There are thousands of listed stocks in the United States across sectors. However, portfolio diversification does not only imply exposure to multiple U.S. companies. Diversification is also not complete if we consider blue-chip and growth stocks of U.S.-domiciled companies. With a significant difference in GDP growth between emerging and developed economies, it’s important to look at investing in companies that provide global growth exposure.

Investing outside the United States might sound risky. This is particularly true in times of heightened geopolitical tensions. However, investors can consider some exposure to global blue-chip stocks listed in the U.S. exchanges.

The focus of this column is on fundamentally strong global blue-chip stocks trading at a valuation gap. The downside in these stocks seems capped, and the upside potential is significant.

Let’s discuss the reasons making these stories worth considering for the long term.

Li Auto (LI)

BYD Company (OTCMKTS:BYDDF) is an obvious choice if we look at EV companies from China. However, other than BYD, if there is a potential value creator, it’s Li Auto (NASDAQ:LI). The company is among the blue-chip names from China that I would buy and hold until 2030.

It’s worth noting that the turbulence in Chinese equity markets has translated into attractive valuations for LI stock. The stock trades at an attractive forward price-earnings ratio of 29.6. That seems like a good accumulation opportunity, with the company continuing to deliver blockbuster numbers.

To put things into perspective, Li Auto delivered 376,030 vehicles last year, up 182.2% year-over-year (YoY). For the current year, the company set an ambitious target of 800,000 annual deliveries. That will translate into robust revenue and cash flow growth.

I believe the target is achievable with Li Auto pursuing aggressive retail expansion within China. Further, the mass deliveries of Li MEGA are due in March. Potential international expansion will also support deliveries growth beyond this year.

HDFC Bank (HDB)

The banking sector is the backbone of economic growth in any country. With India likely to be among the fastest-growing economies in the next 10 years, I am bullish on HDFC Bank (NYSE:HDB) creating value.

The stock of one of the largest Indian banks has underperformed with negative returns of 22% in the last 12 months. At a forward price-earnings ratio of 15.7, the stock is worth accumulating and provides a dividend yield of 1.31%.

Among the positives, HDFC reported a low gross non-performing asset of 1.26% in Q3 of its 2024 fiscal year. Further, the bank has a healthy capital adequacy ratio of 18.4%. I also like the fact that HDFC has been aggressive in terms of semi-urban and rural banking expansion.

With interest rates likely to have peaked, I believe credit growth will accelerate in the next few years. HDFC Bank is well positioned to benefit, and the stock might be on the verge of a strong breakout on the upside.

Vale (VALE)

Vale (NYSE:VALE) is another quality blue-chip stock that trades at a valuation gap. At a forward price-earnings ratio of 5.06, VALE stock looks poised to double within the next 24 months. Further, the stock offers a dividend yield of 7.5%.

I must add at the onset that I am bullish on commodities for the second half of 2024. With potential expansionary monetary policies, industrial commodities are likely to surge higher. That will benefit Vale with the iron ore segment being the cash flow machine.

It’s also worth noting that VALE is focused on energy transition metals. That includes the likes of copper and nickel. With the company creating a diversified portfolio, there is visibility for long-term value creation.

From a financial perspective, Vale reported adjusted EBITDA of $4.5 billion for Q3 2023. Even with weak commodity prices, the company has an annual EBITDA potential of $18 billion. Internal cash flows are, therefore, likely to be sufficient even if investments are aggressive over the next few years. That will ensure a strong balance sheet.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.