Most investors believe that a diversified portfolio is simply buying an index fund or spreading their investments across different industries within the United States, which is only halfway true. True diversification, as described by one of the most successful macro investors in the world, Ray Dalio, means being invested across different countries and regions as well to be truly diversified.
Of course, there is an aspect of commodity and fixed income or currency exposure in Dalio’s view, though buying stocks in other countries inherently also brings some exposure to that country’s commodity and currency cyclicality.
Thus, today’s list is a helpful way for investors to tap into future upside and risk management opportunities.
Looking at Asia’s powerhouse (China), investors can pick one of that country’s biggest blue chip company Alibaba Group NYSE: BABA, or at some of Latin America’s biggest economies like Brazil through Nu Holdings Ltd. NYSE: NU and beyond into other countries within that region through a larger player like Mercado Libre Inc. NASDAQ: MELI to provide them with a successfully diversified portfolio.
Alibaba Doesn’t Care How Markets Feel
Alibaba Group Today
- 52-Week Range
- $79.21
▼
$148.43
- Dividend Yield
- 0.77%
- P/E Ratio
- 16.49
- Price Target
- $159.67
Ever since 2022, Alibaba stock has been one of the most “hated” names in the market, primarily because it is a Chinese company. For three years, the stock struggled to break its tight channel and see a price quoted above $80 per share, though management kept churning out stellar results.
Billions in stock buybacks, increased free cash flow, and expansion outside of the e-commerce platform most associate Alibaba with. Very few investors see Alibaba as a data center and cloud computing play, which it is growingly becoming across some of Asia’s fastest-growing economies.
This gives Alibaba access to consumer data, consumers who will inevitably start contributing to the region’s consumer discretionary sector, and data becomes gold at that point.
Being first in this race (before it even starts) gives Alibaba a strong positioning to keep expanding its financial profile, which may be why it delivered a net rally of 42.2% so far into 2025.
All of these factors also give Wall Street analysts the confidence to land on a consensus view of a Moderate Buy attached to a $159.7 per share valuation on Alibaba stock. This implies a potential upside of 32.5% from where it trades today, which would still be a fraction of the stock’s all-time high of just over $300 per share during the peak COVID-19 months.
Institutions Like Nu Holdings
NU Today
- 52-Week Range
- $9.01
▼
$16.15
- P/E Ratio
- 30.29
- Price Target
- $16.56
This stock represents a Brazilian finance platform that serves as a new type of bank, addressing the needs of a growing middle class that views traditional banking as inefficient for managing personal finances. Investors can view Nu Holdings as the Brazilian counterpart to Robinhood Markets Inc. NASDAQ: HOOD.
As Brazil’s economy continues to grow, making it one of the largest in the Latin American market, it’s no surprise that institutional buyers are seeking exposure to this story. As of mid-August 2025, those from State Street Corp decided to boost their holdings in Nu stock by 2.4%.
While this may not sound like much on a percentage basis, on dollar terms, State Street now holds a net position of $1.25 billion today, or 1.9% ownership in the entire company. After a year-to-date performance of 27.4%, Nu Holdings stock also gave Wall Street analysts some confidence to express their own opinions as well.
While the consensus view is of a Moderate Buy and a $15.8 per share price target, one Itau BBA Securities analyst placed an opinion above this consensus. This outlier calls for an Outperform rating and a valuation of $18 per share on Nu Holdings stock, implying an additional upside potential of 36% from today’s trading price.
Mercado Libre Is the Premium Latin American Stock
MercadoLibre Today
As of 08/22/2025 04:00 PM Eastern
- 52-Week Range
- $1,646.00
▼
$2,645.22
- P/E Ratio
- 60.03
- Price Target
- $2,817.22
Tied to the middle-class growth in the Latin American economic region, investors can look to Mercado Libre and how it provides a way to allocate this new disposable income. Investors can view Mercado Libre as the region’s version of Amazon.com Inc. NASDAQ: AMZN, offering a simpler way to understand the business model tailored to the region.
With all of the growth the region is expected to see, and how Mercado Libre’s market share will help it benefit in terms of financial expansion and valuations, it makes sense for Wall Street analysts to forecast $13.79 in earnings per share (EPS) for the fourth quarter of 2025, a net jump of 33.7% from today’s reported $10.31 in EPS.
All this growth and macro setup explain why the market is also willing to value Mercado Libre stock at a premium. By trading at a price-to-earnings (P/E) ratio of 57.8x today, Mercado Libre commands a premium above the rest of the internet commerce industry and its average P/E of 27.9x, meaning the market has high expectations for a bullish future.
Before you consider Alibaba Group, you’ll want to hear this.
MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Alibaba Group wasn’t on the list.
While Alibaba Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
We are about to experience the greatest A.I. boom in stock market history…
Thanks to a pivotal economic catalyst, specific tech stocks will skyrocket just like they did during the “dot com” boom in the 1990s.
That’s why, we’ve hand-selected 7 tiny tech disruptor stocks positioned to surge.
- The first pick is a tiny under-the-radar A.I. stock that’s trading for just $3.00. This company already has 98 registered patents for cutting-edge voice and sound recognition technology… And has lined up major partnerships with some of the biggest names in the auto, tech, and music industry… plus many more.
- The second pick presents an affordable avenue to bolster EVs and AI development…. Analysts are calling this stock a “buy” right now and predict a high price target of $19.20, substantially more than its current $6 trading price.
- Our final and favorite pick is generating a brand-new kind of AI. It’s believed this tech will be bigger than the current well-known leader in this industry… Analysts predict this innovative tech is gearing up to create a tidal wave of new wealth, fueling a $15.7 TRILLION market boom.
Right now, we’re staring down the barrel of a true once-in-a-lifetime moment. As an investment opportunity, this kind of breakthrough doesn’t come along every day.
And the window to get in on the ground-floor — maximizing profit potential from this expected market surge — is closing quickly…
Simply enter your email below to get the names and tickers of the 7 small stocks with potential to make investors very, very happy.
No responses yet