Lest you think only emerging markets and frontier markets have value, consider the developed economy of France if you’re looking for a bargain buy. The region trades for a forward price-to-earnings ratio of about 10.0 and a 20% discount to sales.
Surprising? Well, you’ll probably find this even more interesting: French stocks are up about 20% in the last six months or so to almost double the performance of the S&P 500. So this discount valuation comes even after a decent period of growth.
So how can you play this trend? The iShares MSCI France ETF (EWQ) is one way, via a diversified fund that owns some of the biggest names in France. There’s also oil giant Total (TOT), which is headquartered in France but has a global flavor, as well as French healthcare giant Sanofi (SNY)
But if you want a true French investment, consider French financial giant Societe Generale (SCGLY). Soc Gen is a giant in retail and investment banking for the nation, with a market cap of almost $50 billion. And like American banks, SCGLY is a focused play on a cyclical recovery that results in increased business and consumer lending.