Best International Companies to Own in 2026: Global Giants Built for the Future
As investors, many of us naturally prefer companies we already know — usually those listed in our home country. This tendency, known as home bias, is common and understandable. But according to Morningstar, limiting yourself this way can mean missing out on powerful global opportunities .
Adding international stocks to your portfolio improves diversification and can protect your investments if your local currency weakens or your domestic market underperforms.
How Morningstar Selected These Companies
Morningstar didn’t choose these companies based on hype or short-term price movements. Instead, they focused on owning businesses, not just stocks.
Their selection criteria included:
• Wide economic moats (strong, durable competitive advantages)
• Predictable cash flows
• Efficient capital allocation
• Sustainable long-term growth
The idea of an economic moat was popularized by Warren Buffett, who believes the best companies are those that competitors struggle to copy over long periods.
Using this framework, Morningstar identified 37 high-quality companies outside the United States that are accessible to US investors.
Sector Highlights from the List
Some sectors stood out more than others:
• Industrials had the strongest representation
• Consumer defensive and healthcare followed closely
This tells us something important: companies that provide essential services, infrastructure, food, healthcare, and data tend to have stronger long-term staying power.
⚠️ Important note:
This list is not a “buy everything now” list. Even great companies can be poor investments if bought at the wrong price. The goal is to watch these stocks and wait for attractive entry points.
⭐ The 4 Undervalued Standouts (5-Star Rated)
As of December 10, 2025, Morningstar identified four companies on the list that are currently undervalued relative to their long-term potential.
Coloplast (Denmark)
A global leader in ostomy and continence care, Coloplast has built dominance through consistent innovation and user-friendly medical products.
• Strong margins due to efficient global production
• Growing presence in the US market
• Expansion into biologic wound care through its Kerecis acquisition
Despite competitive pressure in wound care, Coloplast’s innovation culture and niche leadership give it a durable edge.
RELX (UK)
RELX provides professional data, analytics, and decision-making tools across industries.
• Majority of revenue is subscription-based, meaning steady and recurring cash flow
• Strong digital focus with minimal reliance on print
• Known for disciplined cost control and consistent margin improvement
This is considered a low-uncertainty business, ideal for long-term investors seeking stability .
Thomson Reuters (Canada)
A powerhouse in legal, tax, accounting, and risk intelligence.
• Flagship platforms like Westlaw and UltraTax anchor its dominance
• Heavy investment in AI-driven tools
• Strong balance sheet after selling its stake in the London Stock Exchange Group
The company is targeting solid revenue growth, expanding margins, and at least $2 billion in free cash flow by 2026.
Yum China Holdings (China)
China’s largest restaurant chain, operating brands like KFC and Pizza Hut.
• Positioned to gain market share during economic slowdown
• Benefits from scale, pricing power, and supply-chain efficiency
• Long-term growth driven by urbanization, rising incomes, and changing family structures
Even in a challenging economy, Yum China is expanding aggressively and rewarding shareholders.
Key Takeaways for Investors
• Global diversification is no longer optional — it’s essential
• Focus on business quality, not short-term market noise
• Wide-moat companies tend to survive downturns and compound wealth over time
• Patience matters: wait for the right price, even for great companies
As investors, many of us naturally prefer companies we already know — usually those listed in our home country. This tendency, known as home bias, is common and understandable. But according to Morningstar, limiting yourself this way can mean missing out on powerful global opportunities .
Adding international stocks to your portfolio improves diversification and can protect your investments if your local currency weakens or your domestic market underperforms.
How Morningstar Selected These Companies
Morningstar didn’t choose these companies based on hype or short-term price movements. Instead, they focused on owning businesses, not just stocks.
Their selection criteria included:
• Wide economic moats (strong, durable competitive advantages)
• Predictable cash flows
• Efficient capital allocation
• Sustainable long-term growth
The idea of an economic moat was popularized by Warren Buffett, who believes the best companies are those that competitors struggle to copy over long periods.
Using this framework, Morningstar identified 37 high-quality companies outside the United States that are accessible to US investors.
Sector Highlights from the List
Some sectors stood out more than others:
• Industrials had the strongest representation
• Consumer defensive and healthcare followed closely
This tells us something important: companies that provide essential services, infrastructure, food, healthcare, and data tend to have stronger long-term staying power.
⚠️ Important note:
This list is not a “buy everything now” list. Even great companies can be poor investments if bought at the wrong price. The goal is to watch these stocks and wait for attractive entry points.
⭐ The 4 Undervalued Standouts (5-Star Rated)
As of December 10, 2025, Morningstar identified four companies on the list that are currently undervalued relative to their long-term potential.
Coloplast (Denmark)
A global leader in ostomy and continence care, Coloplast has built dominance through consistent innovation and user-friendly medical products.
• Strong margins due to efficient global production
• Growing presence in the US market
• Expansion into biologic wound care through its Kerecis acquisition
Despite competitive pressure in wound care, Coloplast’s innovation culture and niche leadership give it a durable edge.
RELX (UK)
RELX provides professional data, analytics, and decision-making tools across industries.
• Majority of revenue is subscription-based, meaning steady and recurring cash flow
• Strong digital focus with minimal reliance on print
• Known for disciplined cost control and consistent margin improvement
This is considered a low-uncertainty business, ideal for long-term investors seeking stability .
Thomson Reuters (Canada)
A powerhouse in legal, tax, accounting, and risk intelligence.
• Flagship platforms like Westlaw and UltraTax anchor its dominance
• Heavy investment in AI-driven tools
• Strong balance sheet after selling its stake in the London Stock Exchange Group
The company is targeting solid revenue growth, expanding margins, and at least $2 billion in free cash flow by 2026.
Yum China Holdings (China)
China’s largest restaurant chain, operating brands like KFC and Pizza Hut.
• Positioned to gain market share during economic slowdown
• Benefits from scale, pricing power, and supply-chain efficiency
• Long-term growth driven by urbanization, rising incomes, and changing family structures
Even in a challenging economy, Yum China is expanding aggressively and rewarding shareholders.
Key Takeaways for Investors
• Global diversification is no longer optional — it’s essential
• Focus on business quality, not short-term market noise
• Wide-moat companies tend to survive downturns and compound wealth over time
• Patience matters: wait for the right price, even for great companies