The Trump Rally is going ballistic on Wednesday, with U.S. large-cap stocks melting higher in what could only be characterized as a buying panic. The Dow Jones Industrial Average is less than 500 points from the 20,000 threshold and is up more than 8% from its pre-election low.
But as you probably know, the advance hasn’t been widely participated in. Areas like financials, industrials and basic materials stocks have led the way along with impressive gains in the U.S. dollar. Yet many other areas — such as international stocks, bonds, technology stocks and yield-sensitive assets — have been hammered.
This is changing now, as investors appear to be rounding back to areas of underperformance in a search for value. International stocks appear to be on the move as initial fears over possible trade tariffs from president-elect Donald Trump have given way to optimism that his fiscal stimulus plans could lift overall global growth.
With that as a backdrop, here are five international stocks that are ready to move higher:
International Stocks to Buy: Ensco PLC (ESV)
Shares of Ensco PLC (NYSE:ESV), the London-based offshore oilfield services provider, hav popped over their 200-day moving average for the first time since the summer of 2014. ESV now looks ready to come off its year-long malaise near $10-per-share.
Ensco stock is down a whopping 80% from the highs seen in 2013 as oilfield activity stalled in the wake of the oil price decline that started more than two years ago. A rebound is underway for ESV now driven by the recent Organization of the Petroleum Exporting Countries production freeze agreement.
ESV will next report results on Feb. 22 after the close. Analysts are looking for earnings of 7 cents per share on revenues of $509.7 million.
International Stocks to Buy: Petroleo Brasileiro SA Petrobras (ADR) (PBR)
Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) shares have been consolidating above their 50-day moving average, capping a strong rally out of the January/February low that has seen shares more than triple. A resumption of the uptrend here would could put PBR’s summer 2014 high near $21 in play — which would be worth nearly double.
Petrobras has been a beneficiary of rally in energy prices surrounding the OPEC production freeze agreement as well as the nascent rebound underway in emerging market stocks overall. The iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) is challenging its upper Bollinger Band for the first time since September.
International Stocks to Buy: Deutsche Bank AG (USA) (DB)
Shares of German financial giant Deutsche Bank AG (USA) (NYSE:DB) are surging higher this week, returning to levels not seen since April. The rise in DB stock can be attributed, in part, to a relatively mellow market response to the failure of proposed constitutional reforms in Italy to pass a referendum vote followed by the resignation of Prime Minister Renzi. Moreover, the electoral defeat of an anti-establishment euro-skeptic candidate in Austria over the weekend also bolstered sentiment for Deutsche Bank.
DB had been hit hard over the summer and into the fall amid the fallout from the surprise Brexit vote in June, driven by fears over a possible breakup of the Eurozone. Also bolstering the sentiment for Deutsche Bank is the expectation that the European Central Bank will extend its bond-buying program by six months to at least the end of September 2017.
International Stocks to Buy: JD.com Inc(ADR) (JD)
Shares of Chinese online retailer JD.com Inc(ADR) (NASDAQ:JD) are on the verge of breaking out of a multi-month consolidation range with resistance near $28 — setting up a run at highs near $30 not seen since April.
JD shares rallied out of the November low thanks to the reporting of better-than-expected quarterly earnings and strong forward guidance on a 57% year-over-year increase in customer accounts. JD.com is benefiting from growing evidence of an economic turnaround in China after years of instability and weakness.
JD will next report results on Feb. 28 before the bell. Analysts are looking for a loss of 47 cents per share on revenues of $76.4 billion.
International Stocks to Buy: Cemex SAB de CV (ADR) (CX)
Shares of Mexican cement maker Cemex SAB de CV (ADR) (NYSE:CX) are pushing above their 50-day moving average to challenge their upper Bollinger Band for the first time since October.
While the CX was initially hit in the post-Trump election selloff as Mexican stocks were dragged down by fears America’s new president would renegotiate trade deals and build the southern border wall, sentiment has flipped after another Mexican cement company offered to help build the wall.
CX enjoyed an analyst upgrade from HSBC on Nov. 14 and recently announced the sale of some U.S.-based assets with the proceeds being used to reduce its balance sheet leverage.