Several factors have shaped the global market scenario in 2019. These include the trade tussle between the United States and China, concerns surrounding Brexit, lower manufacturing activity in Europe, headwinds in Hong Kong and other political factors, which raised fears of a global slowdown. Per the World Bank’s report published in June, global economic growth is projected to drop to 2.6% in 2019 on account of lower-than-anticipated business investments and trades at the beginning of the year.

Despite such geopolitical issues, the U.S. market managed to scale new highs with the S&P 500 Index rallying as much as 30% this year. A rosy economic backdrop — marked by a robust labor market and favorable consumer spending — seems to have boosted investors’ spirits. Upbeat reports on domestic manufacturing and home building also infused optimism. To top it, Federal Reserve’s three back-to-back rate cuts this year and relatively eased concerns on trade matters with China made investors optimistic about further growth.

In fact, the international market is also seeing improvements, with economic growth gaining traction across several advanced nations. Moreover, modest recovery in emerging markets and developing economies is expected to propel a gradual advancement in global economic growth rate, per the World Bank. Notably, reacceleration of global growth along with stimulative measures adopted by various central banks may help international stocks to outperform the U.S. market in 2020, as cited by industry experts.

Incidentally, there are several foreign stocks that crushed the U.S. market in 2019 and are well placed for future growth. Investors can play safe and diversify their portfolio by adding such solid foreign stocks.

Choosing the Right Gems

With the help of the Zacks Stock Screener, we have identified international companies that have crushed the U.S. market in 2019. These foreign stocks, with a market capitalization of more than $5 billion and a Zacks Rank #1 (Strong Buy) or #2 (Buy), are set to help you globalize your portfolio. With the help of our Style Score System, we have further narrowed down the list to ensure that the stocks have a VGM Score of A or B.

Book Your Returns With These Foreign Stocks

Based in Tokyo, Japan, Sony Corporation (SNE - Free Report) designs, manufactures and sells several electronic equipment and instruments. The company’s product roster comprises audio and video equipment, televisions, displays, semiconductors, gaming consoles, computers and computer peripherals among other products. This Zacks Rank #1 stock, with long-term EPS growth rate of 7.7%, has rallied 40.4% year to date. Further, the company, with a market cap of $84.8 billion, boasts a VGM Score of A.

Investors can also count on Vipshop Holdings Limited (VIPS - Free Report) , which has seen its shares more than double so far this year. The Zacks Rank #2 company has a market cap of $9.8 billion. Notably, Vipshop Holdings is an online discount retailer, which is headquartered in Guangzhou, the People's Republic of China. It has a VGM Score of B. The company offers branded apparel, fashion goods, cosmetics, home goods and other lifestyle products through its website.

BRF S.A. (BRFS - Free Report) is another solid bet. This Brazil-based company is focused on the production and sale of poultry, pork, beef cuts, milk, dairy products, and processed food products. The company currently carries a Zacks Rank #1 and has a VGM Score of A. With a market cap of $6.9 billion, BRF S.A.’s shares have surged 50% on a year-to-date basis.