These 3 International Stocks Could Be the Best-Performing Stocks In 2026

Investors in U.S. stocks have broadly outperformed the rest of the world for more than a decade straight. That is, until 2025 when international stocks really started picking up steam.

Some of the heightened returns seen from international stocks came from currency fluctuations, with the U.S. dollar weakening relative to a basket of global currencies. While I don’t anticipate that U.S. dollar weakness will continue forever (there’s a reason why the U.S. markets are considered the gold standard globally), it is true that the geopolitical environment has changed drastically in recent years. As such, investors who have been more broadly diversified with their holdings (from a geographic perspective) have outperformed.

While I don’t think this is a trend that can continue forever, I do foresee a period of time (maybe a few years or so) in which international diversification can become the hedge it once was. For those looking to capitalize on a continuation of this rotation, here are three global players I think could be worth adding right now.

Restaurant Brands (QSR)

In the world of quick service restaurants (a fancy way of saying fast food), Restaurant Brands (NYSE:QSR) is a stock some investors may not have heard of. This company was formed out of a merger between Tim Horton’s and Burger King roughly a decade ago, and has since included acquisitions of Popeye’s and Firehouse Subs, among other banners.

The company’s resilient global franchise model and accelerating operational momentum hasn’t yet translated into the kinds of returns bulls like myself have been hoping for. In fact, recent quarters have shown slight weakness, which I do expect to revert at some point in the future.

My base case around Restaurant Brands continues to surround the idea that trade-down in the dining away from home category will continue. Those looking to eat out may opt for lower-cost options, given inflationary pressures, driving higher foot traffic (and margins) over time, given the company’s volume-oriented business model.

And while the company delivered forest year-over-year revenue and earnings growth (beating estimates), 5.3% same-store sales growth over the company’s total footprint hasn’t been enough to deter the naysayers. I think that trend could reverse, if we do see real economic weakness take hold at some point. Thus, this is a defensive growth stock to consider trading at a discount to its historical levels.

Alibaba (BABA)

Chinese e-commerce giant Alibaba (NYSE:BABA) is a premier global growth stock with explosive potential driven not only by its core business (similar to Amazon), but its artificial intelligence ambitions. Similar to Amazon, Alibaba is among the largest global cloud players, utilizing AI to enhance its growth and expand internationally. This international growth has led to solid results, and a surging stock price of late.

Of course, it’s worth highlighting the fact that this is indeed a Chinese stock, and owning Chinese stocks isn’t the same as owning U.S. equities or those in other developed nations. There are specific risks there investors are taking on with owning a piece of a Cayman Islands company tied to Alibaba.

That said, the company’s solid revenue growth of 8% year-over-year this past quarter (impressive for a company of its size) driven by more than 20% growth in its international e-commerce business (among the highest margin segments Alibaba has to offer) is notable. With free cash flow margins hitting 20% due to cost discipline in recent quarters, it will be interesting to see what the company can do moving forward, if AI becomes the growth driver many expect.

MercadoLibre (MELI)

Last on this list is another global e-commerce player, this time from Latin and South America. MercadoLibre (NASDAQ:MELI) is the continent’s e-commerce and fintech powerhouse, providing exposure to roughly $1 trillion in GDP in nations many investors have little to no portfolio exposure to.

With solid 35% year-over-year growth in the company’s e-commerce business driven by 40% growth in its Mercado Pago business, this is a top stock I think investors won’t want to wait to buy on dips.

Now trading at around $2,000 per share, MercadoLibre is also a company I’ve long thought is overdue for a stock split. Should we see such a split materialize in 2026 or in the coming years, I think that’s yet another driver that could support capital appreciation upside. Even without such a catalyst, I think the company’s underlying fundamentals should provide plenty of support for upside, if institutional buying activity continues to support companies in higher-growth geographies.

With world-class margins of around 12% in its core business and more than $5 billion of free cash flow generation each year, MercadoLibre is an easy pick in my books.