Emerging market stocks can be particularly difficult to understand. However, there is evidence that those who understand this part of the market can benefit. A 2023 study supported the view that stock markets in developed countries are more efficient than those in developing countries. This means that mispricing is more common in emerging market stocks than in developed market stocks like the US. Thus, emerging market investors may have a better chance of finding undervalued companies.
However, investing in emerging markets is difficult and risky. Blame it on cultural differences, differing financial reporting standards and geopolitical uncertainty. However, knowing the trends in emerging markets can give investors insight into what types of businesses are meeting demand overseas. A better understanding of global trends can help you make more informed investment decisions. Below, I’ll detail the three best-performing emerging market stocks for 2024. However, I will only focus on those that trade on US exchanges. A pattern emerges from these three titles: expanding financial services to developing countries.
Nu: Bringing Fintech to Brazil
No New York Stock Exchange: NOW is a Brazilian company that has provided investors with a return of more than 60% in 2024. The company operates digital banks in South America and Mexico. Unlike many traditional banks, Nu provides its services entirely online. It offers checking and savings accounts, as well as credit cards and other personal loans. He has also extended his services to the world of investments and insurance.
NU stock forecast today
$16.21
Growth potential 29.39%Moderate purchase
Based on ratings from 9 analysts
| High forecast | US$19.00 |
|---|---|
| Average forecast | $16.21 |
| Low forecast | US$13.50 |
NU Stock Forecast Details
From 2017 to the third quarter of 2024, Nu increased its customer base from 3 million to 110 million. For most of 2022 and 2023, the company’s revenue grew more than 100%. Growth has slowed in 2024 but is still very strong. In the first and second quarters the growth was more than 75%, and in the third quarter – 56%.
More than 50% of the adult population of Brazil are Nu customers. Almost all of Nu’s revenue comes from Brazil, and the company has significant opportunities to expand internationally. The company is currently focusing its international expansion efforts in Mexico and Colombia. Adoption was slow in these countries, with the company having just 9 million and 2 million customers in each, respectively. However, customer acquisition can begin in the same way as it did in Brazil.
Qufi: Chinese AI-powered lending stocks
Qufi Technology NASDAQ: QFIN is a stock that has exploded in 2024, providing investors with a total return of 135%. Much of this comes from the company’s solid 3.3% dividend yield. Qufi is a consumer finance firm that matches borrowers with financial institutions in China. It works with both consumers and small and medium-sized enterprises (SMEs).
Qifu Technology Stock Forecast Today
$37.50
-1.60% DisadvantageBuy
Based on 2 analysts’ estimates
| High forecast | $37.50 |
|---|---|
| Average forecast | $37.50 |
| Low forecast | $37.50 |
Qifu Technology Stock Forecast Details
In 2024, Qufi’s revenue growth was much slower than Nu’s, reaching 15% in the first quarter and falling to just 2% in the third quarter. However, the company increased its profits significantly. In the most recent quarter, adjusted net income increased 55% year over year.
Qufi is committed to using artificial intelligence for its credit scoring services. This helps create a flywheel effect because the more information its AI engine can accumulate, the better information it can offer. This is at least somewhat obvious when you look at a company’s delinquency rate or the percentage of loans with principal overdue. It gradually decreases, indicating that the firm’s ability to assess credit risk is improving. The company has an option to repurchase shares worth $450 million in 2025, which is about 8% of its current value.
Credicorp: Nu Peru
Credicorp New York Stock Exchange: BAP is a diversified Peruvian financial services firm. He is involved in banking, insurance, pensions, microfinance and investment advisory. In all of these areas, the firm has the first or second largest market share in Peru. In 2024, the stock provided a total return of 42%.
Credicorp stock forecast for today
$189.67
Growth potential 2.26%Hold
Based on ratings of 3 analysts
| High forecast | $219.00 |
|---|---|
| Average forecast | $189.67 |
| Low forecast | US$160.00 |
Credicorp stock forecast details
The company’s huge dividend yield of 17% played a big role in this. Credicorp’s revenue growth in 2024 wasn’t too impressive, but its net income growth is impressive. In the third quarter, the figure was up more than 21% from the previous year.
Credicorp sees plenty of opportunities for future growth in Peru, a country where digital finance is still in its early stages. For example, most of the population still uses cash. Credicorp can grow by helping people move to digital forms of payment. In contrast, more than 88% of transactions in Brazil are cashless. Credicorp can be seen as Peru’s answer to Nu in Brazil. But he may have more room to grow within his home country.
Before you think about NU, you should hear this.
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