Breakfast News: One Stock Outside the U.S. We Like
The U.S. stock market is the largest in the world and home to some of the most valuable and iconic companies. It’s also where we spend most of our time at The Motley Fool. Yet plenty of outstanding businesses list only on their home exchanges and rarely show up on the radar of investors in the U.S. They’re well within reach, though, and can be bought through over-the-counter (OTC) tickers or a broker’s global trading desk.
For this edition of Breakfast News, we asked analysts from the different countries where TMF operates to each pick one stock that isn’t listed on a U.S. exchange and tell us why they like it. Here’s what they said.
1. Fool U.S.: The Gatekeeper to Every Advanced Chip
Yasser El-Shimy
Lead on Global Partners
Every cutting-edge chip — AI graphics processing unit (GPU), high bandwidth memory (HBM) stack, smartphone central processing unit (CPU) — starts with a photomask, made possible by ASML’s (ASML -6.55%) EUV technology. Almost nobody can verify that the mask is defect-free except Lasertec(LSRCY -16.50%).
The Japanese firm commands over 90% of the actinic EUV mask inspection market, a moat built by physics, not marketing. Its fiscal year 2026 sales dipped 8.3% to 230.5 billion yen as last year’s order lull worked through. Orders, however, snapped back 125.7% to 237.5 billion yen, and management now guides FY2027 sales up 25.8%, with a 45.7% operating margin, debt-free.
This business is immensely profitable, as you would expect from a monopoly. Yet most investors may never have heard of this company: it is foreign-domiciled, yen-denominated, traded via American Depository Receipts (ADRs), and reliant on concentrated customers in Taiwan, Japan, and South Korea. Widening the lens beyond U.S. borders is how you own chokepoints like this one before Wall Street catches on.
Team Rule Breakers has a 5-year price prediction of $90, implying an 11.6% annualized return from today’s price of around $52.
2. Fool Canada: A Canadian Retailer With a Long U.S. Runway
Nick Sciple
Team Rule Breakers
Aritzia (ATZAF -0.43%) is a Vancouver-based design house that sells women’s apparel under more than a dozen of its own labels, only through its own boutiques, website, and app. Its shares trade in Toronto, which may be one reason many U.S. investors haven’t taken a close look. They should.
In the quarter Aritzia reported Oct. 8, revenue grew 44% to $1.17 billion Canadian dollars, and comparable sales grew 35%. On the earnings call, CEO Jennifer Wong said that growth came primarily from traffic, not higher prices. U.S. revenue grew 60% and now makes up two-thirds of the company’s revenue.
What excites me is the runway for growth. Aritzia expects 87 U.S. boutiques by the end of this fiscal year, on its way to 160 by fiscal 2032, with a long-term goal of 200 locations. I think that understates the U.S. opportunity, and European expansion is inevitable in the long run.
Aritzia is simply the best-executing retailer in the world right now. My 5-year price prediction is CA$246. That assumes Aritzia opens 12 to 14 U.S. boutiques a year, each generating about US$10 million in annual revenue as management models, and that comparable sales grow 6% a year, well below every pre-pandemic year in the company’s history. It also holds today’s margin and valuation multiple steady. Any outperformance on those figures is upside.
3. Fool Australia: Arming Australia’s Electrification Boom
Chris Copley
Motley Fool Australia
IPD Group (IPG -0.73%) is an electrical products distributor — the quiet middleman supplying the switchboards, power-distribution gear, electric vehicle (EV) chargers and industrial cabling that the energy transition actually runs on. It isn’t a household name, which is part of why the market keeps underrating it.
In its FY2026 results, revenue grew nearly 17% to $414.3 million, and underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 19.4% to $55.4 million, both above the top of guidance. Crucially, organic revenue still grew 9.7%, while data center revenue jumped 27% to $71.5 million. Management has proved to be excellent capital allocators and has made complementary acquisitions at sensible prices, driving very attractive shareholder value over several years.
IPD is positioned well for the massive and growing Australian data center pipeline through 2035. But this is not just a data center story. The broader electrification of everything, and a national EV-charging rollout through its ABB partnership, are other structural tailwinds that should support growth in the years to come.
IPD is quietly becoming a key distributor of Australian electrification. My 5-year price prediction is around A$10. That assumes underlying earnings per share compounds somewhere in the low double-digit rates — below IPD’s recent mid-to-high-teens pace — both from organic growth and acquisition contributions, and that the market keeps paying today’s roughly 18 times earnings. A very healthy dividend yield along the way is upside on top of that.
The Bottom Line
If any of the companies above catch your eye, check whether your broker offers it as an ADR or lets you trade directly on the company’s home exchange, and what fees apply.
Before you invest in a foreign company, there are some risks worth knowing. Unfavorable currency swings can hurt returns, even when the business itself performs well. Accounting standards, disclosure rules, and political risk also differ from one market to the next. Dividends are often subject to foreign withholding tax, although U.S. investors can usually recover some or all of it through foreign tax credits.
If you want to explore more international stocks, Fool analyst Yasser El-Shimy runs Global Partners, a service that looks all over the world for the best growth opportunities. Its goal is to deliver 6x returns over 10 years, and it’s available to members of Epic Plus and above.
Today’s Question!
Do you have a favorite non-U.S. stock? Which one is it and why?
Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.