For several reasons, now is a great time to buy the best emerging market stocks. First, the current strength of the dollar increases the profits of foreign companies that sell their products, directly or indirectly, to American consumers and/or businesses.

Second, many companies in emerging markets are benefiting from the energy transition, the rise of electric vehicles and other strong trends underway.

It’s also worth noting that with improving supply chains and signs of slowing US inflation, hyperinflation is becoming less of a threat to top emerging market stocks. These stocks, like most stocks around the world, should benefit significantly from recently heightened investor optimism about the US economy.

Finally, I believe that a permanent and compelling feature of emerging market names is that it is much easier to find relatively unknown stocks, “diamonds in the rough” when you incorporate emerging markets into your research.

VALLEY	Valley	$14.17
BIDU	Baidu	$142.72
BYDDF	BYD	$37.05
M²	Sociedad Quimica y Minera de Chile	$100.79
JKS	JinkoSolar	$68.15
ACB	Petroleo Brasileiro SA – Petrobras	$15.46
MTT	Tata Motors	$29.98

Best Emerging Markets Stocks: Vale (VALE)

A mining company based in Brazil, Valley (NYSE:VALLEY) is very well positioned to take advantage of the upcoming rebound in the US and Chinese economies, the electric vehicle revolution, the recovery of automotive supply chains and strong demand for solar panels and wind turbines.

Vale derives most of its revenue from iron ore, which, of course, is used to make steel. The recovery of automotive supply chains is expected to drive more vehicles being built, while pent-up demand for air travel is expected to significantly increase demand for new aircraft. Both of these trends are expected to significantly increase steel demand and therefore significantly increase Vale’s iron ore sales.

The company also produces copper, which is used in electric vehicle batteries, solar panels and wind turbines. Finally, the company sells nickel, which is also used to make batteries for electric vehicles.

Despite all these positive catalysts, the forward price-earnings ratio for VALE stock is a measly 3.5.

Baidu (BIDU)

Baidu (NASDAQ:BIDU), a Chinese search engine and tech giant, has never been a top target for the country’s regulators during the tech crackdown. And Beijing seems to be holding back on this initiative, at least for now.

Moreover, China’s anti-coronavirus measures are also being eased and the country is looking to use “efficient investments” to boost its economy.

“The second largest search engine in the world”, Baidu is becoming the world’s leading robotaxi operator. The company’s robotaxi business in China operates in “10 cities and [has completed] more than 500,000 journeys over three quarters.

Looking for Alpha Contributor Mobility Matters Research recently estimated that “by 2030” the company could generate $1.6 billion in annual revenue. ”

Eventually, Baidu could bring its robotaxi business to many other countries. However, the forward price/earnings ratio of BIDU stock is slightly below 20. This is a very attractive valuation, given its powerful search engine and its leadership in the robotaxi sector.

Best Emerging Markets Stocks: BYD (BYDDF)

Business is booming for BYD (OTCMKTS:BYDDF), who Investor’s Business Daily recently called “China’s largest electric vehicle manufacturer, [and] arguably the largest manufacturer of electric vehicles in the world.

In July, the company’s electric vehicle sales soared 222% year-over-year to a record 162,350. And its second-quarter sales growth was hugely impressive, too. In the last quarter, its unit sales jumped an incredible 256% year-on-year and 24% from the first quarter to 355,000. BYD sold 100,000 more electric vehicles than You’re here (NASDAQ:TSLA) in the first quarter, and Warren Buffet Berkshire Hathaway (NYSE:BRK.B) owns a 7.7% stake in BYD.

The Chinese company is looking to expand its EV business to many other countries, and it also has a significant EV battery business, allowing it to benefit from the EV boom in more ways than one.

Sociedad Quimica y Minera de Chile (SQM)

Like another InvestorPlace columnist, Alex Sirois, recently underlined, Sociedad Quimica y Minera de Chile (NYSE:M²) “is growing and improving rapidly,” with first-quarter revenue of $2.02 billion “compared to $528.5 million a year earlier.”

Sirois noted that, “Lithium sales accounted for $1.45 billion of its revenue” in the first quarter, so Sociedad is as much a pure play on lithium as you’ll find. Of course, given the rapidly accelerating electric vehicle revolution, lithium demand is expected to remain incredibly strong for the foreseeable future.

Additionally, the lithium miner is highly profitable, as its Q1 net profit was $796 million in the first quarter, while its EBITDA margin, excluding certain items, was almost 59%. SQM’s first quarter results “reflect…the impact of higher prices across all of our businesses, where significant increases in lithium prices stand out,” CEO Ricardo Ramos said in a statement included in his statement. press release on first quarter results.

In 2021, Sociedad generated operating profit of $973 million, compared to $375 million in 2020 and $442 million in 2019.

Best Emerging Markets Stocks: JinkoSolar (JKS)

The reaction of by JinkoSolar (NASDAQ:JKS) the Democrats’ budget bill passed more moderately than many other names in the sector.

Investors appear to be concerned that the company will be penalized by the generous manufacturing tax credits provided for in the bill, which will be reserved for companies with factories in the United States.

But China-based Jinko has a big factory in Florida that it can easily expand. And as one of the largest solar panel manufacturers in the world, Jinko is poised to benefit from huge demand for solar power in many other regions including India, EU and, well sure, China.

It should also be noted that the price of all panels sold by Jinko in the United States will be reduced due to the extension of the solar investment tax credit under the budget. Additionally, Jinko manufactures some of the most efficient solar modules in the industry, giving it an easy win over companies offering cheaper panels.

Petroleo Brasileiro SA – Petrobras (PBR)

A huge oil company based in Brazil, Petrobras (NYSE:ACB) reported strong first-quarter results, with free cash flow jumping 61% to a very strong $12.8 billion. For the year, analysts on average predict the oil company’s profits will rise 74% year-on-year.

PBR stock recently received a near-perfect composite score of 99 from Investor’s Business Daily, and stocks have an incredibly high forward dividend yield of almost 45%.

Although oil prices could easily continue to fall in the future due to various factors, including the electric vehicle revolution and a possible ceasefire in Ukraine, the tiny forward price/earnings ratio of 3.4 , as well as its huge dividend yield, more than offsetting any potential drop in oil prices.

Best emerging market stocks: Tata Motors (TTM)

The India-based automaker’s fledgling electric vehicle business is starting to take off. In effect, Tata (NYSE:MTT) expects to sell about 50,000 electric vehicles in its current fiscal year and 100,000 in the following fiscal year.

The automaker’s supply chain situation is improving, boosting its overall financial results. In Tata’s first quarter of fiscal 2023, which ended in June, its commercial vehicle and passenger vehicle revenues both more than doubled from the same period a year earlier.

Its overall revenue climbed 8% year-on-year to $9 billion, while its EBITDA margin jumped two percentage points year-on-year to 6.1%.

“The CV industry continued to see growing demand across all segments, driven by a recovering economy. With the semiconductor shortage sequentially easing and our increasing agility, Tata Motors delivered a strong quarter” , said the company’s chief executive, Girish Wagh.

As of the date of publication, Larry Ramer held a long position in JKS. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.