Five catalysts for international value stocks in 2026 and beyond

International value stocks quietly outpaced US equities in 2025, and the forces behind this shift appear early rather than exhausted. Attractive valuations, combined with improving fundamentals and policy reforms, are setting the stage for a potential re-rating in many non-US markets.

Earnings growth looks poised to strengthen as global activity improves, fiscal support builds in Europe and Japan’s ongoing corporate and market reforms gain traction. Currency trends may further enhance returns if a softer US dollar boosts the value of overseas earnings for US-based investors.

Together, these dynamics suggest international value could play a more central role in portfolios seeking diversification beyond an increasingly concentrated US equity market.