As of the most recent estimates, there are approximately 41,000 to 45,000 publicly listed companies globally. It stands to reason that some of our free-site writers have been buying shares outside of the UK for their portfolios, too…
AngloGold Ashanti
What it does: AngloGold Ashanti is a global gold mining company with projects in nine countries, across four continents.
By Andrew Mackie. When it was announced at the back end of last year that AngloGold Ashanti (NYSE: AU) had agreed to buy UK-listed Centamin, then I began undertaking research into the miner to see if it was a good fit for my Stocks and Shares portfolio.
One fact that immediately struck me was its low valuation compared to many of its American peers. In 2023, it restructured the business moving its primary listing from South Africa to the New York Stock Exchange. Over time, it hopes this move will result in a fundamental revaluation.
I believe that the acquisition of the Sukari gold mine, a tier one asset, could very well turn out to be a pivotal strategic move. As gold prices continue to edge closer to $3,000, its increased gold production and expected fall in all-in sustaining cost (AISC) will result in significant margin improvement.
Cost inflation remains one of the biggest risks for the industry as a whole but is particularly acute at AngloGold. One of its mines in Brazil was recently placed on “care and maintenance” given that its AISC was well above the price of gold.
Nevertheless, with government deficit spiralling out of control in the US and a new Administration eager to see it cut, I believe gold prices will continue to rise. Trading at a forward P/E of just over seven, I decided to add some of its shares to my portfolio in early 2025.
Andrew Mackie owns shares in AngloGold Ashanti.
Nu Holdings
What it does: Nu Holdings is the parent company of Nubank, the leading digital bank in Latin America.
By Ben McPoland. I recently bought more shares in Nu Holdings (NYSE: NU). The branchless bank continues to grow like a weed across Latin America. It now has over 100m customers in Brazil, a staggering 57% of the adult population!
However, it’s also growing rapidly in Mexico, where it recently surpassed 10m customers (around 12% of the adult population). Management believes the long-term opportunity in Mexico is massive, while its newest market is Colombia.
Nubank is offering various services and credit to the continent’s massive underbanked population via their smartphones. While that’s driving enormous growth, it also exposes the firm to a rise in non-performing loans. This is certainly worth bearing in mind.
It is perhaps such risks that explain the relatively low valuation here. The stock is trading at just 16 times next year’s forecast earnings. For perhaps the fastest-growing financial company on earth, that looks like a bargain.
Interestingly, Nu Holdings is considering moving its legal domicile to the UK ahead of a global expansion that may include the US within the next couple of years.
Ben McPoland owns shares in Nu Holdings.
Ørsted
What it does: Danish energy supplier and largest developer of offshore wind power by number of built offshore wind farms.
By Mark Hartley. I bought shares in Ørsted (CPSE:ORSTED) because I have a keen interest in renewable energy. The company has suffered significant challenges in the past five years, leading to a 55% drop in value. The cancellation of its Ocean Wind 1 and 2 projects off New Jersey led to $5.6bn in loss in 2023. As a result, earnings per share fell to a loss of 50 DKK (£6.28) that year, forcing it to cancel all dividends.
In Q3 2024, earnings recovered to 5bn DKK (£570m), prompting analysts to estimate a final year EPS of 22 DKK (£2.49). But renewable energy remains a high-risk industry, prone to losses from unpredictable weather events and regulatory changes.
Despite its risks, I think Ørsted stands a good chance of turning a profit while helping drive cleaner energy production. The average 12-month price target of 420 DKK represents growth of 34% from today’s price.
Mark David Hartley owns shares in Ørsted.
Palantir Technologies
What it does: Palantir’s software specialises in big data analytics, with both government and corporate clients.
By Muhammad Cheema. Palantir (NASDAQ:PLTR) has been leveraging its expertise in artificial intelligence (AI) to generate strong growth.
Among its corporate clients, its Artificial Intelligence Platform (AIP) has been a big hit. AIP allows users to integrate AI models directly into their platforms, taking care of tasks employees usually do.
As a result, the company has seen its revenue from US commercial customers rise by 54% in its latest quarterly results year on year. Its customer count also grew by 39%, and in the last quarter alone the company closed 104 deals worth over $1m each.
My biggest concern with the company is its lofty valuation. With a price-to-sale (P/S) ratio of 72, any weakness it displays could send its share price off a cliff. For example, more companies are entering the AI space. Therefore, it’s not highly unlikely a larger competitor in the space will encroach on its business.
However, as enthusiasm for Palantir’s software is increasing, I remain convinced it will continue its strong growth.
Muhammad Cheema owns shares in Palantir Technologies.
This post was originally published on Motley Fool
