James Dennin, Kapitall: Trading in emerging markets was down last week amid speculation about the US bond-buying program and sliding growth amongst BRIC economies. The change reversed a decade-long trend in which the growth of developing economies wildly outpaced that in developed ones.
[Read more from Kapitall: 11 Undervalued Stocks Post-Earnings Season]
Falling prices for raw goods worldwide is part of the problem. These global trends are more likely to affect markets in developing economies such as Russia, which rely more heavily on high prices for the goods that they export. However, the overall trend is not necessarily a bad one. As The Wall Street Journal has recently reported , not all sectors within the developing world are down. In fact, certain industries that are seen as catering primarily to the middle class, such as technology or healthcare firms, are poised to do quite well in the next year.
As growth of US firms starts to slow, it might make sense for investors to diversifying their portfolio with more technology companies based overseas. We decided to run a screen for companies operating in this sector outside of the US, with high ROI and low P/E ratios as signs that they might be undervalued. All of the companies that turned up in our results are based in China, so we screened for companies with no long-term-debt , insulating them from the largely perhipheral, but still disconcerting Chinese credit crisis .We were left with five companies on our list. Click on the interactive chart to view quarterly sales over time. Sourced from Zacks Investment Research. &amp;amp;amp;amp;amp;amp;lt;p&amp;amp;amp;amp;amp;amp;gt;Your browser does not support iframes.&amp;amp;amp;amp;amp;amp;lt;/p&amp;amp;amp;amp;amp;amp;gt; Dig Deeper: Compare analyst ratings to annual returns for stocks mentioned Do you see investment opportunities in Chinese tech companies? Use the list below as a starting point for your own analysis: