A truly diversified portfolio is unlikely without global exposure. There is no doubt on the point that emerging economies will continue to grow at a faster rate than the developed world in the coming decade. In general, this would hold true even for the corporate sector. Therefore, accumulating some global stocks with high return potential is important.

I have discussed one stock each from China and India in this column. Additionally, I have discussed an EV battery manufacturer with the industry having positive tailwinds in the coming decade.

I believe that investors should consider at least 20% portfolio exposure to global stocks. Of course, investors need to look at several other names to create a diversified portfolio of global stocks with high return potential.

For now, I believe that these stocks have catalysts for a rally in the coming quarters. At the same time, these top global stocks for high return can be considered for the next five years.

Li Auto (LI)

Li Auto (NASDAQ:LI) is among the top global stocks with high return potential. The electric vehicle company is on a high growth trajectory, and I believe that LI stock will double in the next two quarters.

LI stock has already been an exception. Most EV stocks, including Tesla (NASDAQ:TSLA), have delivered negative returns in the last 12 months. However, LI stock has trended higher during this period.

In terms of performance compared to Chinese peers, three things stand out for Li Auto. First, the company’s delivery growth has been stellar and is backed by introducing new models coupled with aggressive retail expansion.

Further, Li Auto’s vehicle margin is significantly higher than Nio (NYSE:NIO) and XPeng (NYSE:XPEV). Finally, Li Auto reported a free cash flow of $975.9 million as of Q1 2023. Strong cash flows provide the company with high financial flexibility for expansion and investment in innovation. As delivery growth remains robust, I expect LI stock to surge higher.

MakeMyTrip (MMYT)

India is emerging as an attractive growth story with a focus on manufacturing and boosting domestic consumption. The travel and tourism sector has been in a revival mode, and I am bullish on the near and long-term outlook for tourism stocks. I believe that MakeMyTrip (NASDAQ:MMYT) is among the top global stocks for high return potential.

It’s worth noting that MMYT stock has been sideways in the last six months. A breakout on the upside seems imminent as domestic tourism remains robust.

Besides industry tailwinds, there are two catalysts for MMYT stock trending higher. First, the company’s gross booking for the financial year 2022 increased by 95% on a year-on-year basis. For FY2023, gross booking growth was 122% on a year-on-year basis. This is a clear indication of strong industry recovery, and bookings growth will likely remain stellar.

Further, the company reported adjusted operating profit for the first time in FY2022. For FY2023, operating profit tripled year-on-year to $70.3 million. With operating leverage, sustained margin improvement will translate into a rally for the stock.

Panasonic Holdings (PCRFY)

Panasonic Holdings (OTCMKTS:PCRFY) is an undervalued pick from global stocks that can surge in the coming quarters. PCRFY stock has trended higher by 23.7% for year-to-date 2023. A forward price-earnings ratio of 9.2 implies that PCRFY stock is poised for a bigger rally.

As an overview, Panasonic has a 10% market share in EV battery production. Being among the top five players, the company is positioned to benefit from favorable industry tailwinds.

It’s also important to note that Panasonic is pursuing aggressive expansion in terms of new EV battery plant construction. The company is contemplating a third battery plant in the U.S., with the second under construction. New plants will boost production and support market share growth.

I also like the fact that Panasonic is investing in innovation. The company is targeting to achieve a 20% boost in energy battery density by 2030. This will imply lighter and smaller batteries with the same range capability. The company also has 445 patents in the solid-state battery segment.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.