Investors generally should consider market ideas with which they’re most familiar. That’s a relatively obvious point. With that in mind, most Americans should focus domestically for a host of reasons, not just familiarity. However, going abroad has its benefits, which leads us to today’s topic: hidden gems among emerging market stocks.

Again, the meat of one’s portfolio should theoretically be U.S.-based. We live here, work here and we know the ins and outs. That said, one of the key benefits of emerging market stocks is diversification. Even if your portfolio is geared entirely toward growth-focused ideas, it pays to diversify this growth. As a rule of thumb, you don’t want all your eggs in one basket.

However, the real kicker for targeting international markets is the underlying growth opportunity. Even with the post-pandemic pressures, certain regions are expanding at a faster pace than their mature counterparts. On that note, below are compelling emerging market stocks to consider.

Cemex (CX)

Based in Mexico, Cemex (NYSE:CX) falls under the building materials industry. Per its public profile, the company produces, markets, distributes and sells cement, ready-mix concrete and other aggregate-based solutions for the construction services sector. Mexico happens to be one of the top emerging nations and has been growing at a relatively high clip despite difficult global challenges.

As the world continues to recover from Covid-19, I expect Mexico to continue to lead in terms of growth magnitude. Admittedly, the recent financials have been lacking. Between the second quarter of 2023 to Q4, the company produced an earnings loss of one-cent per share. However, earnings per share popped up to 17 cents in Q1 2024, beating the analysts’ estimate of 13 cents.

Possibly, Mexico is back on the rise. If so, CX stock is intriguing. Right now, shares trade at 0.51X trailing-year sales. However, the average print between Q1 2023 and Q1 2024 was 0.63X.

Even better, experts anticipate that Cemex’s top line could reach $18.03 billion, up 3.5% from the prior year. That makes CX one of the emerging market stocks to consider.

Himax Technologies (HIMX)

Interestingly, those who are interested in emerging market stocks but not in China have some intriguing options to consider. One of them is right next door in Taiwan and that brings us to Himax Technologies (NASDAQ:HIMX). Operating in the broader semiconductor space, Himax is a fabless enterprise specializing in display imaging processing technologies. As long as televisions, monitors, laptops and other interactive devices are relevant, HIMX stock should be on your radar.

After starting the year off on a dour note, Himax has started to turn the ship around. Since the start of the year, HIMX stock gained 23% of its equity value. Further, between Q3 and Q1, the company posted an average EPS of nearly nine cents. That’s above the analysts’ consensus view of seven cents. The earnings surprise during this period came out to 36.07%.

Now, where Himax gets a bit tricky is in the valuation department. In the past year, HIMX traded at 1.05X trailing-year sales. Right now, the statistic is up at 1.44X. Conspicuously, the latest quarterly sales growth rate (year-over-year) sits at 15% below parity.

Fiscal 2024 admittedly may turn out to be rough. However, a slow recovery may take place in fiscal 2025, with a sales target of $1 billion. For the patient speculator, HIMX could be one of the emerging market stocks to buy.

Grab (GRAB)

Calling Singapore home, Grab (NASDAQ:GRAB) represents one of the most exciting ideas among emerging market stocks. Technically speaking, Grab falls under the application software realm. Per its corporate profile, it offers a digital platform – essentially a super app – that covers a range of services, including mobility and digital financial services. It targets burgeoning markets such as Cambodia, Indonesia and Malaysia.

Enticingly, the Southeast Asian internet economy could become a trillion-dollar ecosystem. That’s why it’s essential for Grab to, well, grab as much market share in this space as possible. In terms of the bottom line, it hasn’t been profitable. In the trailing 12 months (TTM), it incurred a net loss of $294 million.

However, the top line saw a print of $2.49 billion. Further, the most recent quarterly sales growth rate stands at 24.4%. What’s really enticing here is the valuation. Currently, GRAB stock trades at 5.57X trailing-year sales. However, in the past year, the metric rose to 6.73X. There’s room to run.

Analysts believe fiscal 2024 sales could pop 17.8% to $2.78 billion. GRAB is easily one of the emerging market stocks to consider.

Sea (SE)

Another Singapore-based enterprise, Sea (NYSE:SE) falls under the consumer cylical sector, specifically internet retail. Along with its subsidiaries, Sea engages in three core service/product areas: digital entertainment, e-commerce and digital financial services or fintech (financial technology). Because of the aforementioned burgeoning Southeast Asian market, Sea could tap into a viable ecosystem.

Granted, there could be some competitive overlap with Grab that needs monitoring. Nevertheless, Sea also features distinct advantages in the internet content and e-commerce arenas. To be fair, the financial performances recently have been hit or miss. In the past four quarters, Sea’s average EPS landed at only 1.3 cents. That’s not great compared to the analysts’ expectations of 4.3 cents.

However, it’s important to consider the growth opportunity. In the TTM period, revenue hit $13.76 billion. What’s more, in the most recent quarter, the sales growth rate clocked in at 22.8%. That’s more like it.

For fiscal 2024, analysts anticipate that sales will rise to $15.41 billion. That’s up 17.9% from the previous year. Further, the high-side target calls for revenue of $16.79 billion. For speculators, it’s an enticing play for emerging market stocks.

MakeMyTrip (MMYT)

Based in India, MakeMyTrip (NASDAQ:MMYT) is potentially a high-risk, high-reward idea among emerging market stocks. In recent years, India has been flexing its economic muscle, rising up the GDP ranks. In so doing, one can expect its consumer cyclical sector to rise. Operating in the travel sectors sector, MakeMyTrip sells various travel products and services in India, along with other international markets.

It’s quite possible that the travel prioritization phenomenon that has buoyed the U.S. travel sector could impact India. Again, we’re talking about a rapidly growing economy. Thanks to the collective wealth creation, Indian consumers also want to see the world. What’s encouraging here is the financials. In the past four quarters, the company’s average EPS landed at 29 cents. That’s well above the average estimate of 16 cents.

It must be said that MMYT stock trades at a premium, specifically 13.41X trailing-year sales. In the past year, this metric sat at 7.09X. However, the most recent quarterly sales growth rate shot up to 36.6%.

For the current year, experts believe revenue could rise 25.7% to $983.61 million. Again, it’s an enticing candidate for emerging market stocks to buy.

MercadoLibre (MELI)

Headquartered in Montevideo, Uruguay, MercadoLibre (NASDAQ:MELI) also operates in the consumer cyclical space, specifically internet retail. According to its public profile, MercadoLibre operates its namesake online marketplace. This e-commerce platform enables businesses, merchants and individuals to list merchandise and conduct sales and purchases digitally. It’s potentially one of the transformative enterprises in the broader Latin American market.

Generally speaking, the financials have been robust. If you took away a bad miss in Q4, the results in the past four quarters would have been impressive. Unfortunately, there was a huge miss in Q4 so the average EPS during the aforementioned period was $5.59. That stands in sharp contrast to the expected print of $5.88.

MELI stock has incurred some choppy trading in the market subsequently. Still, this could open a discounted opportunity. Right now, shares trade at 5.18X trailing-year revenue. However, in the past year, the metric shot up to 5.71X.

There may be significant room to run, though, because analysts believe sales could hit $19.13 billion this year. If so, that would be up 32.2% from the prior year.

Nu (NU)

Based in Brazil, Nu (NYSE:NU) provides a digital banking platform in Mexico, Colombia, the Cayman Islands, Argentina, Uruguay and its home market. It also serves the U.S. and Germany. According to the corporate profile, Nu offers various services, including credit and prepaid payment cards. Further, it promotes mobile payment solutions. Fundamentally, as digitalization brings connectivity across the globe, Nu could be a top beneficiary.

It’s been delivering the goods recently. In the past four quarters, the company’s average EPS landed at 7.3 cents. That beats out the average analysts’ estimate of 6.5 cents. Further, the average earnings surprise came out to 13.55%. However, the real story here may be the growth narrative.

In the TTM period, revenue hit $4.27 billion. In the most recent quarter, the sales growth rate shot up to nearly 80%. What’s enticing is that the current multiple of 9.31X trailing-year sales isn’t that bad. In the past year, this metric stood at 8.94X.

Further, in fiscal 2024, sales could hit $11.74 billion, up 46.3%. In the following year, the top line could expand to $14.83 billion, another 26.3% gain. NU is easily one of the emerging market stocks to consider.

On the date of publication, Josh Enomoto did not have (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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.