The Canadian stock market offers investors with a plethora of companies that could do well in your portfolio. However, despite that, I believe investors should try to hold a good number of international stocks in their portfolios. This is because investing in foreign companies can help give your portfolio stability, should your home country (in our case, Canada) encounter a period of economic uncertainty. In this article, I’ll discuss three great foreign companies to invest in right now.
Invest in this interesting Singaporean company
Sea Limited (NYSE:SE) is the first foreign stock that I think Canadians should consider buying today. For those that aren’t familiar, this company operates three distinct business segments. That includes Garena, Shopee, and SeaMoney, which represent Sea Limited’s e-sports, e-commerce, and digital banking services, respectively.
Of those three business segments, Shopee is by far the most impressive. In the first quarter (Q1) of 2023, Sea Limited reported US$3.0 billion in quarterly revenue. Of that, US$2.1 billion can be attributed to revenue generated by Shopee. As the global e-commerce industry continues to grow, and as Shopee continues to expand its service areas, I believe Sea Limited’s revenue could soar.
One of the biggest tech stocks in the world
Moving to the United States to find a great foreign company, I think investors should consider buying shares in Microsoft (NASDAQ:MSFT). This is a company that needs very little introduction. Investors should know it for the plethora of products and services that Microsoft offers. This includes the Microsoft Windows operating system, Microsoft Office products, Azure, Xbox, and many more.
In Q4 2023, Microsoft reported US$13.6 billion in revenue. That was driven, in large part, by a 7% growth in Microsoft’s Cloud services. Investors should also note that Microsoft’s operating income was reported to be US$24.3 billion in Q4 2023. That means this company is very profitable and should be able to withstand longer periods of economic uncertainty, should they arise.
This South American company is very impressive
Finally, I believe MercadoLibre (NASDAQ:MELI) is another foreign company that could do well in your portfolio. This is another stock that operates within the global e-commerce industry. Unlike other companies, however, MercadoLibre focuses specifically on the South American market. It should be noted that MercadoLibre operates three distinct business segments, all of which remain very impressive. This includes its marketplace, logistic services, and fintech.
All considered, MercadoLibre reported US3.4 billion in revenue last quarter. That represents a staggering increase of 57% year over year. Of that, MercadoLibre reported US$558 million in income. So, clearly, the company still has a lot of work to do with respect to becoming more profitable. However, it certainly seems to be on the right track.
Foolish takeaway
Although the Canadian stock market can offer you a number of outstanding businesses to invest in, I believe it’s important to diversify your portfolio. Sea Limited, Microsoft, and MercadoLibre are three outstanding companies with very bright futures. If you’re interested in tech stocks, then adding these three stocks to your portfolio could be a great play over the coming years.
