Benzinga's 10 Best International Value Stocks to Buy Now: Market Analysis Report

Benzinga’s January 9, 2026 publication titled “10 Best International Value Stocks to Buy Now” arrives at a traditional market inflection point when investors often reassess positioning and seek opportunities that the broader market may have overlooked [1]. The article identifies ten international equities across six countries, emphasizing deep value characteristics—particularly low price-to-earnings multiples relative to fundamentals and historical averages. This thematic approach aligns with cyclical patterns where value strategies tend to outperform growth during certain phases of the economic cycle, though timing such rotations remains notoriously difficult.

The selection framework employed by Benzinga prioritizes stocks trading at significant discounts to intrinsic value estimates, with several recommendations exhibiting P/E ratios substantially below broader market averages. However, these extreme discounts often reflect legitimate risk factors that investors must carefully evaluate rather than purely representing market inefficiencies. The geographic composition—particularly the 40% concentration in South Korean equities—introduces currency and geopolitical considerations that U.S.-based investors should explicitly factor into portfolio construction decisions [0].

The publication date’s sector performance data reveals important contextual relationships that amplify or dampen stock-specific value narratives. The Basic Materials sector (+1.38%) was the second-best performing sector, which aligns with the strong momentum observed in POSCO Holdings (+3.25%) and helps explain why Gerdau (-0.13%) resisted broader market weakness despite its Basic Materials classification [0]. This sector-specific tailwind suggests that steel-related value recommendations may benefit from industrial metals demand trends, though investors should recognize that sector momentum can reverse rapidly based on macro-economic developments.

Conversely, the Financial Services sector (-0.85%) was among the worst performers on the publication date, which appears to have overridden value positioning in Chinese fintech stocks Jiayin Group and FinVolution Group [0]. This sector pressure is particularly relevant for understanding why FinVolution Group declined 3.29% despite trading at an extremely depressed P/E of 3.29x—the market appears to be pricing ongoing regulatory uncertainty and potential credit quality concerns rather than pure valuation opportunity. Similarly, Communication Services stocks SK Telecom and KT Corp. declined 0.85% and 0.79% respectively, despite the sector posting modest gains (+0.06%), suggesting stock-specific concerns beyond sector dynamics [0].

The ten-stock recommendation list exhibits significant concentration risk that warrants careful consideration. South Korean equities represent four of the ten recommendations (POSCO Holdings, Korea Electric Power, SK Telecom, and KT Corp.), comprising 40% of the total selection [0]. This concentration introduces single-country exposure risks including Korean won currency volatility, domestic economic conditions, and region-specific geopolitical developments. U.S. investors constructing portfolios based on this list should recognize that they are effectively making a partial bet on Korean economic performance and currency stability.

Chinese equities account for two recommendations (Jiayin Group and FinVolution Group), both in the fintech sector and both trading at extreme value levels (P/E ratios of 0.69x and 3.29x respectively) [0]. This dual concentration—in both geography and sector—magnifies the importance of understanding Chinese regulatory developments affecting consumer lending platforms. The remaining four recommendations distribute across Japan (Honda Motor), Brazil (Gerdau), South Africa (Sasol), and Netherlands (LuxExperience), providing some geographic diversification but introducing additional currency exposure considerations for U.S.-based investors [1].

The recommended stocks present a wide spectrum of valuation profiles that require differentiated investment approaches. At the extreme end of the value spectrum, Jiayin Group trades at a P/E ratio of just 0.69x, implying the market prices the stock at less than one times annual earnings [0]. Such extreme discounts typically reflect substantial business model risks, regulatory concerns, or earnings quality questions that warrant thorough due diligence. LuxExperience (P/E 1.33x), FinVolution Group (P/E 3.29x), and Korea Electric Power (P/E 3.94x) similarly trade at deep discounts that may or may not represent genuine mispricing depending on the sustainability of their business operations [0].

The mid-tier value stocks include Sasol Ltd. (P/E 10.58x), Honda Motor (P/E 10.36x), Gerdau (P/E 14.00x), and KT Corp. (P/E 13.83x), representing more traditional value territory where discount magnitudes are more modest but business visibility may be higher [0]. These stocks offer more conventional value characteristics with somewhat clearer catalysts for potential revaluation. SK Telecom (P/E 19.91x) and notably POSCO Holdings (P/E 50.74x) represent higher-multiple stocks that may be included for other fundamental reasons such as dividend yield, asset value, or turnaround potential rather than pure earnings-based value characteristics [0].

The heavy South Korean representation in the Benzinga list (4 of 10 stocks) reflects several market dynamics worth understanding. Korean equities have historically traded at discounts to developed market peers, potentially due to governance concerns, corporate structure complexities (particularly chaebol relationships), and periodic political tensions affecting investor sentiment [0]. For value investors, this discount environment creates opportunities if such structural issues are being over-penalized, but also raises questions about whether the discount reflects legitimate concerns about shareholder rights or minority investor protections.

The Korean stocks recommended span diverse sectors—steel (POSCO Holdings), utilities (Korea Electric Power), and telecommunications (SK Telecom, KT Corp.)—suggesting the publication’s authors see value across the Korean market rather than in sector-specific opportunities [0][1]. This breadth of selection implies a thesis that Korean equity markets broadly offer attractive valuations, though investors should be aware that individual stock selection within that geographic framework remains essential.

The extremely depressed valuations assigned to Chinese fintech stocks Jiayin Group (P/E 0.69x) and FinVolution Group (P/E 3.29x) warrant particular scrutiny [0]. These multiples reflect the substantial regulatory uncertainty following China’s fintech crackdown, which fundamentally altered the operating landscape for consumer lending platforms. While such low valuations might suggest substantial upside if regulatory conditions normalize, investors should consider the possibility that current valuations appropriately price ongoing risks including potential business model restrictions, capital requirements, or competitive pressures from state-aligned alternatives.

The divergence between Jiayin Group’s 2.07% gain and FinVolution Group’s 3.29% decline on the same publication date suggests that investors are differentiating between these fintech peers based on factors not immediately apparent from aggregate valuation metrics [0]. This stock-specific trading pattern underscores the importance of company-level due diligence rather than relying solely on screen-based value factors when evaluating Chinese equities in regulated or uncertain industries.

Several recommendations—particularly in steel (POSCO Holdings, Gerdau) and energy/chemicals (Sasol)—carry significant cyclical exposure that investors should explicitly recognize [0][1]. Steel producers are highly sensitive to global industrial demand conditions, infrastructure spending, and automotive production levels, while integrated energy/chemical companies like Sasol face commodity price volatility that directly impacts cash flow generation. Current sector momentum in Basic Materials (+1.38%) may provide near-term support, but cyclical positions require timing considerations that pure value screening does not address [0].

Honda Motor’s inclusion reflects ongoing expectations for automotive industry consolidation and potential upside from electric vehicle transition progress, though the stock’s current P/E of 10.36x suggests the market remains skeptical about near-term EV competitiveness [0]. The automotive sector’s structural transition creates both risks and opportunities that investors should evaluate independently rather than relying solely on historical valuation metrics.

Chinese fintech stocks Jiayin Group and FinVolution Group face ongoing regulatory uncertainty that could further impair business models or force restructuring [0][1]. The extreme discounts embedded in current valuations primarily reflect this regulatory risk rather than pure market inefficiency. Investors considering these positions should verify current regulatory standing and monitor policy developments closely, as negative regulatory news could trigger substantial additional downside despite already depressed valuations.

The 40% South Korean concentration introduces currency exposure (Korean won volatility) and single-country economic risk into portfolios constructed based on this recommendation list [0]. Additionally, the combined China geographic and fintech sector concentration (two stocks) magnifies the impact of any adverse developments in either dimension. Investors should consider whether their overall portfolio already carries emerging market or specific country exposures that would compound these concentration risks.

Steel producers (POSCO Holdings, Gerdau) and energy/chemicals (Sasol) are highly sensitive to global economic conditions and commodity price cycles [0][1]. A slowdown in global industrial activity could pressure margins and cash flow despite attractive current valuations. The steel sector’s exposure to Chinese demand is particularly relevant given ongoing concerns about Chinese industrial output and infrastructure spending levels.

Several recommended stocks—including LuxExperience, Jiayin Group, and SK Telecom—have average daily trading volumes below 200,000 shares, which may affect execution quality for larger positions [0]. This liquidity constraint could result in wider bid-ask spreads and potentially meaningful price impact when entering or exiting positions, particularly during periods of market stress.

Several recommended stocks have upcoming earnings reports that could validate or invalidate value theses: POSCO Holdings reports February 2, 2026; Honda Motor reports February 12, 2026; and Gerdau reports February 18, 2026 [0]. These catalysts provide potential inflection points where market revaluation could occur if results exceed or miss expectations. Investors with medium-term time horizons may wish to position ahead of these events based on their assessment of underlying business fundamentals.

If market sentiment shifts toward value strategies or cyclical sectors, the Basic Materials and Energy exposures embedded in the recommendation list could benefit from sector-wide multiple expansion [0]. The current positioning of PKX (+3.25%) and SSL (+7.25%) on the publication date suggests some investors are already responding to value narratives in these segments, though persistence of such moves remains uncertain.

Several recommendations offer meaningful analyst price target upside, including POSCO Holdings with potential upside of +45.1% based on a $77.00 target price and Gerdau with potential upside of +16.6% based on a $4.60 target [0]. These analyst targets suggest that professional valuation frameworks may support higher fair value estimates, though investors should evaluate the assumptions underlying such targets independently.

The Benzinga publication identifies ten international value stocks spanning six countries with varying degrees of valuation attractiveness and associated risk factors. South Korean equities dominate the list at 40% concentration, introducing geographic and currency considerations that U.S. investors should explicitly incorporate into portfolio construction. Chinese fintech stocks trade at extreme discounts (P/E ratios below 4x) that primarily reflect regulatory uncertainty rather than purely market mispricing, requiring thorough due diligence on regulatory standing and business model sustainability.

Stock-specific performance on the publication date showed energy and steel-related stocks benefiting from sector momentum while Chinese fintech and telecom stocks faced selling pressure despite deep value positioning. This differential performance underscores the importance of understanding how sector dynamics interact with individual stock valuations rather than relying solely on screen-based value factors. Liquidity constraints in several recommendations may affect execution quality for larger positions, particularly during volatile market periods.

Upcoming earnings reports in February 2026 for several recommendations provide potential catalyst events where value theses could be tested or validated. The Basic Materials sector’s current positive momentum (+1.38%) may provide near-term support for steel-related recommendations, though cyclical positions require explicit recognition of economic sensitivity. Analyst price targets suggest potential upside in certain recommendations, though independent verification of valuation assumptions remains essential for informed decision-making.

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[0] Ginlix Analytical Database - Real-time market data, company overviews, and financial analysis retrieved January 9, 2026

[1] Benzinga - “10 Best International Value Stocks to Buy Now” URL: https://www.benzinga.com/markets/guidance/26/01/49824502/10-best-international-value-stocks-to-buy-now Published: January 9, 2026