The head HuInternal group (NASDAQ: HHR), ChipMOS technologies (NASDAQ: IMOS) and Ternium (NYSE: TX) are the top performing American Depositary Receipts. These are companies based outside of the United States, but US-based banks issue certificates that represent shares in the companies.
American Depository Receipts allow domestic investors international diversification and exposure to companies to which they would otherwise not have access.
Approximately 75% of ADRs trade in the US in order to gain exposure to US markets and to create liquidity for the stocks and their investors. The ADRs and their dividend payments are quoted in dollars.
The largest ADRs available to US investors include Roche Holding, Deutsche Telekom, and BASF.
The HeadHunter group operates an online recruiting platform in Russia and other Eastern European countries. The company has a market cap of $ 2.26 billion, which is at the low end of the mid-cap range.
The stock, which went public in May 2019, rebounded to an all-time high of $ 43.67 on July 2, but encountered resistance between $ 43 and $ 44 on Tuesday. That is at the upper end of a trading range that was set in late April. The stock is up 4.51% this week.
Wednesday’s price move broke that resistance and advanced 6.52%. It’s currently for sale, but if the rally continues, the stock could be extended pretty quickly.
Profits and sales declined in 2020 but are on the upswing. Analysts expect earnings of $ 1.04 per share this year, an increase of 51%. Over the next year, growth is up another 41% to $ 1.47.
The Cyprus-based company reports its profits in late August. It has exceeded estimates over the past three quarters.
Institutional ownership remains strong with 29% of shares held by mutual funds. The number of fund owners grew from 128 to 130 in the last quarter. Several hedge funds also recently added to their positions.
For three of the past four weeks, up trade volume has been higher than normal, a good indication of institutional buying.
The story goes on
3 foreign stocks traded on US exchanges that remain in the buy range
Taiwan ChipMOS technologies offers test and assembly services for devices used in flat panel displays.
The company’s sales have increased over the past three years.
One reason for its growth is that it offers a higher level of testing and assembly services than its competitors.
Its chip packaging and testing operations are based in Taiwan, but the company serves a global customer base including leading fabless semiconductor companies, integrated device manufacturers, and independent semiconductor foundries.
Revenue rose double digits for the past eight quarters, rising from $ 18.48 billion in 2018 to $ 23.01 billion in 2020. Income declined in 2020 from $ 2.35 in 2019 back to $ 2.29 per share. However, analysts see a 75% increase this year. to $ 4 per share.
ChipMOS is a small-cap company with a market capitalization of nearly $ 1.32 billion. Hence, you wouldn’t expect to see hundreds of mutual funds owning them. In fact, that number was 15 at the end of the previous quarter, up from 16 in the previous quarter.
The stock corrected below its April 9 high of $ 36.31 and is at its best level since 2004. It hit that point in Wednesday’s session and rose to $ 36.48, twice the average trading volume.
With the price movement on Wednesday, the share is currently in the buy range. Investors should exercise caution with a thinly traded, relatively unknown stock like this one, and be aware that lack of liquidity can be a challenge.
3 foreign stocks traded on US exchanges that remain in the buy range
Luxembourg steel processor Ternium exceeded a double floor base above a buy point of $ 39.60 on Wednesday.
The company, which went public in 2006, has a market capitalization of $ 8.1 billion and 49 million shares outstanding. Therefore, it is a more attractive candidate for mutual fund owners than smaller companies. The number of fund owners was 170 last quarter.
Sales were already declining before the pandemic, and this trend continued into 2020. However, revenue growth returned 15% and 43% respectively in the last two quarters.
Profits have also been spotty, but that seems to be turning, too. Growth accelerated over the past two quarters, with the company reporting earnings of $ 3.07 per share in March, following a loss in the year-ago quarter.
This share is still in the buy range. Investors should always be careful chasing a stock once it is extended past a proper buy point, but Ternium closed at $ 41.32 on Wednesday, up 5.01%.
This took the stock up 4.34% from its purchase point. If you buy a stock once it’s about 5% above its buy point, you run the risk of being shaken out in a normal pullback or becoming impatient as your stock trends lower than where you bought it.
3 foreign stocks traded on US exchanges that remain in the buy range
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source https://thedailytradingnews.com/3-overseas-stocks-traded-on-u-s-exchanges-that-remain-in-buy-range/
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