American depositary receipts are trending as international markets outpace Wall Street.
“We find the S&P Global ADR index (SPADR) has broken out of an accumulation base, regained its 200 DMA and is showing the best relative strength versus the S&P 500 (SP500) (SPY) in over a year,” MKM chief market technician JC O’Hara wrote in a note.
O’Hara picked the top ADRs and “some international companies traded in the U.S.” based on charts:
- Communication Services (XLC): Orange (ORAN), Shaw Communications (SJR), Telefonica (TEF), SK Telecom (SKM), Baidu (BIDU), BCE (BCE), Criteo (CRTO)
- Consumer Discretionary (XLY): Pinduoduo (PDD), Ferrari (RACE), Sony (SONY)
- Consumer Staples (XLP): Haleon (HLN), Unilever (UL), Diageo (DEO)
- Energy (XLE): Eni (E), BP (BP), Shell (SHEL), Pembina Pipeline (PBA), Enbridge (ENB), Ecopetrol (EC), Canadian Natural Resources (CNQ)
- Financials (XLF): Deutsche Bank (DB), ING (ING), Banco Bilbao (BBVA), Prudential (PUK), KB Financial (KB), Banco Santander (SAN), UBS (UBS), Wayfair (WF), Aegon (AEG), LLoyds Banking Group (LYG), Sun Life Financial (SLF)
- Healthcare (XLV): Novo Nordisk (NVO), Sanofi (SNY), Smith & Nephew (SNN), Grifols (GRFS), Novartis (NVS), Qiagen (QGEN)
- Industrials (XLI): CNH Industrial (CNHI), Ryanair (RYAAY), ABB (ABB), Thomson Reuters (TRI)
- Technology (XLK): Opera (OPRA), ASML (ASML), SAP (SAP), ASE Technology (ASX), United Microelectronics (UMC), Open Text (OTEX), Taiwan Semiconductor (TSM)
- Materials (XLB): Posco (PKX), BHP Group (BHP), Kinross Gold (KGC), Barrick Gold (GOLD), Franco-Nevada (FNV)
- Real Estate (XLRE): FirstService (FSV)
- Utilities (XLU): National Grid (NGG)
See why SA contributor Rumak Research says the equity outlook for 2023 is gloomy at best.