investors. Shares have been soft the last few years in part due to a focus on healthier eating in the West that has weighed on the sales of processed foods.
But the reality is that Nestle’s Kit-Kat chocolates, Häagen-Dazs ice cream, Hot Pockets frozen foods and other products are consistently in shopping carts and have strong baseline demand even if they have a modest growth outlook. If you’re looking for stability, you can’t go wrong with this massive consumer leader.
SAP SE (SAP)
German enterprise software giant SAP has digital solutions for businesses across a host of categories, from customer relationship management tools to supply chain and logistics to human resources. The company has been aggressively investing in cloud services over the past few years, and like many modern tech stocks, it now has tremendously reliable revenue thanks to a software-as-a-service model.
At roughly $300 billion in market value and a slower growth rate than flashy small-cap AI and crypto plays, SAP isn’t as dynamic as some other technology firms out there. But with free cash flow that is on pace to top $4 billion this fiscal year, this software leader has a firm foundation that will serve investors well.
Tencent Holdings Ltd. (OTC: TCEHY)
Sometimes referred to as the Google of China, Tencent is a digital titan that dominates the Asian tech landscape. It’s valued at about $450 billion, and it has varied business lines including online advertising, mobile payments, video streaming, web browser software, cloud computing, big data analytics and artificial intelligence.
At the end of 2024, China’s central government signaled plans for aggressive stimulus efforts to spur consumer demand, and the nation’s central bank said it will loosen monetary policy. With entrenched operations related closely to broader spending trends, Tencent is a natural recipient of these measures. In the long term, you can’t find a more dominant tech stock in the region.
Toyota Motor Corp. (TM)
Japanese auto giant Toyota ranks as the No. 1 automaker in the world with about 11 million vehicles sold in 2023. With operations in every market and a wide product portfolio, this industry leader has both the know-how and the capital to remain relevant in an evolving environment.
A few years back, not all investors were pleased with the fact that Toyota leaned more heavily on its hybrid vehicles instead of electric-only cars. With the bloom off the rose for a lot of electric vehicle stocks and many traditional automakers cutting back on EV investments, Toyota has been looking quite shrewd. As the industry leader with roughly $300 billion in annual revenue, this auto icon is one of the best international stocks to buy for 2025.
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7 Best International Stocks to Buy originally appeared on usnews.com