3 Emerging Market Stocks to Buy and Hold for 2026

Key Points

• DLocal is well-positioned as a fintech in emerging markets, streamlining e-commerce for business and consumers.
• Grab Holdings is monetizing its platform as it expands and penetrates with services including ride-hailing, delivery, and autonomous vehicles.
• Arco Dorados' digital transformation is driving results and is expected to underpin growth and margin recovery.

2026 is going to be a good year for emerging markets (EMs). They are forecasted to lead global growth with gross domestic product (GDP) in the 4% to 4.5% range, underpinned by expanding middle classes and rising digital adoption. 

For investors, that backdrop matters because GDP growth supports “everyday economy” companies in fast-growing regions: payments, mobility, delivery, and value-oriented consumer brands. The three stocks below offer different ways to tap emerging-market consumer spending without relying on one single country’s cycle.

DLocal Provides Fintech Services Throughout the Emerging Landscape

DLocal NASDAQ: DLO provides payment processing and pay-in solutions for businesses and enterprises throughout key emerging markets. Its cross-border services enable easier access for consumers, increasing satisfaction while streamlining operations for companies.

DLocal's 2025 highlights include accelerating revenue growth, improving profitability, and record-setting free cash flow, with metrics pointing to continued strength in 2026.

Total payment volume also reached a record, and is expected to be record-breaking in 2026 also. 

Analyst trends are highlighting the stock’s value. DLocal has seen increased coverage and an uptick in price targets, with the consensus target pointing to 15% upside and the high-end pointing to about 50%. 

Analysts at firms including JPMorgan Chase, Goldman Sachs, and HSBC cite factors including the new CEO, turnaround efforts, improved financial clarity, and confidence in long-term growth. Headwinds remain, but catalysts are also ahead, including the upcoming 2026 World Cup, which is expected to drive travel, tourism, fan-based purchases, and gambling throughout the emerging landscape. 

Grab Holdings On Track to Become AV Leader in Southeast Asia

Grab Holdings NASDAQ: GRAB is a Southeast Asian "superapp" that provides ride-hailing, delivery, and fintech services. The company’s growth is supported by its first-mover advantage in an untapped market, as well as aggressive investments in new technology.

Among the technologies Grab is currently testing is autonomous vehicles. When approved. Grab will be the first to offer autonomous transportation services in the region.

Until then, it is sustaining a double-digit growth pace, producing profits, and analysts are supporting the market. 

Grab has seen numerous price target increases in Q4 2025. For this Moderate Buy-rated stock, analysts expect approximately 22% upside by consensus, with some of the highest ratings calling for as much as 35% upside. 

Analysts cite the successful monetization of the superapp, the company's pivot to profitability, expanding services, and comp-user growth as reasons to stay bullish on Grab Holdings. Looking forward, they forecast a sustained 30% revenue CAGR through the first part of the next decade, compounded by improving margins.

Assuming the company meets its expectations, the four times 2035 earnings it trades for today are pennies on the dollar for investors with the patience to wait. 

Arco Dorados: The McDonald’s of Latin America

Arco Dorados NYSE: ARCO is the world’s largest independent McDonald’s NYSE: MCD franchisee, operating across Latin America and the Caribbean. 

The stock struggled in 2025 due to margin compression but is set up to rebound in 2026. Not only is it on track to sustain growth, but it is also on track to rebuild margins amid a robust digital transformation.

The company’s strategic lens is often described as the Four D’s: Digital, Delivery, Drive-thru, and Development, which aims to lift traffic, convenience, and store-level economics.

Upgrades and technology investments, including loyalty programs, led to improved traffic and customer satisfaction in late 2025, and are expected to continue paying off in the upcoming year. 

Arco Doradoes is a good addition to an EM portfolio for more reasons than its growth and blue-chip association with its parent company. The stock pays a reliable dividend that can help reduce portfolio volatility and increase total returns over time. Arco also provides investors with exposure to McDonald's at a significant discount and a higher yield.