Stock Analysis & Ideas

The 3 Best International Stocks for 2023

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Why limit your watch list to businesses in your backyard when there’s a whole world out there of potential winners? So, get your passport ready, and prepare to expand your geographic horizons with these high-conviction picks for 2023.

Ready to take a trip abroad and scope out some investable brands in far-away lands? As we embark on a new year, it’s time to look beyond local businesses, as some of the most intriguing trading opportunities involve international stocks.

Granted, this will require extra due diligence as cross-border investing can entail political and economic complexities that are literally foreign to many retail traders. The rewards could certainly be worth the extra effort, however, as the following top-tier international stocks have “bargain” written all over them – and great deals are always worth a look, regardless of their physical location. Let’s take a look, then, at CPG, IGIC, and ASML, three worthy international stock picks for 2023.

Crescent Point Energy (NYSE:CPG)

Let’s start our journey abroad to the Great White North, also known as Canada, where Crescent Point Energy drills for oil and natural gas. While Crescent Point Energy gets light, sweet crude oil out of the ground, investors can collect some sweet distributions as the company has a 3.1% dividend yield on a trailing-12-month basis and a 4.4% yield on a forward basis.

Bargain hunters should pay close attention, as Crescent Point Energy’s P/E ratio of 2.3x is absolutely rock-bottom. It’s entirely conceivable that CPG stock could revisit its $10 from the summer of 2022, especially if oil and natural gas prices rise. Plus, Crescent Point is an aggressive driller that expects to generate annual average production of 134,000 to 138,000 boe/d (barrels of oil equivalent) in 2023, so feel free to consider this Canadian energy up-and-comer.

What is the Price Target for CPG Stock?

CPG has a Strong Buy consensus rating based on four unanimous Buy ratings assigned in the past three months. The average Crescent Point Energy stock price target of $10.97 implies 59.3% upside potential.

International General Insurance Holdings (NASDAQ:IGIC)

Registered in Bermuda, International General Insurance Holdings is ready to insure almost anything — energy, property, general aviation, marine cargo, professional indemnity, and even political violence. This is a truly international insurer, with operations ranging from Bermuda to London, Malta to Dubai, Casablanca, and beyond.

Again, I’ve handpicked a high-yield, low-valuation prospective winner for you. While International General Insurance Holdings’ 2.75% annual dividend yield is tempting, the company’s 5.7x P/E ratio is practically irresistible. Furthermore, International General Insurance Holdings demonstrated across-the-board year-over-year improvements in gross written premiums, net premiums earned, profit for the period, and EPS during 2022’s third quarter – a solid financial performance for this international pick.

What is the Price Target for IGIC Stock?

IGIC has a Moderate Buy consensus rating based on a single Buy rating assigned in the past three months. The average International General Insurance Holdings stock price target of $10 implies 21.5% upside potential.

ASML Holding (NASDAQ:ASML)

ASML Holding hails from the Netherlands, and it’s not exactly a microchip maker. Rather, this Dutch company creates equipment that can be used to design and manufacture microchips. It’s an indirect way to wager on a global recovery in the chip market – and with ASML Holding, you can park your capital in a business that usually beats analysts’ quarterly consensus EPS estimates.

The 0.95% trailing dividend yield (1.17% forward yield) that ASML Holding pays isn’t the main selling point, but it does sweeten the deal. More important is the company’s long-term growth story, as ASML Holding envisions sales growth from €18.6 billion euros in 2021 to €44 billion – €60 billion euros in 2030. Moreover, as JPMorgan (NYSE:JPM) analyst Sandeep Deshpande points out, ASML Holding has a distinct advantage as the “sole supplier” of extreme ultraviolet lithography (EUL) tools for the microprocessor manufacturing industry. Clearly, this is an international niche-market mover that tech investors should put on their radars.

What is the Price Target for ASML Stock?

ASML has a Strong Buy consensus rating based on seven unanimous Buy ratings assigned in the past three months. The average ASML Holding stock price target of $686.60 implies 10.5% upside potential.

Conclusion: Should You Consider International Stocks in 2023?

Crescent Point Energy, International General Insurance Holdings, and ASML Holding are about as diverse as three companies can be. Yet, they all provide compelling reasons for prospective investors to think outside the box and take a chance on some interesting foreign businesses.

All three of them pay dividends and offer growth potential for this year and the years to come. With this in mind, there’s only one conclusion to make: international stocks are definitely worth looking into in 2023, and CPG, IGIC, and ASML could be big winners for open-minded financial traders.

Disclosure

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