As the hub of financialization, the US stock market has by far the highest price to earnings (P/E) ratio at 25.21. For comparison, Germany has 19.88, Japan 16.15, while China has a relatively low P/E of 10.67.
At that level, for every current stock price (P), investors pay 10.67 on every dollar the company earns (E). Although this may signal that a company is overvalued or undervalued, if the P/E is higher or lower respectively, it may also be the case that a company with a high P/E is fairly priced because of its potential growth.
Likewise, if a company’s P/E is lower against its peers, and its business model is going strong, a lower P/E would be the preferred choice for its stock exposure. After the reciprocal tariffs debacle under President Trump, a recent Chief Executive survey found that 62% of CEOs expect recession in H2 2025. That’s because tariffs greatly disrupt existing input/output calculations for businesses, which is additionally exacerbated by the uncertainty of Trump’s tariffs (will they be canceled, paused or elevated).
In this light, investors should consider these international stocks, available as American Depositary Receipts (ADRs).
1. Toyota Motor Corporation – ADR
After a steep drop in early April to $158, Toyota Motor Corporation ADR (NYSE:TM) stock already rallied slightly above the pre-drop level, now priced at $194 per share. Over the last 52 weeks, the average price of TM shares is holding at $187.19 with the highest price point of $235.68 per share.
Contributing to the recent TM rally, the company’s Chairman Akio Toyoda announced a plan to buyout Toyota Industries (OTC:TYIDF) Corp. for $42 billion. As of end-April, Toyota’s P/E is 7.28.
Over a one-year period, Toyota stock has gone down nearly 15%, reflecting the year-over-year decline in 2024 net income by 12.51% to $24.2 billion. However, this only points to the auto industry’s cyclical nature, having had a 20% net income increase from 2021 to 2022.
In this cycle, Toyota made great gains with its hybrid offering. As of the latest report for Toyota and Lexus (owned by Toyota) sales in Europe, the company increased plug-in hybrid sales 155% year-over-year. And as Tesla (NASDAQ:TSLA) receives street-level assault and toxic branding, Toyota’s battery EVs sold 30% more in the same period.
As a brand synonymous with reliability, and as the US leverages influence against Chinese products, Japan’s Toyota will likely gain further ground in all major markets except for China.
Against the current price of $194, the average TM price target is $217 per share, according to WSJ forecasting data. The bottom estimate is $165.94 while the top is $243.19. If the Trump admin stirs the market again, investors should take these target ranges into account.
2. Ambev S.A. – ADR
Headquartered in Brazil, Ambev SA ADR (NYSE:ABEV) offers a wide range of premium and mainstream alcoholic and nonalcoholic beverages. The company is a subsidiary of Interbrew International B.V., under Anheuser-Busch InBev (EBR:ABI), serving as the largest brewer for Latin America and the Caribbean.
Year-to-date, ABEV stock is up 38%, currently priced at $2.53 per share. Over the last 52 weeks, the average ABEV price is $2.18, with its highest point of $2.56 per share. As of end-April, Ambev’s P/E ratio is 14.12.
While beer consumption has continued to decline in the US, hitting a 40-year low in 2024, Latin America continues to be a beer consumption hotspot. Ambev S.A. reflects this by increasing its revenue during 2024 by 15.49% to $4.6 billion, following prior years’ revenue upticks as well.
Moreover, against uncertain macro conditions, ABEV is a defensive stock. This means that the company will continue to sell goods regardless of economic conditions. As such, Ambev can afford to pay a relatively high annual dividend yield of 5.25%.
Against the current price of $2.53, the average ABEV price target is $2.98. The top is $5 while the bottom forecast is $1.90 per share.
3. NXP Semiconductors N.V.
Following the EU’s announcement to ReArm Europe with an 800 billion euro package, Dutch NXP Semiconductors NV (NASDAQ:NXPI) is sure to partake in that growth. The company has many ties within the European aerospace and defence sector as a provider of semiconductors in defense radar and IFF systems.
NXP is also a part of the US military industrial complex. In January, American Honeywell (NASDAQ:HON) expanded partnership with NXP to advance autonomous flight capabilities, built on NXP’s high-performing computing architecture for AI-powered avionics.
Year-to-date, NXPI stock is down 12%, presently priced at $181 per share. Over the last 52 weeks, the average NXPI price was $232.99, with a high point of $296 per share. The company’s P/E ratio is now 14.83.
Per WSJ forecasting, the average NXPI price target is significantly above the current price, at $236.79 per share. The bottom forecast is close to the present price level, at $170, while the top price target for NXPI stock is estimated at $275 per share.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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